Scrap and rework costs as a percentage of sales

This measure helps companies calculate the total cost of material that is added into production but is not part of a finished product as a percentage of sales. It is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "produce/manufacture/deliver product."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
103169
Total Sample Size:
1,008 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
Yes

Sample image showing interactive filters for more detailed measure peer group data and an interactive graph.

Compute this Measure

Units for this measure are percent.

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Scrap and rework costs as a percentage of sales

Key Terms

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Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.3.1)

  • 4.3.1 - Schedule production (10303)
    • 4.3.1.1 - Model and simulate plant (19563)
    • 4.3.1.2 - Generate line level plan (10306)
    • 4.3.1.3 - Generate detailed schedule (10307)
    • 4.3.1.4 - Schedule production orders and create lots (10308)
    • 4.3.1.5 - Schedule preventive (planned) maintenance (preventive maintenance orders) (10315)
    • 4.3.1.6 - Schedule requested (unplanned) maintenance (work order cycle) (10316)
    • 4.3.1.7 - Release production orders and create lots (10309)
  • 4.3.2 - Produce/Assemble product (10304)
    • 4.3.2.1 - Manage raw material inventory (10310)
    • 4.3.2.2 - Execute detailed line schedule (10311)
    • 4.3.2.3 - Report maintenance issues (10319)
    • 4.3.2.4 - Rerun defective items (10313)
    • 4.3.2.5 - Monitor and optimize production process (19566)
      • 4.3.2.5.1 - Automate and control plant (19567)
      • 4.3.2.5.2 - Perform advanced process control (19568)
      • 4.3.2.5.3 - Perform real-time optimization (19569)
      • 4.3.2.5.4 - Manage plant alarms and alerts (19570)
    • 4.3.2.6 - Assess production performance (10314)
  • 4.3.3 - Perform quality testing (10369)
    • 4.3.3.1 - Calibrate test equipment (10318)
    • 4.3.3.2 - Perform testing using the standard testing procedure (10374)
    • 4.3.3.3 - Manage quality samples (20956)
    • 4.3.3.4 - Record test results (10375)
    • 4.3.3.5 - Track and analyze non-conformance trends (12045)
    • 4.3.3.6 - Perform root cause analysis (12046)
  • 4.3.4 - Maintain production records and manage lot traceability (10370)
    • 4.3.4.1 - Determine lot numbering system (10376)
    • 4.3.4.2 - Determine lot use (10377)