Process Manufacturing worked example

Process Scrap Cost with scrapped process material weight of 1,600 lb: a worked example

Push scrapped process material weight up to 1,600 lb and the picture changes. This example computes every intermediate figure at that operating point. costing scrap, yield loss, or rejected process material for a batch or campaign

The inputs for this scenario

  • Scrapped process material weight: 1,600 lb (raised for this scenario; the documented default is 650)
  • Material value or purchase cost: 2.4 $ / lb (unchanged)
  • Rework, handling, and labor cost: 420 $ (unchanged)
  • Disposal and overhead adders: 300 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total scrap cost = scrapped material × cost per unit + rework and labor + disposal adders) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,560 $ for total process scrap cost, the number this scenario is built around.
  • At this operating point the engine returns 2.85 $ / lb for scrap cost per unit.
  • At this operating point the engine returns 3,840 $ for material value lost.
  • At this operating point the engine returns 720 $ for rework, disposal, and overhead adders.

How this compares with the baseline

  • Against the tool's baseline example, where scrapped process material weight sits at 650 lb and the headline result is 2,280 $, this scenario comes in 100% above the baseline at 4,560 $.
  • It multiplies scrapped material weight by cost per pound, adds rework/labor and disposal/overhead adders, and returns total scrap cost plus cost per pound. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • total process scrap cost: 4,560 $ (headline result)
  • scrap cost per unit: 2.85 $ / lb
  • material value lost: 3,840 $
  • rework, disposal, and overhead adders: 720 $

Run it with your numbers

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

Last reviewed 2026-05-12.