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8/2/2019 Scrap Calculation
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Scrap calculation --
Content
1. Scrap
2. Types of Scrap
3. Assembly Scrap
4. Component Scrap
5. Operation Scrap
6. Scrap Calculation
Scrap
Non-conforming material that cannot be reworked or used and has no value except for itsmaterial content.
Types of Scrap
The following are the various scraps that are maintained
1. Assembly Scrap
2. Component Scrap
3. Operation Scrap
Assembly Scrap
Percentage scrap that occurs during production of the material if the material is an
assembly.
Takes into account all faults that occur when the individual components of an assembly
are assembled (in production). Maintained in the Material Master - MRP 1 View as percentage
Assembly scrap is used in materials planning to calculate the lot size of the assembly.
The system increases the quantity to be produced by the scrap quantity calculated.
Dependency:
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The system increases the quantity to be produced for all of the assembly's components
accordingly.
Assembly Scrap-MRP1 View
Assembly Scrap Calculation
Let the material master record of header material FERT contains an 10% of assemblyscrap. The subordinate component ROH quantity will be calculated as below to include
the scrap.
The resulting component quantities for ROH is calculated for 1,100 pieces of assembly FERT.
Component Scrap
Percentage of scrap that occurs during production of the material if the material is a
component. It takes into account all faults that occur before the component is put into an
assembly (material provision scrap). Applies only to one component
Component scrap can be maintained
- In the BOM on the Item detail screen: basic data under Quantity data. This component scrap isonly relevant to the individual BOM.
- In the material master record on the MRP 4 screen under Requirements explosion. If the same
component scrap applies to a material in a number of BOMs, then it can be maintained in the
material master record.
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Component scrap is used in material requirements planning (MRP) to determine the
quantities of components required. When exploding the bill of material (BOM), the
system increases the required quantities of the components by the calculated scrapquantity
Component Scrap - Dependencies
Component scrap maintained for a material component in a BOM overrides the
component scrap maintained in the material master record.
If there is also assembly scrap for a higher-level assembly, the system adds together the
two types of scrap
BOM Item detail screen: Basic data
If the component scrap is only relevant to the individual BOM, then it can be maintained
in the BOM Item detail screen
Component Scrap - MRP4 View
If the same component scrap applies to a material in a number of BOMs, then it can be
maintained in the material master record.
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Component Scrap Calculation
If a component scrap of 10% is maintained for the material component ROH in the BOM, then
the component quantity will be calculated to include the scrap as below.
Component Scrap & Assembly Scrap
Assembly scrap of 10% is maintained in the material master record of assembly FERT.
In BOM, component scrap of 10% is maintained for a material component ROH. The
component quantity will be calculated as below to include the scrap.
If an adjusted required quantity of 1,100 pieces of FERT is to be produced, then 1,210 pieces ofcomponent ROH are required.
Operation Scrap
Scrap that is expected in one operation for the quantity of a component to be processed
Used to override the assembly scrap for materials of high value
If operation scrap is maintained, situations where too much of the material is planned inMRP for the components of subsequent operations can be avoided
If an entry for Operation scrap is made, then Net Scrap Indicator must be set to active
Applies to only one component
Operation Scrap - BOM Item detail screen: basic data
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Net Scrap Indicator
Determines whether scrap for the component is calculated on the basis of the net required
quantity (the required quantity without assembly scrap from the material master record).
Must be set to exclude Assembly scrap
Must be set to override assembly scrap with operation scrap
Can be set if only component scrap is entered, to calculate scrap on the basis of the netrequired quantity for the assembly
Net Scrap Indicator - BOM Item data
Operation Scrap Calculation
Operation scrap is maintained as 1% for one of the component ROH2 in the BOM. This
component is also subject to assembly scrap of 10%. For 1000 pieces of FERT assembly, thefollowing is the scrap calculation for component quantities.
Scrap Calculations
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Scrap calculation depends on the entry of various scraps (Assembly, Component & Operation
scrap) for the Assembly & Component Material and also influenced by Net Scrap Indicator in
the BOM Item detail.
Master data:
The following are the scrap quantities calculated for the above master data:
**** END OF THE DOCUMENT ****Regards,