Quality & Metrology worked example

Quality Escape Cost with defective units that escaped to the customer of 25 units: a worked example

This worked example runs the quality escape cost numbers for a tougher week than the baseline: defective units that escaped to the customer of 25 units instead of the typical 50 units. Estimate the cost of a quality escape from the units that reached the customer, the cost per escaped unit, fixed containment cost, and labor and overhead.

The inputs for this scenario

  • Defective units that escaped to the customer: 25 units (the input this scenario stresses; the baseline uses 50)
  • Rework or replacement cost per escaped unit: 85 $ / unit (held at the documented default)
  • Fixed containment and sorting cost: 1,200 $ (held at the documented default)
  • Labor and overhead adder: 600 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total quality escape cost = escaped units × cost per escaped unit + fixed containment cost + labor and overhead adder.
  • Total quality escape cost works out to 3,925 $ at these inputs, and this is the headline figure for the scenario.
  • Cost per escaped unit works out to 157 $ / piece at these inputs.
  • Variable escape cost works out to 2,125 $ at these inputs.
  • Fixed containment and overhead cost works out to 1,800 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where defective units that escaped to the customer sits at 50 units and the headline result is 6,050 $, this scenario comes in 35.12% below the baseline at 3,925 $.
  • Use it after an escape or return event to quantify the total financial impact for a COPQ report, corrective-action business case, or supplier chargeback. 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 quality escape cost: 3,925 $ (headline result)
  • Cost per escaped unit: 157 $ / piece
  • Variable escape cost: 2,125 $
  • Fixed containment and overhead cost: 1,800 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Quality Escape Cost calculator, set defective units that escaped to the customer to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.