Pharmaceutical, Biotech & GMP Manufacturing worked example

Batch Failure Cost at 58% expected failure exposure: a worked example in pharmaceutical, biotech & gmp manufacturing

This worked example runs the batch failure cost numbers for a tougher week than the baseline: 58% expected failure exposure instead of the typical 80%. Estimate financial exposure from failed or rejected batches using batch count, cost per failed batch, applicable probability, and fixed recovery cost.

The inputs for this scenario

  • Failed or at-risk batches: 100 batches (held at the documented default)
  • Cost per failed batch: 45 $ / batch (held at the documented default)
  • Expected failure exposure: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed investigation or recovery cost: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable Batch failure cost = Failed or at-risk batches × Cost per failed batch × Expected failure exposure.
  • Expected batch failure cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Failure cost per batch works out to 28.6 $ / piece at these inputs.
  • Expected variable failure cost works out to 2,610 $ at these inputs.
  • Fixed recovery cost works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where expected failure exposure sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • Use it to size the cost of quality risk when justifying process improvements or prioritizing failure modes. 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

  • Expected batch failure cost: 2,860 $ (headline result)
  • Failure cost per batch: 28.6 $ / piece
  • Expected variable failure cost: 2,610 $
  • Fixed recovery cost: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Batch Failure Cost calculator, set expected failure exposure to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.