Corrosion Cost Calculator

Descriptions	Code	Your Estimates	Comment
Number of your products shipped per year	A		Units
Your average cost of producing each product	B		Currency
Percentage of products rejected by shipment receiver due to corrosion or related quality failures	C		(%)
Percentage of rejected products you are unable to salvage and need to scrap	D		(%)
Cost of reworking each product	E	Currency	Some companies have found this to be more than 30% of product cost when all the direct costs are taken into consideration.


Totals
Direct cost of corrosion per year (subtotal)	F		F = (A x B x C x D) + [A x C x (1-D) x E]
Indirect cost of corrosion per year, maintenance of additional inventory, lost freight, warehousing, repacking and handling, production halts, air freight charges, personnel, etc.	G		Some companies have found this to be more than 15% of the direct cost of corrosion calculated above. G = F x 0.15
Your total direct and indirect cost of corrosion per year	H		H = F + G
Your total direct and indirect cost of corrosion per day	I		I = H ÷ 255