Exact Globe+

Scrap and waste, what is the difference?

Project Training

Introduction

A goal of lean manufacturing and Just-in-Time is said to be the accomplishment by a manufacturing process in which waste and wasteful practices have been eliminated. A prime example of waste put forward by exponents of lean manufacturing and JIT is "inventory". Examples of wasteful inventory include WIP created due to the manufacturing of production lots in excess of net requirements; and the production of non-conforming items. Wasteful activities are said to be those adding "no value" to the customer's enjoyment of the product, and include waiting time incurred by operators; the inefficient movement and transport of materials, perhaps due to poor plant layout; and process and machining activities originating in poor process and product design.

Waste in Exact Globe 2003 Enterprise

In Exact Globe 2003 Enterprise you can define a waste percentage in the BOM of the finished good. Waste can be defined per item line and is defined as a percentage of the total requirement of that specific item for this BOM. For a more detailed explanation about the waste functionality, we would like to refer to document: Waste explained, document 11.806.545.

Scrap in Exact Globe 2003 Enterprise

As from batch 360 we also have a scrap functionality in our software. Scrap is not defined in your BOM but can be triggered in the production process by pressing the 'scrap' button in the production order entry screen or by pressing the scrap button in menu path: [Manufacturing / Entries / Receipts Production]. When you press this button you will be able to enter a quantity for the raw materials that you wish to define as scrap. In the production order entry screen the scrap button will only become active after you have issued raw materials. In the entry screen for production receipts this button will only become active after you have issued raw materials and you do not enable the view to show 'Parent project' but the view to show 'All'. For a more detailed explanation about the scrap functionality, we would like to refer to document: Scrap explained, document 11.806.535.

The difference between scrap and waste

Reviewing these summaries you could conclude that the difference between scrap and waste is that scrap is an unforeseen loss of raw material in your production process and waste is a foreseen and calculated percentage of loss of raw materials or/and time in your production process. In short: scrap you do not plan and waste you do plan in advance.