Rejection Rate Calculator
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Understanding the Rejection Rate Calculation
In manufacturing, quality control, and human resources, the rejection rate is a critical KPI (Key Performance Indicator). It measures the efficiency and quality of a process by determining the percentage of items or applications that fail to meet specified standards or criteria.
How to Calculate Rejection Rate
The math behind rejection rates is straightforward. You divide the number of rejected items by the total number of items produced or processed, then multiply by 100 to get the percentage.
Practical Examples
- Manufacturing: A factory produces 5,000 widgets. During quality inspection, 150 widgets are found defective. The rejection rate is (150 / 5,000) × 100 = 3%.
- Recruiting: A company receives 200 job applications for a software engineer role. They reject 180 of them after the initial screening. The rejection rate is (180 / 200) × 100 = 90%.
- Software Testing: A QA team runs 400 test cases and 12 fail. The failure (rejection) rate is (12 / 400) × 100 = 3%.
Why Rejection Rates Matter
Monitoring your rejection rate helps identify systematic failures in a production line or screening process. A rising rejection rate usually indicates:
- Equipment Wear: In manufacturing, machines may need calibration.
- Substandard Materials: Raw materials might be of lower quality than previous batches.
- Training Gaps: Personnel may require additional training to meet quality standards.
- Process Bottlenecks: Identifying where the "rejection" happens helps optimize the workflow.
Rejection Rate vs. Yield Rate
The rejection rate is the inverse of the Acceptance Rate (often called the Yield Rate in manufacturing). If your rejection rate is 4%, your acceptance rate is automatically 96%. High-performing organizations strive to keep rejection rates as low as possible to minimize waste and maximize profitability.