How do you calculate rework cost?

Multiply rework labor hours by the shop rate by the reachable-defect percentage, then add scrap and consumables. With 120 hours at $95, 85% reachable, plus $4,200 scrap, total rework cost is $13,890.

What does 'reachable-defect share' mean?

It is the fraction of the defect you can actually access and repair with the planned hours. Some defects are partly buried behind welds or insulation; scoring 85% acknowledges that not every planned hour lands on reachable work.

What is the rework cost per unit?

Divide the total by the units involved. In the example, $13,890 across the batch is about $115.75 per unit, the figure to compare against scrap or concession cost.

When should I scrap instead of rework?

Scrap when the rework cost approaches or exceeds the replacement cost, or when repair risks the certified integrity of a pressure part. If $13,890 of rework nears a new-part price, scrapping is often the cleaner call.

Rework cost vs. scrap cost?

Rework cost keeps the part and pays to fix it; scrap cost writes off the part and its added value. Compare the two directly — this tool gives you the rework side; your scrap value gives the other.

Should the shop rate be fully burdened?

Yes. Use the fully burdened rate including overhead, benefits, and equipment, not the bare wage, or you will understate rework cost and make bad repair-versus-scrap decisions.

Waste-to-Energy Equipment calculator

Rework Cost Calculator

Rework cost is the price of making a defective waste-to-energy component right again — re-welding a boiler panel, re-machining a grate casting, re-lining a hopper — rather than shipping it or scrapping it. Shop managers and quality engineers use this figure to decide whether to rework, scrap, or concede, and to feed the true cost of quality into project financials. On WtE fabrications, where a single pressure-part weld repair can consume days of certified welder time, rework left uncosted quietly erodes margin. The calculator separates variable labor exposure, adjusted for how much of the defect is actually reachable, from fixed scrap and consumables.

What this calculator does

Estimates rework cost on a waste-to-energy fabrication from corrective labor hours, shop rate, and the share of flagged hours that are genuinely chargeable rework.
Used by shop and quality leads to cost a nonconformance and decide whether to repair in place or scrap and refabricate.
It computes total rework cost and cost per unit from rework hours, shop rate, a reachable-defect percentage, and scrap and consumables.

Formula used

Cost = rework hours x shop rate x reachable-defect % + scrap & consumables
Per hour = total cost / rework hours

Inputs explained

Rework labor hours required:
Shop labor rate (fully burdened):
Reachable-defect share:
Scrap and consumables cost:

How to use the result

Use it on a rework-versus-scrap decision or when rolling the cost of quality into a project's actual cost.
It assumes the reachable-defect percentage is estimated correctly; if hidden defects surface mid-repair, actual hours and cost can exceed the estimate, so treat the result as a planning baseline, not a ceiling.

Current U.S. benchmarks

As of Jun 2026, average hourly earnings in U.S. manufacturing are $30.27 (BLS), up 4.4% from a year earlier. Burdened shop rates typically run 1.3 to 1.8 times earnings once benefits and overhead are loaded.
Industrial electricity averages 8.66 cents per kWh across the U.S. (EIA, Apr 2026), up 5.5% from a year earlier. Energy-intensive steps carry this directly into unit cost.
Steel mill PPI stands at 348.53 (BLS, May 2026), up 6.7% from a year earlier. New factory orders are up 2.3% year over year (Census).

Common questions

How do you calculate rework cost? Multiply rework labor hours by the shop rate by the reachable-defect percentage, then add scrap and consumables. With 120 hours at $95, 85% reachable, plus $4,200 scrap, total rework cost is $13,890.
What does 'reachable-defect share' mean? It is the fraction of the defect you can actually access and repair with the planned hours. Some defects are partly buried behind welds or insulation; scoring 85% acknowledges that not every planned hour lands on reachable work.
What is the rework cost per unit? Divide the total by the units involved. In the example, $13,890 across the batch is about $115.75 per unit, the figure to compare against scrap or concession cost.
When should I scrap instead of rework? Scrap when the rework cost approaches or exceeds the replacement cost, or when repair risks the certified integrity of a pressure part. If $13,890 of rework nears a new-part price, scrapping is often the cleaner call.
Rework cost vs. scrap cost? Rework cost keeps the part and pays to fix it; scrap cost writes off the part and its added value. Compare the two directly — this tool gives you the rework side; your scrap value gives the other.

Last reviewed 2026-05-12.