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How Do We Find Out How Much Scrap and Rework Is Costing Our Machine Shop, and Where It Comes From?

CNC scrap and rework go in the bin without being counted, so causes repeat. We build scrap logging at the machine that costs each part and shows the pattern.

Updated 3 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

Scrap goes unmeasured because scrapping a part is quick and recording it is not, so the quarantine bin fills and the cost disappears into material and labour overheads. We build a one tap scrap and rework log at the machine that records the job, operation, reason and quantity, works out the cost of each scrapped part at that stage, and shows which parts, machines and causes account for most of it.

The quarantine bin is full again

There is a red bin by the inspection bench. It fills up with parts: undersized bores, a face with chatter marks, a thread cut too deep, a batch where the fixture slipped. Some get reworked, some get scrapped, some sit there for weeks while someone decides.

At the end of the month, the scrap merchant takes a skip of swarf and scrapped parts. The material cost goes into the general material line. The machine time that made those parts is never counted at all.

Why scrap stays invisible

Scrap is embarrassing, and recording it takes time the operator would rather spend making the good part. Unless it triggers a customer complaint, it tends to go in the bin without a word. Rework is even harder to see, because the part eventually ships.

  • Scrap is not recorded, or is written on the job card without a reason.
  • Parts scrapped at the last operation cost far more than those scrapped at the first, but are counted the same.
  • Rework time is booked to the job as normal running time.
  • Setup pieces and prove out parts are mixed in with genuine scrap.
  • Nobody reviews scrap by cause across jobs.

What you are not seeing

A part scrapped at final operation carries the material, every previous operation's machine time, and the time to make its replacement, which may push the job late. Across a year, repeated causes such as a worn fixture, an unreliable probe or a program that relies on the setter's touch add up to real money that is hidden in your overheads. Without numbers, you cannot justify fixing them.

The scrap and rework log we build

  1. At each machine or cell, a tablet takes a scrap or rework entry in a few taps: scan the job, choose the operation, choose a reason from your list, enter the quantity, and optionally take a photo.
  2. Reasons are yours and short: dimension out, surface finish, damage in handling, material defect, setup piece, program error, fixture movement, and so on.
  3. Each scrapped part is costed at the stage it was scrapped, using material cost and the operations it had already been through, at your machine rates.
  4. Rework is recorded with the time spent, so the job's true cost includes it.
  5. The job's required quantity is checked against good parts, and the planner is warned if a remake is needed to meet the order.
  6. Weekly reports show scrap and rework cost by part number, customer, machine, operation and reason.
Scrapped atCost includes
SawMaterial only
First operationMaterial and first operation time
Second operationMaterial and both operations
After outside processingMaterial, operations and processing charge
Final inspectionEverything above, plus remake time

Setup pieces and prove out parts are recorded separately, so they do not hide genuine scrap and are not counted against the operator.

What the numbers change

For the first time, scrap has a figure you can compare month to month and a list of causes ranked by cost. That list usually points to a few parts and a few causes. Fixing a worn fixture or rewriting one program becomes an easy decision once you can see what it has been costing.

Quotes for parts with a history of scrap can carry an honest allowance, and the planner hears about remakes the same day instead of at dispatch.

Is scrap hiding in your overheads?

  • Nobody knows last month's scrap cost.
  • The quarantine bin fills with undecided parts.
  • Remakes are discovered at dispatch.
  • Rework time is not recorded.
  • The same parts seem to cause trouble every time.

FAQ

Frequently asked questions

The questions readers ask us after this guide.

Still have a question?

Ask us directly — a senior engineer will get back to you.

Ask about your project

Will operators record scrap honestly?

They are more likely to if it takes seconds and is used to fix causes rather than blame people. We recommend agreeing that with the shop floor at the start.

Where do the costs come from?

Your machine rates and material costs, from the quote or your MRP. You can adjust them.

Can it raise a nonconformance report?

Yes. A scrap entry can open an internal NCR for causes your quality procedures say need one.

Do we need tablets at every machine?

One per cell is often enough. What matters is that recording is close to where the scrap is found.

Keep reading

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