💸 Quality

Scrap & Rejection Cost Calculator

Calculate the true monthly cost of scrap and rework in your factory — including material waste, labour loss and hidden costs.

Scrap + rework combined

Cost per Unit

Extra labour + materials for rework
📊 Monthly Cost of Poor Quality
First Pass Yield
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Scrap Cost
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Rework Cost
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Total Monthly COPQ
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Annual Cost of Poor Quality
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COPQ as % of Revenue
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How This Calculator Works

Scrap Cost = Scrapped Units × (Material + Labour + Overhead) Rework Cost = Reworked Units × Rework Cost/unit Total COPQ = Scrap Cost + Rework Cost

COPQ (Cost of Poor Quality) typically runs at 5–20% of total revenue in manufacturing. Even a 1% reduction in rejection can save lakhs per year.

🔗 Related Calculators

✅ Yield Calculator (FPY/RTY) 📉 Defect Rate / PPM 📊 OEE Calculator

The Hidden Costs of Poor Quality

The visible cost of scrap — the material you throw away — is just the tip of the iceberg. Hidden costs include: inspector and sorter time, machine time wasted on bad parts, rescheduling, expediting replacements, customer complaints, warranty claims, and reputational damage. Studies show that hidden quality costs are typically 3–10× the visible scrap material cost.

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