Unaccounted scrap
Unaccounted scrap is inferred from the quantities counted on the machines.
If there is a discrepancy between the IN and OUT counts, then material must have been lost somewhere in the process.
- Total scrap = Quantity IN - Quantity OUT
- Unaccounted scrap = Quantity IN - Quantity OUT - Accounted Scrap
Therefore, If one hundred (100) pieces were counted into the line, but only ninety (90) pieces were counted out of the line, then the total scrap is ten (10) pieces.
If eight (8) pieces of this scrap were recorded, then the accounted scrap is eight (8) and the unaccounted scrap is two (2).
Note: Adding extra production counters to the machines in
the line makes it easier to detect where unaccounted scrap is being created.
The counts at each machine can be analyzed to see where the losses are.