Scrap Rate
The percentage of materials or products that cannot be used or sold due to defects, damage, or failure to meet specifications. Tracking scrap rate helps identify quality problems, calculate true production costs, and prioritize improvement efforts to reduce waste.
RELATED TERMS
First Pass Yield
The percentage of units that pass quality inspection without requiring rework, repair, or scrapping on the first attempt. First pass yield measures process capability and quality, with higher yields indicating more efficient operations and lower costs of poor quality.
Quality Management System
A formalized system that documents processes, procedures, and responsibilities for achieving quality objectives and meeting regulatory requirements. QMS provides a framework for continuous improvement, ensures consistent product quality, and helps organizations achieve certifications like ISO 9001.
Overall Equipment Effectiveness
A metric that measures manufacturing productivity by multiplying three factors: Availability (uptime), Performance (speed), and Quality (good units produced). An OEE score of 85% is considered world-class, while most manufacturers operate between 60-70%. OEE identifies losses and improvement opportunities in equipment utilization.
Lean Manufacturing
A systematic approach to manufacturing derived from the Toyota Production System that focuses on eliminating waste while delivering value to customers. Lean identifies seven types of waste (overproduction, waiting, transport, overprocessing, inventory, motion, and defects) and uses tools like value stream mapping, 5S, and kanban to continuously improve processes.