4) Scrap is money, so always measure it as such. Its easy to overlook the importance of proper documentation when youre busy running a manufacturing business. hb```:.~g`0p``cX|{]000~sOZ~de@N`3CxxW6mPT2U"po`y+4#Mf@Z ump sme kaizen qc implementation approach manufacturing industry tools using One way companies can save time and money is by preventing scrap and rework. Our monthly enewsletter provides insights from Delta ModTech and industry experts. Remember you cannot improve what you do not measure.

For starters, it costs money to purchase the scrap materials money thats not recouped on the manufacturing and/or selling of the product. Short description:the cost of scrap for each tool this month vs. the percentage from the total intake, Who uses it(importance): higher management (Low), factory management (High), unit management(Med). Love it, busy implementing our Scrap Procedure & Policy & this assisted a great deal. For a better experience, please enable JavaScript in your browser before proceeding. And while no one, especially an operations manager, wants to admit it, these expenses add up quickly and negatively impact the bottom line. Perhaps using a machine or equipment to perform a step in the manufacturing process can reduce unnecessary material waste. According to Mark Cheatham, Vice President of Engineering at Strouse, The real challenge is getting the product development team to understand the end goal. The earlier the product development team is involved in the design, the faster they can point out troublesome production elements. 7.e`xQ` "# Note: this graph can also be very effective if we use accumulated 6 months data. mineral dragonboard magnesite magnesium could earth climate slow change down carbon getty co2 scientists oxide sucking help warming silica global The % of kg tells us how serious is the problem. So go work on eliminating the scrap, not on making the waste management and recycling companies richer, while yours gets poorer. Quality Assurance and Business Systems Related Topics. For more details, check out our post , 8 Ways to Make Scrap Removal More Efficient During the Rotary Die-Cutting Process, , including details on what should be included in your bill of materials. As materials become increasingly more sophisticated and multi-functional, the cost of scrap rises as well. Currently you have JavaScript disabled. It costs money to purchase the raw materials that become a finished product. Check out MAMTCs Lean solutions here. To recap, scrap is essentially the amount of material thats leftover and unused after a manufacturing job. But are there some fundamental, surefire ways to reduce scrap? If that sounds good to you, lets talk. In addition to product drawings, it is important that manufacturerscreate and maintain a BOM for each product. ump sme kaizen qc implementation approach manufacturing industry tools using Scrap - 8.3 Requirements, Records and Data - Quality, Legal and Other Evidence, Scrap rate in the iron foundry casting industry, Scrap Trader Kidnapped? The impact of scrap on any operation is wide-ranging, but with the escalating costs of materials, even the slightest improvements can lead to significant results. Here are nine suggestions: Mike Lynch, Founder and President of CNC Concepts, notes that most of what causes scrap workpieces can be traced to human error. Not surprisingly, these issues are typically tied to training. You must log in or register to reply here. They expect that when the scrap is eventually reduced, the price will be maintained and the contribution margin and the profits will then be even higher. 2022 DeltaModTech Although it is near-impossible to eliminate scrap and rework completely, you can reduce the amount of scrap and rework in your organization by optimizing the way you document product data, review manufacturing processes, and communicate manufacturing and engineering changes throughout your supply chain. And the risk of human error occuring in the handling of these parts heightens the chance of nicks, scratches or defects. Any reliance you place on such information is therefore strictly at your own risk. So, what is scrap is how is it used in the manufacturing industry? When your manufacturing processes have been captured, reviewed, and approved via a controlled documentation and release process, the risk of scrap and rework is greatly reduced. Damaged, ill-fitting or poorly-made fixtures and jigs are a common cause of scrap in a manufacturing organization, but with proper documentation and evaluation, these tools can be optimized to improve product quality and reduce scrap. , points out that by reducing the total number of physical prototypes, it can also reduce your production point., Mark Cheatham, Vice President of Engineering at Strouse. As weve noted in this post on knowledge sharing, easier sharing of information and processes can impact line performance and reduce downtown. Should you have questions, let me know, Thanks. Its excess material thats not required to manufacture the car. The environmental footprint reduction pressure can lead you into the deception that finding cool creative ways to sell your scrap to recyclers is great. This "insurance policy" not only makes scrap become invisible, worse still, it makes it look acceptable to people, so why should they work on eliminating it, if someone else is already paying for it?. Scrap and rework costs are caused by many thingswhen the wrong parts are ordered, when engineering changes arent effectively communicated or when designs arent properly executed on the manufacturing line.No matter why scrap and rework occurs, its impact on an organization is always the samewasted time and money. For more details, check out our post 8 Ways to Make Scrap Removal More Efficient During the Rotary Die-Cutting Process.. To view or add a comment, sign in. As you work to continually improve your manufacturing process and reduce scrap, youre going to be making changes. This can be especially effective with sacrificial liners. The Planning master-For industrial engineer, This site is all about planning in an organization. The cost perspective allows us to give different prices to scrap at different stages. ). Mast Scrap Advisors has many other secrets that can help you develop a scrap management program allowing you to recoup material expenses, increase operational efficiency and employee productivity, and mitigate risk associated with scrap management. Your standard process may include removing scraps by hand. At Delta ModTech, many of our machines complex converting processes are handled by software applications. You should not have incurred in it in the first place, but you have now managed to spend excess manufacturing overheads. The stacks require a light diffusion film, and the entire stack has extremely tight tolerances. 