Production Ramp, Scale-Up & Launch Readiness worked example

Launch Delay Cost at 81% share of burn truly unrecoverable: a worked example in production ramp, scale-up & launch readiness

This scenario runs the launch delay cost calculation on the strong side: 81% share of burn truly unrecoverable, with every other input held at its documented default. Use it when a ramp milestone is sliding and you need to size what the slip actually costs before approving recovery overtime or accepting a later SOP.

The inputs for this scenario

  • Days launch slips past SOP date: 30 days (unchanged)
  • Daily burn during the slip: 18,000 $/day (unchanged)
  • Share of burn truly unrecoverable: 81 % (raised for this scenario; the documented default is 70)
  • One-time penalty and expedite charges: 45,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Launch delay cost = days slipped x daily burn x unrecoverable share + one-time penalty charges) to the inputs above produces each figure below.
  • At this operating point the engine returns 482,400 $ for total launch delay cost, the number this scenario is built around.
  • At this operating point the engine returns 16,080 $ / piece for launch delay cost per unit.
  • At this operating point the engine returns 437,400 $ for variable launch delay cost.
  • At this operating point the engine returns 45,000 $ for fixed launch delay cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where share of burn truly unrecoverable sits at 70% and the headline result is 423,000 $, this scenario comes in 14.04% above the baseline at 482,400 $.
  • Use it the moment a launch date is at risk to build the business case for recovery actions or to size the financial exposure for leadership. 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 launch delay cost: 482,400 $ (headline result)
  • Launch delay cost per unit: 16,080 $ / piece
  • Variable launch delay cost: 437,400 $
  • Fixed launch delay cost adder: 45,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.