Calculating the scrap rate on your manufacturing floor is a key performance indicator in determining how to improve quality assurance, optimize material use and assess costs for your operational budget.
Using the formula: Scrap rate = (number of scrap items ÷ total completed items) X 100
shows the number of products companies produce that become waste due to defects or human errors. This number indicates a need to find ways to improve. Scrap rates and costs are higher for manufacturers making custom, discrete products and are vital to the success of a maker. Here are 3 ways to reduce your scrap rate:shows the number of products companies produce that become waste due to defects or human errors. This number indicates a need to find ways to improve. Scrap rates and costs are higher for manufacturers making custom, discrete products and are vital to the success of a maker. Here are 3 ways to reduce your scrap rate:
1. Document Everything
Bill of Materials (BOMs), CAD drawings, and standard operating procedures (SOPs) should all be documented and filed digitally ensuring no one creates scrap by referencing older documents. Aligning BOMs & CAD drawings means any changes are seen across the organization. Sales reps and dealers should have access to a suite of documents for one source of information.
2. Update Your Manufacturing Process
The most effective manufacturing phase in terms of potential scrap is the design phase. Communication and collaboration between engineers, sales representatives, and the production team member should be supported with the use of onsite and digital software. Ensure you are using the right tools, right techniques, and right materials when updating the manufacturing process.
3. Minimize Human Error
Don’t shy away from using automation to limit handling and order entry mistakes. Custom products often take hours to configure properly and create excessive waste if not done so correctly. Scrap causing mistakes made by sales reps and dealers are a signal that your company needs to simplify the ordering process. Using a product configurator or Configure, Price, Quote (CPQ) application, representatives can use rules-based, guided selling, to make an accurate configuration and order instantly.
Looking to improve your scrap rate? Contact the configurator experts: