Robotics & Automation worked example

Robot Scrap Savings at 2.3% scrap rate reduction captured by the robot: a worked example

This scenario runs the robot scrap savings calculation on the strong side: 2.3% scrap rate reduction captured by the robot, with every other input held at its documented default. Use it for ROI cases when the automation business case rests on yield and scrap reduction, not labor, so the scrap line is built from real inputs.

The inputs for this scenario

  • Annual production volume: 500,000 parts / yr (unchanged)
  • Scrap cost per rejected part: 4 $ / part (unchanged)
  • Scrap rate reduction captured by the robot: 2.3 % (raised for this scenario; the documented default is 2)
  • Added quality inspection and containment cost: 3,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Captured scrap savings = annual parts x scrap cost per part x captured scrap rate reduction) to the inputs above produces each figure below.
  • At this operating point the engine returns 49,000 $ / yr for net annual scrap savings, the number this scenario is built around.
  • At this operating point the engine returns 0.1 $ / piece for scrap savings per part.
  • At this operating point the engine returns 46,000 $ for captured scrap savings.
  • At this operating point the engine returns 3,000 $ for added quality and containment cost.

How this compares with the baseline

  • Against the tool's baseline example, where scrap rate reduction captured by the robot sits at 2% and the headline result is 43,000 $ / yr, this scenario comes in 13.95% above the baseline at 49,000 $ / yr.
  • Use it when building the quality half of an automation business case or verifying scrap savings after a robot goes live. 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

  • Net annual scrap savings: 49,000 $ / yr (headline result)
  • Scrap savings per part: 0.1 $ / piece
  • Captured scrap savings: 46,000 $
  • Added quality and containment cost: 3,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.