Work out rework cost instantly with clear inputs, formula shown and shareable results.
Rework cost is labour hours at the loaded rate plus any additional material. It is an internal failure cost in the cost-of-quality framework, and because rework consumes bottleneck capacity the opportunity cost is often larger than the direct cost shown here.
Rework labour
Labour = Units x (Minutes / 60) x Loaded hourly rate
Total rework cost
Total = Rework labour + Extra material
Because rework consumes supervision, facilities and benefits, not just the base wage. A loaded rate is typically 1.3-1.6 times base pay.
If the rework happens on a constrained resource, yes — value the displaced production at its contribution margin and add it.