Scrap and yield

In manufacturing processes it is often necessary to plan the production for more of a product than you actually need, because some of the product may be outside specification. Some of the components can break during, or turn out to be unsuitable for production. This effect can be modeled by means of scrap and yield.

The scrap and the yield are taken into account in the following situations:

• Exploding bills of material
• Cost accounting
• Estimating material requirements and hours for production orders
• Reporting operations and orders completed