KEVOS® WORKOS · Manufacturing
Scrap Cost Impact
What is scrap costing you?
Estimates the direct cost of scrap for a period.
Open the calculatorRuns in your browser. No account needed.
How this tool works
Inputs, units and where to find them
| Input | Unit | Typical source |
|---|---|---|
| Units produced | units | Units produced in the period |
| Cost / unit | $ | Cost accumulated per unit at the point of scrap |
| Scrap rate | % | Measured scrap rate |
Method and formulas
- Scrap units = units × scrap rate
- Direct cost = scrap units × cost per unit
Limitations
- Direct cost only; lost capacity, rework and customer effects are extra
Typical uses
- Making the case for a quality improvement
- Monthly cost-of-quality reporting
Who it is for
- Quality and production managers
What you get
- Direct scrap cost and units
- Good output
Interpreting the result
- Use the figure as a minimum value of fixing the cause
References
- Juran J. M. and De Feo J. A., Juran’s Quality Handbook (McGraw-Hill), cost of poor quality
WORKOS tools are screening and decision-support utilities. Verify important financial, engineering, safety, legal or operational decisions using appropriate professional standards and your organisation’s approved data.
