COSTS OF REWORK

COSTS OF REWORK
Personnel costs/hour
Hourly wage $12.00
Benefits $3.84
Generic Training $2.86
Specific Training $2.86
Supervision $2.17

SubTotal $23.73

Materials/hour
Equipment
Soldering stations $0.31
FPT equipment and engineering support $13.02
Tips $1.19
Workbench $0.39
Consumables #REF!

SubTotal $14.92

Space cost/hour
Workspace $0.14

SubTotal $0.14

COST PER HOUR TOTAL $38.79

Operator production rate(IC's/hour) 3.0

Cost per component $12.93

Scrap cost
Avg. cost/unit $75.00
Scrap rate 6%
Cost/component $4.69

W/SCRAP COST/COMPONENT $17.62

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 Worksheet

Costs of Performing Internal Rework & Repair

Personnel Costs
WAGES
Enter the hourly wage of your Rework personnel $12.00
Enter the employee benefit percentage/Temp agency percentage 32%
Benefit cost/Temp agency fee $3.84
Total cost per hour for employees wages $15.84

TRAINING
Generic (ISO, Employee benefit, Workmanship, Production flow)
Enter trainer’s salary + benefits $35,000.00
Enter the number of employees trained annually by individual trainer 12
(A) Trainer’s cost per employee $2,916.67
Enter the number of training hours expected annually 40
(B) Employee pay during training $633.60
Enter the employer’s expected rate of return 2.5
(C) Loss of production $1,200.00
Enter the square feet of training area used for generic training 800
Enter the annual cost per square foot of manufacturing space $11.00
(D) Cost of space $733.33
Total cost per hour for generic training $2.86

Specific (Soldering, Recertification, Board-level-repair)

Enter trainer’s salary + benefits $35,000.00
Enter the number of employees trained annually by individual trainer 12
(A) Trainer’s cost per employee $2,916.67
Enter the number of training hours expected annually 40
(B) Employee pay during training $633.60
Enter the employer’s expected rate of return 2.5
(C) Loss of production $1,200.00
Enter square feet of training area 800
Enter cost per square foot $11.00
(D) Cost of space $733.33
Enter the cost of demonstration equipment $0.00
Enter the cost of student equipment $0.00
Enter the cost of workbenches $0.00
Enter the cost of supplies (tips,workbooks,solder,etc...) $200.00
Enter the estimated years to replacement 5.0
(E) Equipment cost $16.67
Total cost per hour for specific training $2.86

SUPERVISION
Enter annual salary + benefits for supervisor $50,000.00
Enter number of personnel supervised 12
Total cost per hour for supervision $2.17
Total Cost Per Hour for Personnel $23.73
 Worksheet

Equipment And Supplies

Enter the equipment cost of one solder station $3,000.00
Enter the number of years until replacement 5
Total cost per hour for one soldering station $0.31
Enter the cost of top four soldering tips replaced #1 $20.00
#2 $35.00
#3 $48.00
#4 $18.50
Enter the average tip life expectancy in hours 200
Enter annual costs of soldering station replacement parts(other than tips) $2,000.00
Total cost per hour for soldering tips and replacement parts $1.19
Enter the cost of high-end rework equipment $65,000.00
Enter the number of years until replacement 5.0
Enter the number of engineers supporting rework program 1
Enter the average salary of engineer's supporting rework program $60,000.00
Enter the percentage of time spent supporting rework program 20%
Total cost per hour for high-end rework and support $13.02
Enter the average workbench cost $1,500.00
Enter the average workbench life expectancy in years 10
Enter the hourly cost of consumables (solder wick, flux, wire solder) $0.40
Enter the workbench ESD cost annually $600.00
Total cost per hour for workbench $0.39
Total Cost Per Hour For Equipment & Supplies $14.92

Space Cost
Enter the square feet per workspace 25
Enter the annual cost of manufacturing space per square foot $11.00
Total Cost Per Hour For Space $0.14

TOTAL HOURLY COST OF REWORK $38.79

Enter the average number of IC’s one operator can complete in one hour 3.00
Cost per component reworked $12.93

SCRAP COSTS
Enter the average production cost of PCB’s manufactured $75.00
Enter the number of units scrapped during rework (1 week) 25
Enter the number of units reworked (1 week) 400
Scrap rate 6.25%
Scrap costs per component reworked $4.69

TOTAL COST PER COMPONENT REWORKED $17.62