Space Payload & Avionics Manufacturing worked example

Nonconformance Cost at 69% share reaching full mrb: a worked example in space payload & avionics manufacturing

Push share reaching full mrb up to 69% and the picture changes. This example computes every intermediate figure at that operating point. A quality engineer forecasting the labor and MRB burden a noisy build will impose on the program budget.

The inputs for this scenario

  • Nonconformance Reports Raised: 35 NCRs (unchanged)
  • Disposition Cost per NCR: 1,800 $/NCR (unchanged)
  • Share Reaching Full MRB: 69 % (raised for this scenario; the documented default is 60)
  • Quality System Overhead: 6,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total cost = NCRs raised x disposition cost per NCR x share reaching MRB + quality overhead) to the inputs above produces each figure below.
  • At this operating point the engine returns 49,470 $ for total nonconformance cost, the number this scenario is built around.
  • At this operating point the engine returns 1,413 $ / piece for nonconformance cost per unit.
  • At this operating point the engine returns 43,470 $ for variable nonconformance cost.
  • At this operating point the engine returns 6,000 $ for fixed nonconformance cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where share reaching full mrb sits at 60% and the headline result is 43,800 $, this scenario comes in 12.95% above the baseline at 49,470 $.
  • It computes total nonconformance cost as NCRs raised times disposition cost per NCR times the share that reaches full MRB, plus fixed quality-system overhead, and divides by NCR count for a per-NCR figure. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total nonconformance cost: 49,470 $ (headline result)
  • Nonconformance cost per unit: 1,413 $ / piece
  • Variable nonconformance cost: 43,470 $
  • Fixed nonconformance cost adder: 6,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.