171 0 obj <> endobj Short description: scrap per tool current month (one graph for each scrap category), Who uses it(importance): higher management (Low), factory management (Med), unit management(High). Item, Document, and File Management. In most cases the owner will look for reducing one type of scrap at a time. Scrap Material Scale Calibration Required? Short description: comparing the monthly average percentage of scrap in terms of cost vs. quantity. Part of the documentation requires an improved bill of materials (BOM) that is both accurate and up to date. IATF 16949 - Automotive Quality Systems Standard. MAST founder, Elizabeth Muoz-Lebaron, likes to say that she has molten metal running through her veins. As a student for logistics management, I have learned a lot from this piece. Or are they introducing errors on the manufacturing line? Short description:the % of scrap from all input materials. Well, this assumes you are measuring and tracking your scrap and that you are doing it accurately. A high scrap rate can negatively affect manufacturing companies in several ways. Documenting those changes is half the game; you also need to communicate them quickly to all stakeholders. Required fields are marked *. Of course, the ultimate hands-off approach is to use a laser-die cutting machine. Money talks, so talk money whenever you talk scrap. 5 Reasons You Need a Closed-Loop Vision System (and a Few Why You Dont), Your email address will not be published. An output measure tells you if you reached the goal or not, whereas the in-process measure tells you if you are on the right path to reach the goal. JavaScript is disabled. If priority is given to evaluating and improving your manufacturing processes, it becomes much easier to reduce the amount of scrap and rework in your organization. Unless you are in the money laundry business, you don't just buy materials to later sell them at a loss, or do you? All enabled users can suggest changes electronically, and can be informed automatically when changes are suggested and implemented.

They do it to make it look less bad, or because they are trying to isolate the so-called operating scrap, which is the most usual suspect. Scrap usually costs money andtime. Click here for instructions on how to enable JavaScript in your browser. If you are outsourcing manufacturing activities to a third-party like a contract manufacturer (CM), product documentation becomes even more important. In that case every small change that we will make will reduce the cost of scrap. , easier sharing of information and processes can impact line performance and reduce downtown. Many times you can find materials that have the same performance properties as those on your current process but cost much less or can be rewound and reused (check out. Rochester Hills, MI 48309. 14425 College Blvd,Suite 120, Lenexa, KS 66215, 0 Effective Cost-Savings Tips for Manufacturers, Robert Rogers, President, Mid-State Aerospace. Purge scrap, quality check scrap, yield scrap, warehouse damage scrap, trim scrap, operating scrapdoes it really matter how you call it? Cost of Poor Quality (CoPQ) - Scrap element of calculation includes lost margin? Unregistered Bulk Scrap Metal Suppliers - Do they need to be ISO 9001 certified? You will do it and it might earn you some congratulations from the sustainability guys, but it does not make the scrap itself go away. Right? The information is provided by Monroe Engineering, LLC, Inc. (Monroe) and while we endeavour to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Why not? However, tool 16, 17, 5, and 6 can easily be reduced to 50% of their scrap which will also contribute to cost reduction. Of course, prioritizing reduction efforts is important (after all, youhave limited resources), but you do not create a culture of zero losses by feeding a myth that operating scrap is at the center of everything while others are acceptable or can be dealt with later. But this $ figure is actually more useful when you discuss it with the actual people doing the work on the ground, to motivate them for real. In other words, the in-process measure tells you if the job is getting done or not. One of her top priorities is to help clients to embrace the revenue potential of their by-products and design recycling programs that achieve higher value. In this case we should first look to improve tools that run more expensive materials. Inevitably you will be faced with non-cancelable non-conforming materials (NCMR) resulting in scrap. In addition to documenting product data, manufacturers can help reduce scrap and rework by carefully and consistently monitoring how products are made. Lucky for you, all people relate really well to money, so when you put the scrap loss in tangible $ terms such as: "oops, there goes the next Christmas party we wont be able to afford", or "With this scrap, I don't think this year's salary raise will happen, so better cancel those vacation plans", they will get it. As USA Marlin notes, a well-trained team will make smarter use of resources, and not have to go through nearly as many trial and error experiences to find