Komtek Cost of Quality Estimate - Scrap compute the cost of scrap for the Zimmer order
			Work Order - 811073 (1025 pieces)
Opr.	Description	Std. Total Cost ($/pc)	Labor Cost ($/pc)	OH Cost ($/pc)	Outside Cost ($/pc)	Total Cost ($/pc)	Scrap (#)	Value if Scrapped ($)	Cumulative Scrap Value ($)
1	Kitup + Die + Material	62.27				62.27		62.27
10	Abrasive Cutting	1.16	0.32	0.83		1.15		63.42
15	Grind Slugs	0.97	0.29	0.70		0.99		64.41
20	Wheelabrate	0.21	0.22			0.22		64.63
30	Coat Slugs	0.59	0.17	0.42		0.59		65.22
40	Extrude	7.07	0.91	7.13		8.05		73.27
50	Wheelabrate	0.21	0.21			0.21		73.48
60	Forge	13.59	1.05	13.74		14.79		88.27
65	Helper	2.55	1.07	2.38		3.45		91.72
80	Alox 90	1.43	0.46	1.38		1.83		93.55
90	Staging for Inspection	0.42		0.44		0.44		93.99
100	Visual	0.97	0.33	0.90		1.24	5	95.23	476.14
103	Parting line sample	1.18	0.28	0.72		1.01	19	96.23	1828.43
105	Deburr	4.83	1.16	3.09		4.25		100.48
110	Hot Coin	0.72	0.93			0.93		101.42
111	Tensile Testing						10	101.42	1014.16
115	Straighten	2.38	1.14	3.40		4.54	65	105.96	6887.11
120	Chem Polish	7.00			7.00	7.00		112.96
130	Cleaning	1.00			1.00	1.00		113.96
140	NDT Facility	4.96	2.72	7.01		9.73	27	123.69	3339.61
150	Quality Control	1.19	0.49	0.92		1.41	17	125.09	2126.61
160	Final Prep	0.58	0.14	0.34		0.48		125.57
	Subtotal Costs	115.27	11.89	43.42	8.00	125.57	143		15672.06
Order Quantity = # Sold =		1025
Scrap + Tensile testing (#) =		143	133 scrap, 10 sent for tensile testing are appraisal costs
Total hips processed =		1168	Note: 1200 were released on to the floor, but not all were processed
Total Unit Cost ($)=		$ 142.08	(1025 units*$125.57 act. cost/piece + 5 tensile tests at $250/test + $15,672.06 scrap)/1025 units
PC Ratio (Goal)		1.33
Target Selling Price =		$ 153.31	1.33 * $115.27 standard cost
Gross margin per piece ($)=		$ 11.22
Actual PC Ratio =		1.08
Appraisal Costs ($/piece)
	Inspection	$ 13.82	Total cost of operations 90, 100, 103,140 and 150
	Testing	$ 2.21	Total cost of tensile test ($1250) plus scrap value (J19) divided by # sold
Internal Failure Costs ($/piece)
	Rework	$ 10.31	Total actual cost per piece minus total standard cost per piece
	Scrap	$ 14.30	Total scrap value minus tensile scrap value divided by # sold
Total Cost of Quality =		$ 40.64	$/piece	we have no data on prevention or external failure costs!
As a % of average actual cost per unit			29%