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Scrap Rate

The proportion of production output rejected as unusable.

Area
Manufacturing
Also known as
reject rate, waste rate
In this area
14 terms of 259

Scrap rate measures rejected output as a share of total produced. Unlike rework, scrapped units cannot be recovered — the material, labour and machine time are all lost.

Scrap is expensive twice over: you pay to make it and then pay to dispose of it. Trending it by product, shift and machine is what separates a material problem from a process one.

How it is calculated

Scrap rate = Units scrapped ÷ Total units produced

Value it at full absorbed cost, not material cost alone.

Related terms

Material Yield

The usable output obtained from a given quantity of input material.

Quality Hold

Blocking stock from use or sale pending inspection or a decision.

Inventory Write-Off

Removing worthless stock from the books as an expense.

Overall Equipment Effectiveness

OEE

A composite measure of how productively equipment is actually used.

More in Manufacturing

Assembly and Disassembly Bill of Materials (BOM) Kanban Make to Order (MTO) Production Routing Utilisation Rate Work in Progress (WIP) Work Order (WO)

Scrap Rate is not just a definition here

Manufacturing runs on this vocabulary every day in AWRA OpsHub — 14 of our 259 glossary terms describe things the platform actually does.

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