Scrap Cost Reduction and Prevention

Production inefficiency can come from just about anywhere - parts from a supplier that don’t fit into finished assembly, a physical prototype once used and then discarded, or even worse a delivered product that doesn’t meet customer requirements. In each case, the scrap – along with the rework – costs time, money, and possibly your reputation. With the pressure of today’s just-in-time cycles, manufacturing errors and inefficiencies can become greatly magnified and eat profit margins.

Scrap Cost Reduction and Prevention (SCRAP) Program

The SCRAP program from MMTC teaches participants how to identify the real causes of scrap and rework whether internally or externally (supplier) based. We help analyze and validate production data, assign costs, identify root causes, formulate an action plan and ultimately recapture lost money.

The pace of the SCRAP Program is based on individual company needs, typically involving a sequence of six onsite instructional and mentoring engagements with MMTC subject matter experts over ten weeks.

Target participants ideally include companies with an annual Scrap/Rework cost of $100K or more, actively engaged with LEAN manufacturing principles and registered to a formal Quality Management System (i.e., ISO 9001, TS 16949).

	Review with management existing scrap and rework data Conduct operational assessment (shop tour and discussion with machine/process operators) Verify what is being currently measured and how Identify potential savings opportunities
	Train team members in principles and applications of Root Cause Analysis (RCA): RCA is the study the origins of non-conformance within a process or product. Once identified, solutions to remove or correct the non-conformance can be implemented RCA is delivered in a structured format at your facility. A variety of tools are covered including brainstorming, Ishikawa (Fishbone) diagrams, affinity diagrams, 5 whys, scatter diagrams, histograms and Pareto analysis Includes training and materials for up to five team members
	MMTC instructors work with team members to determine a pilot improvement area Detailed review of data from the initial assessment line by line RCA tools application within the pilot area
	Narrow focus to high dollar ROI Determine potential solution(s) Identify resources needed (i.e., gages, Poka-Yoke devices) Assign responsibility for resource procurement
	Implement solution(s) in pilot area using secured resources Replicate and extend to similar areas Apply sustainability controls through error-proofing devices to maintain the gain
	Determine effectiveness through measurement and team discussion Review performance metrics Measure impact with report out documentation Occurs approximately 6 weeks after day 5

For more information about MMTC's Scrap Cost Reduction and Prevention program, contact us at 888-414-6682 or via email at inquiry@mmtc.org.