Scrap Rate Due to Errors
Definition: The number of units produced over a certain period of time that must be scrapped because of product defects or errors divided by the total number of units produced by the manufacturing group over the same period of time, as a percentage.
Discussion: The Scrap Rate Due to Errors key performance indicator (KPI) measures the percentage of products that are scrapped, or thrown away, due to defects or errors. Typically, you want this value to be as low as possible, which indicates an efficient manufacturing setup with high-quality parts and input materials. A high, or lagging, scrap rate could be an indication of low-quality inputs or defects within the manufacturing process itself. Look to improve protocols related to the front-end quality check of input materials, analyze machine effectiveness (age, mean time between failures, etc.) and examine assembly line staff practices to move towards a leading value for this KPI.