Waste-to-Energy Equipment worked example

Rework Cost at 61% reachable-defect share: a worked example in waste-to-energy equipment

This worked example runs the rework cost numbers for a tougher week than the baseline: 61% reachable-defect share instead of the typical 85%. 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.

The inputs for this scenario

  • Rework labor hours required: 120 hr (held at the documented default)
  • Shop labor rate (fully burdened): 95 $/hr (held at the documented default)
  • Reachable-defect share: 61 % (the input this scenario stresses; the baseline uses 85)
  • Scrap and consumables cost: 4,200 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Cost = rework hours x shop rate x reachable-defect % + scrap & consumables.
  • Total rework cost works out to 11,154 $ at these inputs, and this is the headline figure for the scenario.
  • Rework cost per unit works out to 92.95 $ / piece at these inputs.
  • Variable rework cost works out to 6,954 $ at these inputs.
  • Fixed rework cost adder works out to 4,200 $ at these inputs.

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 19.7% below the baseline at 11,154 $.
  • Use it on a rework-versus-scrap decision or when rolling the cost of quality into a project's actual cost. 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

  • Total rework cost: 11,154 $ (headline result)
  • Rework cost per unit: 92.95 $ / piece
  • Variable rework cost: 6,954 $
  • Fixed rework cost adder: 4,200 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Rework Cost calculator, set reachable-defect share to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.