Scrap is a term you’ll frequently hear in the manufacturing industry. Manufacturing companies of all shapes and sizes pay close attention to their scrap rate, as this directly affects their profits. So, what is scrap is how is it used in the manufacturing industry?
Scrap Explained
In the most basic sense, scrap is the discarded unusable material from a manufacturing job. Scrap can be caused by a variety of factors including poor quality control, inefficient processes, and poor training. Reducing manufacturing scrap will save money in the short term and increase efficiency over time leading to even more saved money.
Scrap may also consist of small and otherwise insignificant materials, assuming those materials are leftover and not needed. Metal shavings, for instance, are considered scrap. A couple metal shavings isn’t going to place a financial strain on your business. Over time, though, those shavings can add up, costing your business big bucks.
A high scrap rate can negatively affect manufacturing companies in several ways. For starters, it costs money to purchase the scrap materials — money that’s not recouped on the manufacturing and/or selling of the product. Furthermore, companies must spend additional time, labor and energy dealing with scrap. Whether the company plans to reuse the excess materials, sell it, recycle it, etc., all of these tasks are laborious and time-consuming.
Reducing Scrap in Manufacturing
Of course, it’s next-to-impossible to avoid all forms of scrap in the manufacturing industry. Many manufacturing companies view scrap as an inevitable part of running their business. If you work in a job that requires to build things, you’ll probably have leftover materials — it’s just something that comes with the territory. With that said, there are ways to reduce scrap in manufacturing.
A crucial part of reducing scrap during manufacturing is implementing and sticking to strict quality control measures. Having quality control measures at each stage of manufacturing is critical to reducing scrap this can include, inspecting your material before production, ensuring the machinery is properly calibrated and your employees are adequately trained of the machinery. Tracking and documenting all of your production data is just as important as optimizing your manufacturing processes. Without tracking your processes, you won’t know exactly how much money you’re saving from your new optimizations.
To recap, scrap is essentially the amount of material that’s leftover and unused after a manufacturing job. Manufacturing companies should constantly strive for a low scrap rate
To recap, scrap is essentially the amount of material that’s leftover and unused after a manufacturing job. Manufacturing companies should constantly strive for a low scrap rate as a low scrap rate directly correlates with higher profit margins.
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