Scrap Rate
Scrap rate is the percentage of materials or products that become unusable during production and must be discarded.
Examples:
- Defective products from a poorly maintained machine.
- Wasted materials due to incorrect repairs.
- Substandard parts leading to unusable output.
Calculating Scrap Rate in Maintenance
Basic Formula: (Total Scrap / Total Output) * 100%
Maintenance-Specific "Scrap":
- Damaged or unusable parts removed during repairs.
- Materials wasted due to equipment malfunctions from poor maintenance.
- Products rejected due to quality issues caused by poorly maintained equipment.
Maintenance-Specific "Total Output":
Total units produced, material processed, or other metrics relevant to the asset's operation.
Example Calculation: If 50 out of 1,000 units are defective due to a preventable machine issue, the scrap rate is
(50 / 1000) * 100% = 5%
The Connection Between Maintenance and Scrap
- Equipment Malfunctions: Faulty equipment directly leads to more scrap.
- Inadequate Maintenance: Lack of preventive maintenance worsens equipment issues and increases scrap.
- Beyond Routine Waste: While maintenance generates some waste (e.g., filters), the goal is to minimize overall scrap.
- Calibration and Tooling: Proper calibration and well-maintained tools are vital for preventing defects and reducing scrap.
Why Maintenance Teams Should Track Scrap Rate?
- Identifies Inefficiencies: A high scrap rate can signal problems in production, equipment, or maintenance.
- Cost Management: High scrap increases costs through wasted materials, labor, and energy . Tracking helps identify and reduce these losses.
- Drives Improvement: Analyzing scrap reasons helps refine maintenance, optimize equipment, and improve material quality.
- Benchmarking: Tracking over time allows comparison against past performance, industry standards, or internal benchmarks.
How Cryotos CMMS Assists with Scrap Rate Management?
- Centralized Data: Cryotos stores data on scrap quantity, reasons, affected equipment, and related maintenance.
- Linking Scrap to Maintenance: Users can connect scrap events to work orders, tasks, and failure codes . This helps identify maintenance-related causes.
- Asset History: Tracking scrap history for each asset reveals recurring issues and the need for specific interventions.
- Reporting and Analytics: Cryotos offers reports on scrap trends, top contributing assets/failures, and the impact of maintenance on scrap rates.
Conclusion
Scrap rate is a vital KPI for maintenance. Cryotos Computerized Maintenance Management System (CMMS) provides the tools to effectively track, link, and analyze scrap data with maintenance activities. By utilizing its features, organizations can gain valuable insights to optimize maintenance, improve asset reliability, minimize waste, and achieve significant cost savings.