Table of Contents

Scrap

Monitor scrap rate and scrap costs - a key margin driver - down to the operation level.

Scrap report

Monitoring scrap rate and scrap costs is essential, as high scrap increases production costs and thus lowers margins or forces higher sales prices, which may lead to competitive issues. Scrap costs are calculated on an operations level and result from two factors: component scrap costs (costs for discarded materials) and capacity scrap costs (costs for labor and/or machinery used to produce a certain product). Scrap unit costs increase by task, as each task adds value to the product. All details can be analyzed using interactive filtering to identify the main drivers.

At a glance

Generated from the report definition (Ausschuss / Ausschuss).

  • Key visuals: 2× bar chart, 2× table

What this report helps you do

  • Monitor scrap rate and scrap costs and their impact on margin
  • Separate component scrap costs from capacity scrap costs
  • Understand how scrap unit costs increase along the routing
  • Identify the main scrap drivers by operation, work center, order and reason

Visuals on this page

Scrap by operation / work center / order

Scrap quantity and cost broken down for interactive analysis.

Scrap by reason

Scrap grouped by reason code to reveal the dominant causes.

Typical use cases

  • Margin protection — Reduce the scrap that erodes production margins.
  • Root-cause analysis — Drill into operations, work centers and reasons to find the main scrap drivers.
  • Scrap Rate (%)
  • Scrap Costs
  • Comp. Scrap Costs
  • Opr. Scrap Costs
  • Scrap UnitCosts
  • Scrap Quantity

See the full KPI & measure catalog for definitions and formats.

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