Scrap is a term you’ll frequently hear in the manufacturing industry. Manufacturing companies of all shapes and sizes pay close attention to their scrap rate, as this affects their profits. So, what is scrap is how is it used in the manufacturing industry?
In the most basic sense, scrap is the discarded material from a manufacturing job. If an automaker is manufacturing a car and has steel leftover after finishing the car, that leftover steel is considered scrap. It’s excess material that’s not required to manufacture the car. However, scrap can also be a complete batch of parts that needs to be recycled.
Scrap may also consist of small and otherwise insignificant materials, assuming those materials are leftover and not needed. Metal shavings, for instance, are considered scrap. A couple metal shavings isn’t going to place a financial strain on your business. Over time, though, those shavings can add up, costing your business big bucks.