# Defect Cost Tally Worksheet > Source: https://netray.co/tools/defect-cost-tally-worksheet > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer Count defects by type and attach a cost per defect to see which failure modes drive the most scrap and rework cost. ## Category quality ## Audience - Quality engineer - Inspector - Production supervisor ## Tool **Kind:** worksheet **Mode:** editable **Currency:** $ **Columns:** #### Defect type **Key:** defect **Type:** text #### Where found **Key:** area **Type:** select **Options:** - Receiving - In-process - Final - Customer #### Disposition **Key:** action **Type:** select **Options:** - Scrap - Rework - Use as is - Return to vendor #### Qty **Key:** qty **Type:** number #### Cost per defect **Key:** unit_cost **Type:** number **Format:** currency #### Total cost **Key:** cost **Type:** number **Expr:** qty * unit_cost **Format:** currency **Rows:** **Defect:** Burr on bore edge **Area:** In-process **Action:** Rework **Qty:** 42 **Unit cost:** 1.8 **Defect:** Oversize bore **Area:** Receiving **Action:** Return to vendor **Qty:** 6 **Unit cost:** 14.5 **Defect:** Surface scratch **Area:** Final **Action:** Scrap **Qty:** 11 **Unit cost:** 22 **Defect:** Missing label **Area:** Final **Action:** Rework **Qty:** 17 **Unit cost:** 0.9 **Defect:** Thread out of gauge **Area:** In-process **Action:** Scrap **Qty:** 4 **Unit cost:** 31 **Totals:** #### Total defects **Key:** qty **Agg:** sum **Format:** integer #### Total defect cost **Key:** cost **Agg:** sum **Format:** currency #### Largest single cost line **Key:** cost **Agg:** max **Format:** currency **Summary:** #### Average cost per defect **Key:** avg_cost **Expr:** sum_cost / sum_qty **Format:** currency **Primary:** true #### Largest line as share of total **Key:** top_share **Expr:** max_cost / sum_cost * 100 **Format:** percent **Notes:** Sort the exported file by total cost, then build a Pareto chart. Frequency and cost often give different priorities: the most frequent defect is rarely the most expensive. ## Content **Intro:** A tally of defects by count alone can send you after the wrong problem. This worksheet records each defect type with a cost per defect, so you can see what actually costs money and take clean data to a Pareto review. **Sections:** #### How to use the tally **Body:** Add a row for each defect type and stage where it was found. Enter the quantity from your inspection records and a cost per defect that covers scrap value, rework labor, or return handling. The total cost column multiplies quantity by cost. The summary shows the average cost per defect and how much of the total the largest line represents. Export to Excel, sort by total cost, and draw a Pareto chart for your quality meeting. #### Choosing a cost per defect **Body:** Keep it simple and defensible. For scrap, use material plus labor and machine cost spent up to the point of detection. For rework, use the labor and machine time of the repair plus reinspection. For return to vendor, include handling and freight, even if the supplier credits the part. Use the same method every period so trends mean something. Finance can usually give you a standard rate per hour for each work center. **Bullets:** - Scrap: material plus cost added to that point - Rework: repair time, reinspection and any extra handling - Return to vendor: handling, freight and delay cost #### Reading the result **Body:** Compare the ranking by quantity with the ranking by cost. In the example, burrs are the most frequent but cheap, while scratches and thread failures cost far more per piece. Pareto thinking says the top few failure modes cause most of the cost, so pick those for root cause work. Check where defects are found too: a defect caught at final costs more than the same defect caught at the first operation, which argues for earlier inspection. #### Common mistakes **Body:** Lumping several causes under a vague type such as bad part makes the data useless. Using precise looking costs from guesses is another issue, state the basis in the notes. Do not drop small defects entirely, since high-volume cheap defects can add up. Finally, re-run the tally after corrective actions to confirm the cost really fell, instead of declaring victory when the action closes. **Cta:** If defect counts live in spreadsheets, Netray can help pull scrap and rework transactions from your ERP into a cost-of-quality view automatically. **Faq:** #### What is a defect check sheet? **Answer:** A check sheet is a structured form for counting defects by type as they occur. It is one of the basic quality tools. This worksheet extends it by attaching a cost per defect, so the data supports a Pareto analysis. #### How do I build a Pareto chart from this? **Answer:** Export to Excel, sort rows by total cost descending, add a cumulative percentage column and plot the costs as bars with the cumulative percentage as a line. The first few bars usually cover most of the cost. #### Should I count defects or defective units? **Answer:** Pick one and say which in your procedure. One unit can have several defects, so counts can exceed units. For cost, count what drives action, usually defective units for scrap and defects for rework time. #### How often should I review the tally? **Answer:** Weekly for production reviews and monthly for management, using the same defect categories each time. Keep a controlled list of defect types so inspectors do not invent new names. ## Search terms defect tally sheet, defect log excel, defect check sheet template, cost of defects worksheet, scrap and rework tally, pareto data sheet, inspection defect record, defect count by type --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json