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:

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Scrap Calculation