Switchgear, Panelboards & Electrical Distribution worked example

Rework Cost at 58% share of defects captured before ship: a worked example in switchgear, panelboards & electrical distribution

This worked example runs the rework cost numbers for a tougher week than the baseline: 58% share of defects captured before ship instead of the typical 80%. Rework Cost quantifies what it truly costs to fix defective panelboards or switchgear before they ship — the labor to tear down and re-land, the material burned, and the fixed overhead of pulling a unit off the line.

The inputs for this scenario

  • Panels requiring rework: 100 units (held at the documented default)
  • Rework labor and material rate per panel: 45 $ / unit (held at the documented default)
  • Share of defects captured before ship: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed rework setup and admin cost: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Rework Cost cost = quantity × rate × capture factor + fixed cost.
  • Weighted cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Per piece value works out to 28.6 $ / piece at these inputs.
  • Captured value works out to 2,610 $ at these inputs.
  • Fixed adjustment works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where share of defects captured before ship sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • Use it at quality reviews to price a defect trend, or when building a business case for tooling, fixturing, or process changes that cut rework. 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

  • Weighted cost: 2,860 $ (headline result)
  • Per piece value: 28.6 $ / piece
  • Captured value: 2,610 $
  • Fixed adjustment: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Rework Cost calculator, set share of defects captured before ship to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.