Escaped Defect Containment Cost Calculator (Incoming, In-Process, Customer)
A nonconformance costs more the later you find it. This calculator sends a yearly defect count through incoming inspection, in-process inspection and the customer, and prices each outcome. It is useful for justifying inspection, supplier development or error-proofing effort.
Your numbers
NCR time, return to vendor, replacement chase.
Scrapped labour, rework, schedule disruption, MRB time.
SCAR, containment, field retrofit, rework, lost schedule.
Your results
Illustrative model with three detection points. Replace the default unit costs with figures from your own cost-of-quality records.
Annual cost vs incoming detection rate
Sweeps Caught at incoming inspection from 0 to 100, holding your other inputs fixed.
Cost of quality from ERP data
Optional: we can review how NCR and scrap data could feed a live cost-of-poor-quality report.
Optional. The tool and every export work without this. No spam.
How to use it
Enter the defects you expect per year, the detection rate at incoming and in process, and the cost per part at each point. The model applies incoming detection first, then process detection to what remains, and treats the rest as escapes. Drag the incoming detection slider to see the cost curve; the chart sweeps it from zero to one hundred percent.
- Use real NCR and SCAR counts to set the defect volume.
- Include overhead time, not only scrapped material.
- Run a before and after case to size an improvement project.
Why detection rate matters
Cost per part rises by roughly an order of magnitude at each stage, so a small gain in incoming detection removes a large number of expensive downstream events. If 400 defects arrive and 70% are caught at incoming, 120 reach the floor; at 80% in-process detection, 24 escape. Raising incoming detection from 70% to 85% cuts escapes by half.
Limits of the model
Detection is never independent: the parts that slip through incoming are often the ones hardest to spot later. Escape costs also have a long tail, including loss of preferred supplier status. Use the tool for direction and ranking of options, not for a financial forecast.
Frequently Asked Questions
What is an escaped defect?
A nonconforming part that leaves your control and reaches the customer. In AS9100 terms it usually triggers a customer notification, root cause analysis and corrective action, and in some cases a regulatory report.
What escape cost should I use?
Use your own history of SCARs and returns, including containment labour, travel, rework and any penalty. For critical flight hardware it can be far higher than the default shown here.
Is inspection the best fix?
Not always. Inspection finds defects but does not stop them. Error-proofing and supplier process control reduce defect volume, which this model shows by lowering the defects input.
How does this link to cost of quality?
Incoming and in-process costs are internal failure cost, escapes are external failure cost. Add appraisal and prevention cost for a full PAF cost-of-quality view.
If NCR, scrap and customer complaint data are scattered across systems, we can help bring them into a single cost-of-quality view from your ERP.
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