Overview
Scrap Factor is used to indicate how much Component Scrap is produced when the Parent Item is manufactured or subcontracted. The system first calculates the Component’s Standard Quantity Required by first adding the Component Quantity and the Setup Quantity (if used) together. It then uses the Scrap Factor to determine how much of that total quantity will be lost as scrap in order to determine the total Component Quantity required to meet the actual demand.
Application
EXAMPLE The Quantity Required to build 1 Parent Item is 1 but 2 additional Parent Items are needed for the initial setup. The Scrap Factor is .05, so 5% of whatever is issued of this Component will be lost to scrap. If a Work Order is created for 10 Parent Items, the system will calculate 10 of the Components required based on the Bill of Material Quantity Per, plus 2 more for setup, for a total of 12. However, 5% of what is issued will be lost to scrap, based on the .05 Scrap Factor. In order to meet the Work Order requirement for this Component, a total of 13 will need to be issued, 5% of which will become scrap.
Setup
Navigation
Routing Operation > Modifiers Tab
Scrap Factor: This number will represent the amount of scrap expected during this operation.
SEE ALSO
