Description
Estimate salable-unit cost after expected rework and scrap credits under a supplied production scenario.
A startup unit-cost or price comparison needs an explicit denominator and treatment of setup costs, scrap, occupancy and fees. A nominal discount, net unit cost and implied value answer different questions.
Estimate salable-unit cost after expected rework and scrap credits under a supplied production scenario.
When to use this tool
Use Prototype Rework Unit Cost Term when checking a specified unit price, prototype cost or program-price comparison.
How to use the tool and how it works
- Enter builtUnits, failedUnits, reworkFraction, reworkCost, scrapValue, initialCost. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read reworkUnits, netCost, costPerSalableUnit. Use the output convention below.
Require whole builtUnits >= 1 and failedUnits between zero and builtUnits, reworkFraction in [0,1] and nonnegative reworkCost, scrapValue and initialCost. reworkUnits = failedUnits*reworkFraction; netCost = initialCost+reworkUnits*reworkCost-(failedUnits-reworkUnits)*scrapValue. Divide netCost by builtUnits-failedUnits+reworkUnits, which must be positive, for costPerSalableUnit.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| builtUnits | Built Units | Required. Safe integer; minimum 1. |
| failedUnits | Failed Units | Required. Safe integer; minimum 0. |
| reworkFraction | Fraction of failed units assumed successfully reworked; may produce fractional modeled units. | Required. Finite number; minimum 0; maximum 1. |
| reworkCost | Rework Cost | Required. Finite number; minimum 0. |
| scrapValue | Scrap Value | Required. Finite number; minimum 0. |
| initialCost | Initial Cost | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| reworkUnits | Rework Units | Required. Finite number. |
| netCost | Net Cost | Required. Finite number. |
| costPerSalableUnit | Cost Per Salable Unit | Required. Finite number. |
{
"input": {
"builtUnits": 100,
"failedUnits": 20,
"reworkFraction": 0.5,
"reworkCost": 10,
"scrapValue": 2,
"initialCost": 1000
},
"output": {
"reworkUnits": 10,
"netCost": 1080,
"costPerSalableUnit": 12
}
}Limitations and assumptions
- Rework fractions model expected units, so counts can be fractional. Scrap credits may make net cost negative; rework success, demand and complete production costs are not inferred.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use a complete cost and revenue model when fixed costs, variable yields, market comparability or timing change the interpretation.
References
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