Scrap

monitoring scrap rate and -costs is essential as a high scrap increases costs for production and thus lower margins or enforces increased sales prices, which might lead to competitive issues.

Scrap costs are being calculated on an operations level and result from two factors:

• component scrap costs: costs for discarded materials
• capacity scrap costs: costs for labor and/or machinery used to produce a certain product

Scrap Unit Costs increases by tasks, as each task adds value to the product. All details can be analyzed using interactive filtering to identify main drivers.