Types of Scrap:

1. Assembly scrap - maintained in MRP-1 view

2. Component scrap - Maintained in MRP-4 & BOM, BOM will be the first priority
3. Operation scrap - maintained in BOM level.
Other than this you can maintain the scrap in Routing-operation details, below general
data scrap % field also.

1. Assembly Scrap:

During Production there will be some loss always due to various reasons and due to this we
will get less output than the planned one…for example if planned to produce a qty of 100
KG we may get around 99.5 KG as the final output or yield. Now to get the actual output as
the planned one we need to increase the planned qty by some percentage so that we will
get the output as per the expectation.. For this we use Assembly Scrap…

Assembly scrap increases the order quantity of the header material and subsequently
increases the order quantity for corresponding components. The dependent requirements
of the material components are therefore increased correspondingly.

 Percentage scrap that occurs during production of the material if the material is an
assembly.
 Takes into account all faults that occur when the individual components of an assembly are
assembled (in production).
 Maintained in the Material Master - MRP 1 View as percentage
 Assembly scrap is used in materials planning to calculate the lot size of the assembly. The
system increases the quantity to be produced by the scrap quantity calculated.
 The system increases the quantity to be produced for all of the assembly's components
accordingly.
Flow:
Maintain 5% as the assembly scrap in the MRP1 view in material master for the header
material…

Create Process order for header material with order qty as 1

System increases the order qty by 5% as shown below….
Now go to components overview… you can observe components qty’s are also increased by
5%

Save the order

2. Component Scrap:
Sometimes a particular component always consumed more during a production process
than the planned one. Component scrap only applies to one component. Component scrap
increases the dependent requirements quantity of the component.

Settings:

– You can enter values for calculating component scrap in the material master or the BOM
in the BOM on the Item Detail Screen General Data (data block for quantity data). This
component scrap is only relevant for the individual BOM.
– In the material master (view MRP 4) in the Component scrap field. This component scrap
is relevant for all BOMs.
-The component scrap quantity maintained for a material component in the BOM has the
higher priority.

Flow:
Following is the BOM structure of header material with two components….

Maintain 5% as component scrap in in the BOM item details for the component 200-210 as
shown below…..
Create process order for header material with order qty 1
Now go to component overview in the process order and you can observe that only qty of
component 200-210 is increased by 5%

Save the order

3. Operation Scrap:
During Production process after a particular operation you may get some loss. Now you
need to adjust the qty, standard values and other values of the subsequent operations. For
this Operation scrap is used in production.

Settings:

You can enter operation scrap (in %) in the routing and in the BOM.
The operation scrap entered in the routing refers to the activity quantity consumed, while
the operation scrap entered in the BOM refers to the material quantity used. In this case,
the net indicator must be turned on.

Flow:

Following is the routing structure of header material with three operations….

Maintain 10% as operation scrap in the operation details of the operation 1 as shown
below….
Now create Production order for header material with order qty 100 KG
Now go to Operation overview…

Scroll to right…..you will be able to see operation qty of second operation and third
operations are reduced by 10%…

Maintain the operation scrap as 5% in the BOM component 2160 and also activate indicator Net
ID in the item details as shown below…
Now create production order for 100 KG for header material
Go to components overview and observe that component qty of 2160 is increased by 5%

Reports:
You can use following reports...
MCPK - Operation Analysis: Quantities
MCPO - Material Analysis: Quantities
MCPQ - Work Centre Analysis: Quantities
MCPM - Production Order Analysis: Quantities