Financial Impact of 1% rejection rate in a typical foundry

Assume that an average foundry manufactures 1000 tonnes of castings every month. The average production cost of 1% rejection rate is €12, 000 per month for ferrous foundry and €30,000 for non-ferrous foundry.

The environmental cost should also not be ignored. 1% rejection rate means 10 tonnes of castings produced every month are rejected. The resulting landfill waste would be around 5 tonnes per month. This is equivalent to the total landfill waste created by one household for a period of five years.

In addition,1% rejected castings i.e. 10 tonnes of castings produce 4 tonnes of CO2 emissions. In other words, the resulting CO2 emissions saved by one foundry in one month is equivalent to CO2 emissions produced by one green car for a period for 4 years.

These costs are not negligible and the subsequent environmental impact should not be ignored.

A green car produces 100gm/km of CO2 emissions. Average annual consumption of 10,000 km gives an annual footprint of 1 tonne per car.