Quality worked example
Scrap Cost with total units produced of 500 units: a worked example in quality
This worked example runs the scrap cost numbers for a tougher week than the baseline: total units produced of 500 units instead of the typical 1,000 units. Estimate the real dollar impact of scrap, rework, and yield loss.
The inputs for this scenario
- Total units produced: 500 units (the input this scenario stresses; the baseline uses 1,000)
- Scrap units: 42 units (held at the documented default)
- Material cost per unit: 3.25 $ (held at the documented default)
- Labor cost per unit: 1.1 $ (held at the documented default)
- Rework / disposal per scrap: 0.6 $ (held at the documented default)
Working through the calculation
- The calculation starts from the formula this tool documents: Scrap rate = scrap units รท total units.
- Total scrap cost works out to 208 $ / run at these inputs, and this is the headline figure for the scenario.
- Scrap rate works out to 8.4 % at these inputs.
- Cost per good part works out to 0.45 $ / good unit at these inputs.
- Good units works out to 458 units at these inputs.
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.
- Use it after a run or shift to quantify defect loss and prioritize which scrap drivers to attack first. 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 scrap cost: 208 $ / run (headline result)
- Scrap rate: 8.4 %
- Cost per good part: 0.45 $ / good unit
- Good units: 458 units
Run it with your numbers
- To rerun this with your own numbers, open the live Scrap Cost calculator, set total units produced to your actual value, and adjust the remaining inputs to match your operation.
Last reviewed 2026-05-12.