How to reduce scrap? How to achieve sustainable improvement

SCRAP REDUCTION STORY

Are you familiar with the problem of finding 25% of your muffins are burned, without sugar, or similar - and you cannot offer those to visitors? Consequently, you end up eating them yourself, even though they might not taste ideal, and scrapping them this way may not be too beneficial for your shape. This is what we call a problem statement.

Now, let's move forward by visualizing the different types of scrap using the Pareto principle. You will go through measuring scrap, visualizing, analyzing, investigating it, while our scrap reduction approach ensures your muffins are highest quality. You might eat even more.

Are you grappling with high scrap levels? Scrap is a wastage of money, resources, and materials during production and transportation. It can ruin your lead times and service level.

The following step-by-step approach for scrap reduction has proven highly beneficial in consultancy and coaching.

1. USE DMAIC TO SYSTEMATICALLY APPROACH THE PROBLEM

DMAIC serves very effectively as reliable framework for scrap reduction initiatives. DMAIC fosters systematic problem solving and sustainable results.
To facilitate the practical application of DMAIC, we have compiled the essential elements for scrap reduction. Learn more about how to use DMAIC for scrap reduction.

2. SET UP YOUR PROJECT

To begin, we recommend setting up a project charter. Utilizing a project charter helps the project leader gain clarity on crucial elements, such as:

a concise problem statement
clearly defined goals and metrics
involved project team and roles

3. SCOPE YOUR PROJECT

To ensure accurate scoping of the project right from the start utilizing SIPOC greatly enhances the chances of success.

4. CALCULATE THE BUSINESS CASE

At the outset of any improvement project estimate the business case to determine the project’s value. Is the scrap project worth pursuing?

Use our bucket list to put together your business case:

Cost of materials (scrapped)
Cost of production that was invested into parts or batches before losing them
Cost of rework (personnel and equipment)
Cost of inventory caused by batches waiting due to rework, scrap, or non-conformances
Cost of inventory caused by overproduction to balance output variation caused by rework, scrap, non-conformances
Cost of personnel for working on NCRs, CAPAs, releases, for processing rework requests or quality documentation

The result of this must be something in a currency.

5. MEASURE AND VISUALIZE YOUR SCRAP

Many insights will come from tracking the scrap rate over time to study its evolution and variation. Work with trend charts. Display visually the most common types of scrap. Use Pareto. Pareto Chart will point out the main contributors to scrap generation.

6. TAKING A CLOSER LOOK AT THE PROCESS VARIATION

When dealing with scrap problems, it becomes necessary to dive deeper into the realm of process variation. Scrap issues often arise due to common cause variation rather than due to special causes. But heads up: Attempting to address a common cause problem using a special cause approach has proven to make scrap rates worse. The concept of common and special cause variation can be intuitively understood by anyone, even without extensive data analysis.

7. FIGURE OUT WHETHER YOUR PROCESS IS CAPABLE

Process capability should be enhanced to address common cause problems and minimize deviations. Does your team have to work with Cpk or Ppk to gain new insights into the process?

8. FIND THE ROOT CAUSE

Working with Fishbone/Ishikawa diagrams broadens the perspective to not oversee potential root causes and to collect potential root causes systematically. Narrowing down the potential root causes is usually a straightforward task.

9. PREVENT MISTAKES

If human error is identified as one of the primary root causes, adopting the principles of Poka Yoke can significantly contribute to improvement. By employing Poka Yoke, you can enhance processes, systems, and designs to minimize the likelihood of human errors, thereby improving overall performance.

10. CONTROL THE RESULTS

In the final stage of the project, building upon DMAIC, it is essential to visualize and monitor the chosen metrics to validate success or initiate a new iteration. Visualizing and observing the selected metrics helps gather insights into the effectiveness of the implemented improvements, ensuring that the objectives are achieved. This feedback loop triggers continuous improvement.

How to reduce scrap

WORK SYSTEMATICALLY WITH METHODS