OEE & Factory Performance worked example

Yield Loss Cost at 92% loss capture rate: a worked example in oee & factory performance

This scenario runs the yield loss cost calculation on the strong side: 92% loss capture rate, with every other input held at its documented default. Use it when yield loss cost in oee and factory performance is being put through a oee and factory performance weighted-cost review.

The inputs for this scenario

  • Scrap and rework units: 100 units (unchanged)
  • Cost per defective unit: 45 $ / unit (unchanged)
  • Loss capture rate: 92 % (raised for this scenario; the documented default is 80)
  • Fixed disposition cost: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Weighted cost = quantity × rate × capture factor + fixed adjustment) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ for total yield loss cost, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for yield loss cost per unit.
  • At this operating point the engine returns 4,140 $ for variable yield loss cost.
  • At this operating point the engine returns 250 $ for fixed yield loss cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where loss capture rate sits at 80% and the headline result is 3,850 $, this scenario comes in 14.03% above the baseline at 4,390 $.
  • Use it when scoping a quality improvement, building a cost-of-poor-quality case, or prioritizing which defect modes to attack first. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Total yield loss cost: 4,390 $ (headline result)
  • Yield loss cost per unit: 43.9 $ / piece
  • Variable yield loss cost: 4,140 $
  • Fixed yield loss cost adder: 250 $

Run it with your numbers

  • Every input above is editable in the live Yield Loss Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.