Waste-to-Energy Equipment worked example

Rework Cost at 98% reachable-defect share: a worked example in waste-to-energy equipment

Push reachable-defect share up to 98% and the picture changes. This example computes every intermediate figure at that operating point. Used by shop and quality leads to cost a nonconformance and decide whether to repair in place or scrap and refabricate.

The inputs for this scenario

  • Rework labor hours required: 120 hr (unchanged)
  • Shop labor rate (fully burdened): 95 $/hr (unchanged)
  • Reachable-defect share: 98 % (raised for this scenario; the documented default is 85)
  • Scrap and consumables cost: 4,200 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Cost = rework hours x shop rate x reachable-defect % + scrap & consumables) to the inputs above produces each figure below.
  • At this operating point the engine returns 15,372 $ for total rework cost, the number this scenario is built around.
  • At this operating point the engine returns 128 $ / piece for rework cost per unit.
  • At this operating point the engine returns 11,172 $ for variable rework cost.
  • At this operating point the engine returns 4,200 $ for fixed rework cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where reachable-defect share sits at 85% and the headline result is 13,890 $, this scenario comes in 10.67% above the baseline at 15,372 $.
  • It computes total rework cost and cost per unit from rework hours, shop rate, a reachable-defect percentage, and scrap and consumables. 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 rework cost: 15,372 $ (headline result)
  • Rework cost per unit: 128 $ / piece
  • Variable rework cost: 11,172 $
  • Fixed rework cost adder: 4,200 $

Run it with your numbers

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

Last reviewed 2026-05-12.