Scrap Rate & Cost Calculator
Calculate annual scrap cost from defect rate, material value, and production volume to quantify waste impact.
Inputs
units
units
$
$
units
Results
Annual Scrap Cost
$100,000
Scrap Rate2.5%
Yield Rate97.5%
Annual Defects12,500 units
Cost per Defect$8
Monthly Scrap Cost$8,333.33
Cost of Quality2.5%
How to Use This Calculator
- Enter the total units produced in the period.
- Input the number of scrapped units and the material cost per unit.
- Set the labor and overhead cost absorbed into each scrapped part.
- Review the scrap rate percentage and total cost of scrap for the period.
- Identify top scrap reason codes and focus defect elimination efforts on the highest-cost causes.
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