How do you calculate total rework cost?

Multiply reworked units by per-unit rework cost by the reworkable share, then add fixed overhead. With 100 units at $45, 80% reworkable, and $250 fixed, total is $3,850 and per-unit is $38.50.

What does the reworkable-share factor do?

It scales cost to the fraction of flagged units that can actually be salvaged, 80% here. The other 20% are scrapped and belong in a separate scrap-cost calculation.

Is rework cheaper than scrapping a compressor?

Often, but not always. If per-unit rework approaches the fresh build cost, scrap-and-rebuild may win. This tool gives the rework side of that comparison, $38.50 per unit in the default.

Why is per-unit rework cost higher than the labor rate?

Because the fixed rework-station overhead is spread across the batch. The $250 fixed cost adds $2.50 per unit across 100 units on top of the variable rework spend.

How do I reduce rework cost?

Fix the root cause driving defects, seal seating, torque control, alignment, so fewer units enter rework at all. Reducing the reworked-unit count attacks the largest term directly.

Does this include the cost of the original failed build?

No. It covers only the incremental cost to repair. The sunk build cost is already in your standard cost; this is the added spend to recover the unit.

Pump, Compressor & Rotating Equipment Assembly calculator

Rework Cost Calculator

Rework Cost quantifies what it costs to rescue defective pump and compressor assemblies that fail test, reseating seals, retorquing fasteners, correcting alignment, rather than scrapping them. Quality engineers and cost accountants use it to decide whether rework is cheaper than scrap-and-rebuild and to put a real dollar figure on first-pass-yield losses. Because rework consumes labor, parts, and test-stand time, its per-unit cost often rivals a fresh build. Making that cost visible is the fastest way to justify fixing the root cause instead of endlessly repairing symptoms.

What this calculator does

Rework Cost quantifies what it costs to rescue defective pump and compressor assemblies that fail test, reseating seals, retorquing fasteners, correcting alignment, rather than scrapping them.
Use it when rework cost in pump, compressor and rotating equipment assembly is being put through a pump, compressor and rotating equipment assembly weighted-cost review.
It computes total rework cost as units times per-unit cost times reworkable-share plus fixed overhead, then divides by units for a per-unit figure.

Formula used

Rework Cost cost = quantity × rate × capture factor + fixed cost
Per-unit rework cost = total cost ÷ quantity

Inputs explained

Units requiring rework:
Rework labor and parts cost per unit:
Share of units actually reworkable:
Fixed rework-station overhead:

How to use the result

Use it when comparing rework versus scrap or building the cost case to eliminate a recurring assembly defect.
It assumes every reworkable unit passes on the second try, units that fail rework twice cost more than this shows.

Current U.S. benchmarks

Industrial electricity averages 8.71 cents per kWh across the U.S. (EIA, May 2026), up 5.1% from a year earlier. Energy-intensive steps carry this directly into unit cost.
Manufacturing hourly earnings average $30.35 (BLS, Jul 2026), up 4.2% from a year earlier. Median machinist pay is $28.24/hr (OEWS 2025), with state medians on each state page. Manufacturers have 481k open positions nationally (BLS JOLTS).
Steel mill PPI stands at 374.203 (BLS, Jul 2026), up 22.5% from a year earlier. New factory orders are up 7.4% year over year (Census).
The U.S. has 21,668 machinery manufacturing establishments employing about 1,086,146 workers (Census County Business Patterns, 2023).

Common questions

How do you calculate total rework cost? Multiply reworked units by per-unit rework cost by the reworkable share, then add fixed overhead. With 100 units at $45, 80% reworkable, and $250 fixed, total is $3,850 and per-unit is $38.50.
What does the reworkable-share factor do? It scales cost to the fraction of flagged units that can actually be salvaged, 80% here. The other 20% are scrapped and belong in a separate scrap-cost calculation.
Is rework cheaper than scrapping a compressor? Often, but not always. If per-unit rework approaches the fresh build cost, scrap-and-rebuild may win. This tool gives the rework side of that comparison, $38.50 per unit in the default.
Why is per-unit rework cost higher than the labor rate? Because the fixed rework-station overhead is spread across the batch. The $250 fixed cost adds $2.50 per unit across 100 units on top of the variable rework spend.
How do I reduce rework cost? Fix the root cause driving defects, seal seating, torque control, alignment, so fewer units enter rework at all. Reducing the reworked-unit count attacks the largest term directly.

Last reviewed 2026-07-13.