# Nonconformance Containment and Sort Cost Calculator

> Source: https://netray.co/tools/nonconformance-containment-and-sort-cost-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Calculate the cost and elapsed time to sort a suspect lot, including rework and scrap, and see how defect rate drives total cost.

## Category

quality

## Audience

- Quality manager
- Cost accountant
- Supplier quality

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Suspect quantity to sort

**Key:** suspect_qty

**Type:** number

**Default:** 1500

**Min:** 1

**Step:** 50

**Unit:** pcs

**Help:** All parts in the suspect lot, stock and WIP.

#### Sort rate per inspector

**Key:** sort_rate

**Type:** number

**Default:** 120

**Min:** 1

**Step:** 5

**Unit:** pcs/hour

#### Inspectors assigned

**Key:** inspectors

**Type:** number

**Default:** 3

**Min:** 1

**Step:** 1

**Unit:** people

#### Inspector loaded labor rate

**Key:** labor_rate

**Type:** number

**Default:** 38

**Min:** 0

**Step:** 1

**Unit:** $/hour

#### Expected defect rate found in sort

**Key:** defect_pct

**Type:** slider

**Default:** 8

**Min:** 0

**Max:** 40

**Step:** 1

**Unit:** %

#### Share of defects that must be scrapped

**Key:** scrap_share

**Type:** slider

**Default:** 25

**Min:** 0

**Max:** 100

**Step:** 5

**Unit:** %

#### Rework time per reworkable piece

**Key:** rework_min

**Type:** number

**Default:** 6

**Min:** 0

**Step:** 0.5

**Unit:** min

#### Rework labor rate

**Key:** rework_rate

**Type:** number

**Default:** 42

**Min:** 0

**Step:** 1

**Unit:** $/hour

#### Cost of a scrapped piece

**Key:** unit_cost

**Type:** number

**Default:** 22

**Min:** 0

**Step:** 0.5

**Unit:** $

**Outputs:**

#### Total sorting labor hours

**Key:** sort_hours

**Expr:** suspect_qty / sort_rate

**Format:** decimal

**Description:** Pieces divided by the rate of one inspector.

#### Elapsed time to finish the sort

**Key:** elapsed_hours

**Expr:** sort_hours / max(inspectors, 1)

**Format:** hours

**Description:** Calendar hours with the assigned team working in parallel.

#### Sorting cost

**Key:** sort_cost

**Expr:** sort_hours * labor_rate

**Format:** currency

#### Defective pieces found

**Key:** defects

**Expr:** suspect_qty * defect_pct / 100

**Format:** integer

#### Pieces scrapped

**Key:** scrap_qty

**Expr:** defects * scrap_share / 100

**Format:** integer

#### Rework cost

**Key:** rework_cost

**Expr:** (defects - scrap_qty) * rework_min / 60 * rework_rate

**Format:** currency

#### Scrap cost

**Key:** scrap_cost

**Expr:** scrap_qty * unit_cost

**Format:** currency

#### Total containment cost

**Key:** total_cost

**Expr:** sort_cost + rework_cost + scrap_cost

**Format:** currency

**Primary:** true

**Description:** Sorting plus rework plus scrap. Excludes freight, line stoppage and customer charges.

**Chart:**

#### Total containment cost vs defect rate

**Type:** line

**X:** defect_pct

**From:** 0

**To:** 40

**Steps:** 21

**Series:**

- total_cost

**Disclaimer:** Estimate only. It excludes expedite freight, production downtime, customer charges, administrative time and any cost recovered from a supplier.

## Content

**Intro:** When a lot is suspect, the first cost is not the defect itself but the work needed to find the bad pieces. This calculator estimates sorting labor, elapsed time, rework and scrap so you can size containment, set a supplier chargeback or justify earlier detection.

**Sections:**

#### How to use the calculator

**Body:** Enter the number of pieces that must be sorted, including stock, WIP and anything in transit. Set the sort rate per inspector from a trial or time study, the number of inspectors and the loaded labor rate. Estimate the defect rate from the original sample, then split defects between scrap and rework. The results show total labor hours, elapsed time with your team, and the cost of sorting, rework and scrap. The chart shows how total cost climbs with defect rate, which helps you plan for a worse case than the sample suggests.

**Bullets:**

- Time a real sort to set the rate.
- Include all suspect stock, not only the rejected sample.
- Use loaded labor, not base wage.
- Test higher defect rates on the chart.

#### The formulas

**Body:** Sorting hours equal suspect quantity divided by the sort rate. Elapsed hours equal sorting hours divided by the number of inspectors. Sorting cost is sorting hours times labor rate. Defects equal quantity times defect percentage. Scrap quantity is defects times scrap share, and the remainder is reworked at the rework minutes per piece and rework rate. Total cost adds sort, rework and scrap cost. These are the visible costs only. Hidden costs such as line disruption, delayed shipments and management time usually push the true figure higher.

#### Reading the result and common mistakes

**Body:** Use the total as an order of magnitude figure for a chargeback request or for the cost of quality report. Compare it with the cost of better detection upstream, such as a receiving inspection plan or a gauge at the machine. The common mistakes are using an optimistic sort rate, ignoring parts already in the customer's hands, and forgetting re-inspection after rework. Remember that sorting finds defects but does not remove the cause, so it should be paired with a corrective action.

**Cta:** If you want cost of poor quality calculated from actual ERP reject, scrap and rework transactions, we can help set that up.

**Faq:**

#### Is 100 percent sorting reliable?

**Answer:** Not fully. Manual visual inspection typically misses some defects, especially on long runs. For critical characteristics use gauging or automated inspection, and consider a second pass. Sorting is a containment step, not a permanent control.

#### Can I charge the supplier for sorting?

**Answer:** Only if your purchase terms or quality agreement allow it. Typical recoverable items include sorting labor, rework, scrap and freight. Keep time records and photos, and agree the rates with procurement before issuing a debit.

#### How do I choose the defect rate input?

**Answer:** Start from the rate found in the inspection sample, then run higher values with the chart, since samples may understate the real rate. If the defect is progressive, such as tool wear, the rest of the lot may be worse.

#### What does this leave out?

**Answer:** It leaves out expedite freight, production stoppage, overtime premiums, administrative effort, customer penalties and lost sales. For a full view, use a cost of quality model that includes prevention, appraisal, internal failure and external failure.

## Search terms

cost of sorting nonconforming parts, containment cost calculator, 100 percent inspection cost, sort cost calculator, cost of poor quality calculator, rework and scrap cost calculator, quality escape cost, supplier chargeback sort cost

---
Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json