This document discusses different types of scrap that can occur during production - assembly scrap, component scrap, and operation scrap. It provides details on how each type of scrap is defined and calculated, including how they can be entered and applied in bills of materials and material master records. Formulas are given for calculating the quantities of components and assemblies needed to account for different scrap percentages.

1. Scrap Calculation
Content
1. Scrap
2. Typesof Scrap
3. AssemblyScrap
4. ComponentScrap
5. OperationScrap
6. Scrap Calculation
Scrap
Non-conformingmaterial thatcannotbe reworkedorusedandhas novalue exceptforitsmaterial
content.
Typesof Scrap
The followingare the variousscrapsthatare maintained
1. AssemblyScrap
2. ComponentScrap
3. OperationScrap
AssemblyScrap
Percentage scrapthat occurs duringproductionof the material if the material isanassembly.
Takesintoaccount all faultsthat occur whenthe individual componentsof anassemblyare assembled
(inproduction).
Maintainedinthe Material Master - MRP 1 View aspercentage
Assemblyscrapisusedinmaterialsplanningtocalculate the lotsize of the assembly.The system
increasesthe quantitytobe producedbythe scrap quantitycalculated.
Dependency:
The systemincreasesthe quantitytobe producedforall of the assembly'scomponentsaccordingly.
AssemblyScrap-MRP1View

2. AssemblyScrapCalculation
Let the material masterrecordof headermaterial FERTcontainsan 10% of assemblyscrap.The
subordinate componentROHquantitywill be calculatedasbelow toinclude the scrap.
The resultingcomponentquantitiesforROHiscalculatedfor1,100 piecesof assembly FERT.
ComponentScrap
Percentage of scrapthat occurs duringproductionof the material if the material isa component.Ittakes
intoaccount all faultsthatoccur before the componentisputintoanassembly(materialprovision
scrap).
Appliesonlytoone component
Componentscrapcan be maintained
- In the BOMon the Itemdetail screen:basicdataunderQuantitydata.This componentscrapisonly
relevanttothe individual BOM.
- In the material masterrecordonthe MRP 4 screenunderRequirementsexplosion.If the same
componentscrapappliestoa material ina numberof BOMs, thenit can be maintainedinthe material
masterrecord.
Componentscrapisusedinmaterial requirementsplanning(MRP) todetermine the quantitiesof
componentsrequired.Whenexplodingthe bill of material (BOM),the systemincreasesthe required
quantitiesof the componentsbythe calculatedscrapquantity
ComponentScrap - Dependencies
Componentscrapmaintainedforamaterial componentinaBOM overridesthe componentscrap
maintainedinthe material masterrecord.
If there is alsoassemblyscrapfora higher-levelassembly,the systemaddstogetherthe twotypesof
scrap
BOM Itemdetail screen:Basicdata

3. If the componentscrapisonlyrelevanttothe individualBOM,thenit can be maintainedinthe BOM
Itemdetail screen
ComponentScrap - MRP4 View
If the same componentscrapappliestoa material ina numberof BOMs, thenitcan be maintainedin
the material masterrecord.
ComponentScrapCalculation
If a componentscrapof 10% is maintainedforthe material componentROHinthe BOM, thenthe
componentquantitywillbe calculatedtoincludethe scrapas below.
ComponentScrap& AssemblyScrap
Assemblyscrapof 10% is maintainedinthe material master recordof assemblyFERT.
In BOM, componentscrapof 10% ismaintainedforamaterial componentROH.The component
quantitywill be calculatedasbelow toincludethe scrap.
If an adjustedrequiredquantityof 1,100 piecesof FERT isto be produced,then 1,210 piecesof
componentROHare required.
OperationScrap
Scrap that isexpectedinone operationforthe quantityof acomponenttobe processed
Usedto override the assemblyscrapformaterialsof highvalue
If operationscrap ismaintained,situations where toomuchof the material isplannedinMRPfor the
componentsof subsequentoperationscanbe avoided

4. If an entryforOperationscrapis made,thenNetScrapIndicatormust be setto active
Appliestoonlyone component
OperationScrap - BOMItemdetail screen:basicdata
NetScrap Indicator
Determineswhetherscrapforthe componentiscalculatedonthe basisof the netrequiredquantity(the
requiredquantitywithoutassemblyscrapfromthe material masterrecord).
Must be setto exclude Assemblyscrap
Must be setto override assemblyscrapwithoperationscrap
Can be setif onlycomponentscrapisentered,tocalculate scrapon the basisof the netrequired
quantityforthe assembly
NetScrap Indicator- BOMItemdata
OperationScrapCalculation
Operationscrapismaintainedas1% for one of the componentROH2 inthe BOM. Thiscomponentis
alsosubjectto assemblyscrapof 10%. For 1000 piecesof FERT assembly,the followingisthe scrap
calculationforcomponentquantities.
Scrap Calculations
Scrap calculationdependsonthe entryof variousscraps(Assembly,Component&Operationscrap) for
the Assembly&ComponentMaterial andalsoinfluencedbyNetScrapIndicatorinthe BOMItemdetail.
Master data:
The followingare the scrapquantitiescalculatedforthe above masterdata:
**** END OFTHE DOCUMENT ****Regards,