ScaleUp Inc
All success storiesCPG / Food & Beverage

Scrap Reduction

To reduce scrap rates in a critical machining area of an automotive production line, enhancing productivity, cutting costs, and preventing overtime by reducing scrap from a high of 10% to below 3%. This initiative was aimed at sustaining efficient operations and meeting quality standards without additional labor or inventory costs.

Approach

  • Analyzed scrap data across six machines, detailing scrap generation by machine, defect type, and shift/operator information.
  • Evaluated operator adherence to standard procedures, retrained as needed, and modified SOPs for clarity.
  • Assessed grinding wheel specifications in the machining process and verified they met requirements.
  • Investigated preventive maintenance schedules and program settings, ensuring alignment with each component’s specific requirements, particularly focusing on grinding wheel dressing frequency.

Results

  • 4% Rapid Scrap Reduction: Scrap rates dropped to below 4% per shift initially through operator retraining and programming adjustments.
  • 2.5% Achievement of Target Scrap Rate: Within a month, scrap rates fell to under 2.5%, reaching closer to the target of less than 3%.
  • Operational Efficiency Gains: Overtime and increased inventory were no longer necessary as productivity improved, leading to cost savings.
  • 1% Ongoing Improvement: Scrap rates continued to decline to below 1% due to refined maintenance practices and updated scheduling for grinding wheel dressing, ensuring high product quality and reduced scrap.

Segment: CPG / Food & Beverage · Services: operational-excellence