out what does and does not work.. Description: The following graph is used for the tool owners and for any cost reduction process manager. Short description:the percentage of scrap generated by each process stage. For more information, please see ourprivacy policy. The KPIshows the actual costof scrap that the factory needs to deal with. You may need to provide the CM with a manufacturing build package, like a PDX file, which contains product data including CAD drawings, datasheets, work instructions, BOM records, and change details. Even if it means a trip overseas to walk the CMs manufacturing floor, understanding your process and how its being implemented on the manufacturing line is the best way to find areas for improvement and prevent scrap and rework expenses from creeping up. I am so glad to read that. Study of Scrap on one of our production lines - What to use? When people cannot find the latest SOPs, they often work from outdated versions, which leads to little mistakes, as well as major quality and manufacturing issues that ultimately require rework or result in scrap. Because so many business decisions, like part-ordering, can be driven from a BOM, it is crucial that the information contained within a BOM is accurate and up-to-date. One of the easiest ways to minimize scrap is to optimize your manufacturing process. 2) Scrap is just scrap no matter how you name it or sub-classify it. Manufacturers expend a lot of additional resources to deal with scrap: Labor costs, storage costs, transportation costs, lost time. In a market defined by frequent product changes and the growing pressure to innovate, effective change management processes and methods are key to preventing scrap and rework. That may eventually lead to your losing your job as part of desperate cost reduction efforts, because cutting heads is simply easier and faster than cutting scrap. Pull handles are an essential component of many types of furniture.

Imagine a scenario where a significant engineering changedesigned to improve the productis released without the manufacturing teams knowledge. Everything is getting smaller and more powerful, said Scott Anderson of Action. This accounts to nothing and it builds neither a sense of urgency nor a zero-loss culture. Weve blogged about the importance of automating changes on the fly. %PDF-1.5 % That is why they need to be constantly under a cost reduction process. Hazardous waste? Mike Lynch, Founder and President of CNC Concepts. With that said, there are ways to reduce scrap in manufacturing. Neglecting to correctly manage this process results in serious waste, yet its a mistake many manufacturers continue to make. If the cost percentage is higher than the quantity (as in the example), we lose more expensive materials which meanswe lose more materials on expensive product batches than on cheaper ones. But if these programs arent operated correctly, and the machines arent used as they were designed, scrap is the natural byproduct. Another variation of this graph can be a show of total scrap cost (without the categories). Opt for flexible cutting plates, and use cranes for the loading and unloading of large rotary dies. Short description: the cost of scrapproduced eachmonth (even if it was recycled later). Because scrap can occur when a change is implemented at the wrong part of the manufacturing process, it is essential that change information is communicated to all key stakeholdersinternal employees as well as the manufacturers supply chain. In both situations, you are making the most of a bad situation. Plastics? Manufacturing companies of all shapes and sizes pay close attention to their scrap rate, as this affects their profits. In doing so, you wont know how many materials are being used and how much is leftover. If your competition is being more aggressive on loss elimination and decides to transfer a little bit of that benefit to the customers via the price, you might be in for a market share loss soon. Elizabeth began buying and selling scrap on her own and held key positions with several recycling companies. Any measure to save is welcome. All in all, an efficient change management process will help limit rework and prevent expensive scrap errors. Description: If we take the scrap cost only as the cost of materials, we will get the same percentage per batch both in quantity and in quality. The reality is that whatever tricks you use, the scrap will still be there in your financial balance sheet, making you look bad. While you may be capturing standard operating procedures (SOPs) and work instructions early on, its important that team members have quick and easy access to the most up-to-date versions of these documents. Its also important to eliminate lag time between making a change decision and communicating it out to stakeholders because, without advanced notice about upcoming changes, its difficult to work together to optimize production. Many times you can find materials that have the same performance properties as those on your current process but cost much less or can be rewound and reused (check out this post on the topic). The quality of your cutting tools has never been more important due to increasingly high tolerances. Not only can paper forms get lost on someones desk but manually passing forms from person to person can be a time-consuming task. Consider these tactics as youre evaluating your overall processes. When reviewing your manufacturing processes, note the fixtures and jigs that are used to build your products. Usually it means that this tool uses more expensive materials or very high volume. Our monthly enewsletter provides insights from Delta ModTech and industry experts. By integrating automated slug removal into the process, you can more efficiently remove scrap from the moving web. You want to minimize the handling of your tooling as much possible. Proper documentation of materials ordered and materials used can also reduce scrap in manufacturing. 