Operations / Quality
Scrap vs Rework Rate
The share of production lost as unrecoverable scrap versus the share that failed but was fixed and sold, two very different costs the floor loves to merge.
The fork, why two teams get different numbers
Scrap is discarded and unrecoverable; rework is defective output repaired back into spec and shipped.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: ASQ cost-of-quality convention · GAAP inventory (ASC 330 normal vs abnormal spoilage) · APICS/ASCM