Pump, Compressor & Rotating Equipment Assembly worked example

Rework Cost at 58% share of units actually reworkable: a worked example in pump, compressor & rotating equipment assembly

Suppose share of units actually reworkable falls to 58%. This page works the full calculation at that level so you can see exactly which result moves and by how much. 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.

The inputs for this scenario

  • Units requiring rework: 100 units (held at the documented default)
  • Rework labor and parts cost per unit: 45 $ / unit (held at the documented default)
  • Share of units actually reworkable: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed rework-station overhead: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Rework Cost cost = quantity × rate × capture factor + fixed cost.
  • Weighted cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Per piece value works out to 28.6 $ / piece at these inputs.
  • Captured value works out to 2,610 $ at these inputs.
  • Fixed adjustment works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where share of units actually reworkable sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • 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. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Weighted cost: 2,860 $ (headline result)
  • Per piece value: 28.6 $ / piece
  • Captured value: 2,610 $
  • Fixed adjustment: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Rework Cost calculator, set share of units actually reworkable to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.