Meaning
Financial and operational processes for reclaiming the value of wasted materials focus on minimizing the impact of manufacturing defects on the bottom line. Scrap loss recovery involves the collection of defective boards, excess solder, packaging waste and unused components for recycling or resale. This activity is a part of the waste management strategy in every high volume electronics facility.
Material Valuation
Calculating the potential return from the waste stream requires a detailed analysis of the precious metals and reusable parts. The scrap loss recovery program assigns a value to the collected items based on current market prices for copper, gold and palladium. These figures are then used to offset the total cost of the raw materials.
Yield Calculation
Efficiency of the production process is measured by comparing the weight of the finished goods against the weight of the inputs. A low rate of scrap loss recovery indicates that too much material is being lost to the floor or the bin without being recorded. Improving the tracking of waste helps in identifying the specific stations where the losses are highest.
Remediation Strategy
Implementing better handling procedures can reduce the amount of damage caused to parts before they even reach the assembly line. The scrap loss recovery data points to the need for better storage conditions or more frequent maintenance of the feeder systems. Reducing the volume of waste at the source is more cost effective than trying to reclaim it later.