Scrap Vs Non-conformance

Trying to understand the impact of Scrap vs Non-conformance. For majority of the scraps, we keep the cost in Job only in our current system. That process will continue in our Epicor world as well.

There are two types of “defects” we see in our process - first type where the operator can make decision to scrap right away ( and hence save the time for non conf - inspec processing and so on) and second type where they need an inspector to look on part to make decision.

From what I have learned, if mark something Scrap in MES entry ,the cost (operation and materials) will remain in job and no further actions needed from Inspector. I’m doing some testing to verify but looking for someone with more comments.

Any comments?

We don’t use Non-conforming or MES, so my input is more to get the thoughts flowing…

Does the output of the job always go through inspection? As in your normal flow is to make it, inspect it (either 100% or sample lot), then recorded as production & scrap qty’s?

Or do you record 100% of what was produced (excluding the obvious failures you mentioned) as production qty, and then QC inspects it after it’s been reported?

The only time cost will move off a job is during NC and if it’s failed within the NC AND the move costs to DMR checkbox is selected. Scrap will leave the costs on the job and the job will want to make another unit to satisfy the qty demand still on the job. Your costing method for the part will then determine how this cost is moved into inventory. If Made Direct to a SO/Job, the actual job cost will move with it.

Hope this helps.