Nutraceuticals & Functional Foods worked example

Rework Cost at 65% share that passes qc after rework: a worked example in nutraceuticals & functional foods

This worked example runs the rework cost numbers for a tougher week than the baseline: 65% share that passes qc after rework instead of the typical 90%. Estimate the cost to rework a nonconforming lot from units to rework, rework cost per unit, and recovery rate, so teams can compare rework against scrap.

The inputs for this scenario

  • Units routed to rework: 5,000 units (held at the documented default)
  • Rework labor and material cost per unit: 0.2 $ / unit (held at the documented default)
  • Share that passes QC after rework: 65 % (the input this scenario stresses; the baseline uses 90)
  • Fixed line setup and retest cost: 200 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable rework cost = units to rework × rework cost per unit × share successfully reworked.
  • Total rework cost works out to 850 $ at these inputs, and this is the headline figure for the scenario.
  • Rework cost per unit reworked works out to 0.17 $ / unit at these inputs.
  • Variable rework cost works out to 650 $ at these inputs.
  • Fixed setup and retest cost works out to 200 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where share that passes qc after rework sits at 90% and the headline result is 1,100 $, this scenario comes in 22.73% below the baseline at 850 $.
  • Use it when a batch fails first-pass QC and you are deciding between rework and scrap, or when budgeting recovery effort for a known defect mode. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Total rework cost: 850 $ (headline result)
  • Rework cost per unit reworked: 0.17 $ / unit
  • Variable rework cost: 650 $
  • Fixed setup and retest cost: 200 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Rework Cost calculator, set share that passes qc after rework to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.