Quality worked example

Scrap Cost with total units produced of 2,500 units: a worked example in quality

What does the result look like when total units produced reaches 2,500 units? The full calculation is worked below with real intermediate numbers. Use when quality losses need a number attached.

The inputs for this scenario

  • Total units produced: 2,500 units (raised for this scenario; the documented default is 1,000)
  • Scrap units: 42 units (unchanged)
  • Material cost per unit: 3.25 $ (unchanged)
  • Labor cost per unit: 1.1 $ (unchanged)
  • Rework / disposal per scrap: 0.6 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Scrap rate = scrap units รท total units) to the inputs above produces each figure below.
  • At this operating point the engine returns 208 $ / run for total scrap cost, the number this scenario is built around.
  • At this operating point the engine returns 1.68 % for scrap rate.
  • At this operating point the engine returns 0.08 $ / good unit for cost per good part.
  • At this operating point the engine returns 2,458 units for good units.

How this compares with the baseline

  • Against the tool's baseline example, where total units produced sits at 1,000 units and the headline result is 208 $ / run, this scenario lands almost exactly on the baseline at 208 $ / run.
  • A figure at this level is achievable when total units produced is genuinely sustained, not just peaked for a shift. It treats every scrapped unit as a uniform loss; in reality a part scrapped at final assembly costs far more than one rejected at the first operation.

Results at a glance

  • Total scrap cost: 208 $ / run (headline result)
  • Scrap rate: 1.68 %
  • Cost per good part: 0.08 $ / good unit
  • Good units: 2,458 units

Run it with your numbers

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

Last reviewed 2026-05-12.