1. Kladana
  2. Production Management
  3. Quality Control

Scrap Management in Production

During production, some units of semi-finished or finished products may be defective or result in scrap. Like the rest of the output, these defective units and scrap should be accurately tracked — to calculate production costs, write off losses, or assess the possibility of reuse.

Scrap Management Methods

In Kladana, you can manage production scrap and defective products in the following ways:

  • If any scrap is produced, it should be recorded during the execution of the production operation. In this case, the scrap cost includes the expenses from all previous operations and is added to the cost of the final products.
  • To write off a defective product and include its cost in indirect expenses, create a Production Order, and then a Write-off.
  • If the defective product or its components can be reworked, enter the additional correction costs in the Process Tracking tab.
  • If you need to reject raw materials allocated to a specific product item due to defects, record the actual material consumption in the Scrap document.

Scrap Management in Production Order

During the execution of a Production Order, you can create a Scrap document for any production operation. Recording scrap writes off the consumed raw materials and reduces their available quantity by the scrap volume in subsequent production operations.

To record scrap during a production operation:

  1. In the Production Order, in the Process Tracking tab, find the row of the production operation where the scrap occurred. At the end of that row, click the menu icon and select Record scrap. record scrap.png
  2. In the window that opens, enter the Scrap volume and click Save. The scrap volume cannot exceed the Volume ratio. The performer of the operation is filled in automatically if one was specified for the operation. Labour costs are not calculated for scrap, so the Labour Cost field is automatically set to zero. scrap form.png
    You cannot record scrap for the final or stopping operation.
  3. To display the recorded scrap volume in the Production Order, in the Process Tracking tab enable the Scrap column in the table settings. scrap column.png

Recorded scrap affects the following:

  • In the Production Order, it is registered as a negative deviation and increases the cost of the final product in the next successful output.
  • In the Production Progress Report, it impacts the Production Progress and Work-in-Progress indicators.
  • In the Operation Report, scrap affects the report results.