Scrap rate calculator
Measure scrap and rework against what entered the process, and cost the loss per good unit that actually shipped.
Methodology
Scrap rate = units scrapped ÷ units started. Rework rate = units reworked ÷ units started. Both are measured against what entered the process, not against what left it, because measuring against output hides the loss. Good units = started minus scrapped; reworked units are counted as good because they eventually ship, but they carry the rework cost. Scrap cost values each scrapped unit at material plus conversion cost, on the reasoning that a unit scrapped late has consumed both. Recovery value subtracts whatever the scrapped material is genuinely worth back, which for many processes is nothing. Total quality loss adds net scrap cost to rework cost, and loss per good unit spreads that across the units that actually shipped — the figure that belongs in a costing conversation. Units to start for one hundred good shows the yield uplift the process demands, which is how scrap consumes capacity as well as money. Excluded: warranty and field failure cost, the capacity the scrapped units occupied at the constraint, expediting and premium freight caused by shortfalls, inspection cost, and the customer consequence of a late order. You supply every input: this site holds no factory cost data, capacity figures, yields, cycle times or industry benchmarks, and never estimates them for you. Results are an orientation model for structuring a decision, not an industrial engineering study, a quotation, or safety, engineering or financial advice. Confirm equipment capability, staffing, process capability and cost with your own measurements before relying on them.
These calculations are informational estimates based on headline rates and transparent assumptions — not tax, accounting, or legal advice. Verify with a qualified local advisor before relying on the results.
Data limitations
- Manufacturing figures are operator-supplied inputs, not market data. GeoBusinessIQ holds no factory costs, production volumes, yields, cycle times, tooling prices or capacity data and does not estimate them — every result reflects only the figures you enter.
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