Scrap Rate & Cost of Poor Quality Calculator
Turn scrap and rework into your scrap rate, first-pass yield, and the real annual euro cost. Numbers update as you type.
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Most scrap is a handful of repeating causes.
Quality losses pull down the Quality factor of OEE, and the same defect usually repeats until you find its true cause. Fabrico uses computer vision to catch defects at the source and show why they happened, in a closed loop with the work order.
See how Fabrico cuts defectsHow to calculate scrap rate, yield and COPQ
- Scrap rate = scrap units ÷ total units produced.
- First pass yield (FPY) = (total − scrap − rework) ÷ total. Rework counts against FPY, even if the unit is eventually sold.
- Cost of poor quality (COPQ) = (scrap units × cost per scrapped unit) + (rework units × rework cost). This is the direct, defensible figure; returns, recalls and lost customers make the true number higher.
Quality is one of the three factors of OEE. See how it fits in Availability vs Performance vs Quality, and which losses it maps to in the six big losses.
Should rework count as a quality loss?
Yes. A unit that needs rework was not made right the first time, so it lowers first pass yield and adds cost, even if it is eventually shipped.
What is a good scrap rate?
It is highly industry- and process-specific. The useful target is your own trend heading down; world-class first pass yield is often quoted around 99% or better for mature lines.
How do I reduce it?
Find the recurring defect modes and their true cause with SPC and root-cause analysis, then control the process. More on root cause analysis.
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