Scrap Rate

Benchmarking Report

Scrap Rate

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Scrap Rate. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.

What is Scrap Rate?

The number of units produced 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.

Why should Scrap Rate be measured?

Scrap Rate measures the quality of the production output of the Manufacturing function. A high value for this KPI likely indicates poor raw materials inputs, careless production setup procedures, faulty machinery or ineffective production operators, all of which will result in increased costs to the company and slow down day-to-day operations. A very high Scrap Rate can also lead to an inability to produce enough finished goods to fulfill customer orders. Scrap Rate can be reduced by increasing training for programmers and operators, documenting product data throughout the process, or utilization of scientific approaches, such as Six Sigma or Multivariate Testing.

Download a Sample Scrap Rate

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