Scrap Cost Notes: Definitions & Explanations PDF | Download eBooks
Study Scrap Cost lecture notes PDF with total quality management definitions and explanation to study “What is Scrap Cost?”. Study scrap cost explanation with TQM terms to review total quality management course for online MBA programs.
Scrap Cost Definition:
Net loss of labor, material, and overhead resulting from defective product that cannot economically be repaired or used is called scrap cost.
Introduction to Statistical Quality Control by Douglas C. Montgomery
Scrap Cost Notes:
Quality control is necessary to be performed in order to identify non-conforming or defective products produced by the process. The defective products can either be reworked or are scrapped. Scrap is defined as the non-conforming products that cannot be repaired or reworked to eliminate the defects in them. Scrap is basically waste products that are completely unfit for use. The cost associated with scrapped items is called scrap cost. The scrap costs involves the lost money of labor, machine, material and other overheads. Scrap costs are included in the internal failure costs as products are inspected and scrapped before they are shipped to the customers.
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