How is source inspection cost calculated?

Inspection hours times the loaded rate, plus the fixed travel adder. Eight hours at $95 plus a $600 trip is $1,360. Coverage is priced separately rather than multiplied in, because the hours are paid in full.

Why does coverage not reduce the total?

Because a thinner sample makes nothing cheaper: the hours are worked, the travel is booked, the rate is invoiced. Multiplying cost by coverage would report a 35% sample as a 65% saving, when it is the same spend buying less.

When is source inspection worth the money?

When the expected cost of an escape exceeds the visit cost, or when a customer mandates it. Non-reworkable parts, suppliers in containment and launch parts with no buffer all push the escape side up.

How should travel be handled for a recurring program?

Per trip, not per lot. Two lots on one visit split one travel adder; monthly visits pay it monthly. Batching lots, aligning cadence or using a resident inspector converts the fixed adder into a shared cost.

Supplier Quality, Development & Audits calculator

Source Inspection Cost Calculator: Visit Cost and Coverage Price

Price a source-inspection visit before booking it. Enter on-site hours, the loaded rate, the coverage the visit verifies and fixed travel; the total, hourly cost and coverage-point price come back.

What this calculator does

Price a source-inspection visit: paid hours plus fixed travel, with coverage priced per point.

Formula used

Total source inspection cost = hours × loaded rate + travel adder
All-in cost per inspection hour = total ÷ inspection hours
Inspector labor = inspection hours × loaded rate
Cost per coverage point = total ÷ lot coverage percent

Inputs explained

On-Site Inspection Hours: Hours on site verifying the lot, setup included.
Loaded Inspector Hourly Rate: Fully burdened inspector rate, or the quoted rate.
Lot Coverage Inspected: Share of the lot the check plan verifies.
Coordination and Travel Adder: Fixed trip cost: travel, lodging, per diem, scheduling.

How to use the result

Best suited to deciding between source inspection and incoming, quoting customer-directed source inspection, budgeting an annual visit program.
The model prices the visit, not the escape risk the uninspected share leaves open. A program of repeated visits re-pays the travel adder every trip.

Current U.S. benchmarks

U.S. manufacturing runs at 75.7% of capacity (Federal Reserve, Aug 2026). New factory orders are up 8.5% year over year (Census).

Common questions

How is source inspection cost calculated? Inspection hours times the loaded rate, plus the fixed travel adder. Eight hours at $95 plus a $600 trip is $1,360. Coverage is priced separately rather than multiplied in, because the hours are paid in full.
Why does coverage not reduce the total? Because a thinner sample makes nothing cheaper: the hours are worked, the travel is booked, the rate is invoiced. Multiplying cost by coverage would report a 35% sample as a 65% saving, when it is the same spend buying less.
When is source inspection worth the money? When the expected cost of an escape exceeds the visit cost, or when a customer mandates it. Non-reworkable parts, suppliers in containment and launch parts with no buffer all push the escape side up.
How should travel be handled for a recurring program? Per trip, not per lot. Two lots on one visit split one travel adder; monthly visits pay it monthly. Batching lots, aligning cadence or using a resident inspector converts the fixed adder into a shared cost.

Last reviewed 2026-10-01.