2990 Technology Dr This is more of a dynamic list, which moves beyond the initial list created with the CAD drawings. Scrap and rework costs are a manufacturing reality impacting organizations across all industries and product lines. Now you have two choicesyou can finish the commitment as promised and deliver a less competitive product, or you can bite the bullet and aggressively move to add the change to the current release. You can find them on dressers, Plungers are commonly used to position workpieces. Learn How to Improve Your Converting Process Common Quality Assurance Processes and Tools, Quality Manager and Management Related Issues. It is a very important figure since it determines the resources given to improve QA and production. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';fnames[1]='FNAME';ftypes[1]='text';fnames[2]='LNAME';ftypes[2]='text';fnames[3]='ADDRESS';ftypes[3]='address';fnames[4]='PHONE';ftypes[4]='phone';}(jQuery));var $mcj = jQuery.noConflict(true); 4. it is just the cost of doing business, right? When all of these parties communicate more effectively prior to the prototype stage, your risk of failure is greatly reduced. We tapped into the insights of a number of experts in manufacturing and included their thoughts on best practices for reducing scrap. Material planning, production planning, KPI and lean. avakian KMS was able to take a very complex set of opportunities facing Mid-State Aerospace, distill them down to very understandable and prioritized list of actions to grow our business as well as develop a roadmap to address the COVID impacts from both an operational and economic standpoint. So how does that occur? This manual process, particularly when used with rotary dies, can result in a number of issues. 1) Scrap is not the same as waste. Scrap vs. Rework Classification - Scraping the resistor or reworking the PCB board? A scrap management program can help a manufacturer receive the maximum benefit from their scrap. Category: Besides, at times, large scrap sources reside in unusual places of the supply chain where no-one looks because they are too busy looking at the so-called operating scrap. Remember, people do not change, they just behave differently when they are after something of interest to them. If an automaker is manufacturing a car and has steel leftover after finishing the car, that leftover steel is considered scrap. Reducing it can be complicated by your own internal processes, and the nature of the run. . Its critical that all product data be current and correct, so that the product is always built to spec. That will give a clear view of the problem. Yet spotting the small motion mistakes that occur during a run are difficult, as Mike Lynch notes. Quality Objectives Ideas - Currently we have Scrap & rework, OTD, survey results, etc, Recording Scrap - Problems in the Medical Device Manufacturing Sector, How do I set up a PPM with Total pcs shipped vs. Total Scrap for the month, Control Chart to Track Effectiveness of Actions to Reduce Scrap Rate. Your email address will not be published. Many manufacturing companies view scrap, excess raw material that was not needed during the manufacturing process, as an inevitable part of running their business. Very often organizations build material utilization factors into the cost structure of their products, the bill of materials and similar. You want to minimize the handling of your tooling as much possible. Click Here, Headquarters No, you are not doing yourself a favor. Should your businesses ever need any guidance or coaching on the matter, let me know and I'd be happy to hold some sessions or recommend a consultant in you area. The raw material left behind is money left behind. Of course, its next-to-impossible to avoid all forms of scrap in the manufacturing industry. If your process is already underway, you should consider a cost analysis of the current materials youre using. So, just call it one name: scrap, and build it into every department's performance indicators. For example, if we extrude something, then paint and wrap it, we need to give different costs to each step. %%EOF Metal shavings, for instance, are considered scrap. Although documenting changes is the first step, an equally important part of change management is the effective and ongoing communication of change information. Documenting processes is a critical part of reducing scrap. You may also decide it is a great idea to invest your time to create re-work and re-process methods, procedures and policies so that your scrap does not entirely go to waste. The stacks require a light diffusion film, and the entire stack has extremely tight tolerances.

But dont stop there. Design tip sort the tools from high cost to low cost. The scrap per stage cost table will look like the following example: In the above table we can see the stage and in detail how much goes to every scrap type. Scrap cost vs. % of scrap current month. Are these tools performing as needed? The company Poka has seen some companies increase their OEE from 60 to 80%, and others who were already above 85% increase by 5-6%.. 198 0 obj <>stream This operational scrap is then broken down into Paretto charts to launch 6-sigma models and so forth. But to further minimize the risk, manufacturers must also document and optimize the way they manage changes to the manufacturing process. Food Safety in the Heartland - PCQI Training for Animal Food Manufacturers, How to increase employee productivity on the shop floor, How to get money to grow your manufacturing enterprise, 10 Effective Cost-Savings Tips for Manufacturers. Description: A stack bar of all the actual scrap quantity produced each month divided to categories (Bad products, Rework, First material). Scrap Stored Long Term in MRB - ISO 9001 Nonconformance or Annoyance? We can look at the stages in terms of kg/units if it is relevant to all stages, or in terms of cost. thanks!



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