Process Manufacturing worked example

Process Scrap Cost with scrapped process material weight of 330 lb: a worked example

This worked example runs the process scrap cost numbers for a tougher week than the baseline: scrapped process material weight of 330 lb instead of the typical 650 lb. Estimate process scrap cost from scrapped volume or mass, variable cost, labor, and disposal adders.

The inputs for this scenario

  • Scrapped process material weight: 330 lb (the input this scenario stresses; the baseline uses 650)
  • Material value or purchase cost: 2.4 $ / lb (held at the documented default)
  • Rework, handling, and labor cost: 420 $ (held at the documented default)
  • Disposal and overhead adders: 300 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total scrap cost = scrapped material × cost per unit + rework and labor + disposal adders.
  • total process scrap cost works out to 1,512 $ at these inputs, and this is the headline figure for the scenario.
  • scrap cost per unit works out to 4.58 $ / lb at these inputs.
  • material value lost works out to 792 $ at these inputs.
  • rework, disposal, and overhead adders works out to 720 $ at these inputs.

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 33.68% below the baseline at 1,512 $.
  • Use it when quantifying a scrap event, building a cost-of-poor-quality case, or comparing the true cost of scrap across products or lines. 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 process scrap cost: 1,512 $ (headline result)
  • scrap cost per unit: 4.58 $ / lb
  • material value lost: 792 $
  • rework, disposal, and overhead adders: 720 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Process Scrap Cost calculator, set scrapped process material weight to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.