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Scrap rate

Concept

The share of produced units that cannot be sold or reworked and are discarded. It is a basic quality measure and also part of the quality factor in OEE.

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Title graphic: Scrap rate (Concept)

Description

The scrap rate is the share of produced units that are discarded because they cannot be sold or reworked. It is calculated as scrapped units divided by total units produced, usually per product, line or shift. It shows the material, time and energy that went into parts that earn nothing.

Scrap should be told apart from rework, where a part is repaired and sold, and from the yield of a process, which looks at good output compared with input. Scrap is also the quality factor in OEE. To lower it, teams record the reasons for each scrapped part and use methods such as root cause analysis, poka-yoke and standard work. The first step is reliable counting, because many plants underestimate scrap that is thrown away without being logged.

TypeConcept
Also known asAusschussquote, Scrap, Ausschuss, Reject rate

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Episodes about Scrap rate

Edge vs. Cloud in Manufacturing- Why the Wrong…

2026-10-22 · Video on YouTube

When a production line halts mid-shift, the real cost isn't just measured on a cloud billing dashboard. It manifests as physical scrap, operators standing idle at a stopped station, and networks flooded with unneeded data. Most cloud-first projects fail…

Articles about Scrap rate (2)

Frequently asked questions

What does a delay cost on a production line?

A delay creates scrap, holds people at a stopped line and fills networks with unneeded data. In the episode's example, an operator sees a fault at the station while the cloud dashboard still shows green, because the event waits on a network trip and a message back down. · From the episode: Edge vs. Cloud in Manufacturing- Why the Wrong…

Scrap rateiFAKT GmbHRelated toOverall equipment e…Related toPoka-yokeRelated to8 wastes of leanRelated toStandard workRelated toPolaris AnalyzerRelated to
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Maintained by Mirko Peters (Microsoft MVP) · Last updated: