Manufacturing Scrap & Rework Cost Calculator
Translate scrap and rework percentages into the full annual quality-loss cost — including material, labor, machine capacity, reinspection, disposal and failed rework.
Build the annual cost of scrap and rework
Where the annual loss is actually going
Annual savings if scrap and rework improve together
| Rate reduction | Annual quality loss | Annual savings | Machine hours recovered | Approx. final yield |
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Use external benchmarks carefully
APQC's public cross-industry benchmark pages currently show median scrap-and-rework costs of 5.0% of COGS and 1.0% of sales across their respective samples. OfficeQ's modeled loss can include additional machine, reinspection and handling costs, so this is context — not an apples-to-apples scorecard.
Model eight products, cells or process families
Products and process lines ranked by annual loss
| Rank | Product / process | Units / yr | First-pass yield | Scrap loss | Rework loss | Total annual loss | Loss / unit | Machine hrs |
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Annual loss by cost driver
Annual plant loss if defect rates move
Savings and recovered capacity at different defect reductions
| Scrap & rework reduction | Annual quality loss | Annual savings | Machine hours recovered | Labor + inspection hours recovered |
|---|
Cost-of-poor-quality framework
ASQ identifies scrap and rework as internal failure costs within Cost of Poor Quality. APQC separately benchmarks scrap-and-rework cost relative to COGS and sales; its public cross-industry pages currently show 5.0% and 1.0% medians respectively. Those definitions and populations may differ from this calculator, particularly because OfficeQ also models machine time, reinspection, disposal and failed rework. Treat benchmark comparisons as directional context, not a target or pass/fail threshold.
Research references: ASQ Cost of Quality; APQC Open Standards Benchmarking — scrap and rework cost as % of COGS / sales; NIST MEP manufacturing case studies on scrap, rework, first-pass yield and capacity improvement.
This tool is a management-cost model
Use actual plant accounting conventions when turning defect data into financial results. Avoid double-counting machine or labor costs already embedded elsewhere in product cost. The calculator does not replace a formal Cost of Quality system, OEE model, standard-cost variance analysis or quality-management audit.