Quality worked example

Rework Cost with reworked units of 200 units: a worked example in quality

This scenario runs the rework cost calculation on the strong side: reworked units of 200 units, with every other input held at its documented default. Use when rework needs to be converted into dollars.

The inputs for this scenario

  • Reworked units: 200 units (raised for this scenario; the documented default is 80)
  • Rework time per unit: 6 min (unchanged)
  • Loaded labor rate: 38 $ / hr (unchanged)
  • Extra material per unit: 1.2 $ (unchanged)
  • Lost capacity rate: 45 $ / hr (unchanged)

Working through the calculation

  • Applying the documented formula (Rework hours = units × minutes per unit ÷ 60) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,900 $ for total rework cost, the number this scenario is built around.
  • At this operating point the engine returns 9.5 $ / unit for cost per unit.
  • At this operating point the engine returns 20 hr for rework hours.
  • At this operating point the engine returns 240 $ for extra material.

How this compares with the baseline

  • Against the tool's baseline example, where reworked units sits at 80 units and the headline result is 760 $, this scenario comes in 150% above the baseline at 1,900 $.
  • Use it when you catch a defective lot, are deciding rework vs. scrap, or building a business case for a corrective action that eliminates the defect. 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 rework cost: 1,900 $ (headline result)
  • Cost per unit: 9.5 $ / unit
  • Rework hours: 20 hr
  • Extra material: 240 $

Run it with your numbers

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

Last reviewed 2026-05-12.