What is it?

The percentage of produced units that are defective and have to be “scrapped”.

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How can you help?

Try not to handle delicate parts manually

• Use the right metal forming tool for the job
• Stay current on training
• Improve change management and communication
• Document everything

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Why is this important?

Any process that creates scrap or waste can affect productivity, costs and resources. Scrap waste can increase the cost of purchasing raw materials and manufacturing finished products. 

Lower scrap rates mean:

• Lower costs
• Increased profits
• Increased EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) 

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How is it measured?

We measure scrap rate by department and set our goals by percentage of sales.

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