We’ve covered TigerStop’s detailed and authoritative white papers before, and now the company has a new white paper that is so informative we wouldn’t dare keep it from our readers. How to Reduce Scrap is available as a free PDF download, and although it focuses on wood, the guidelines provided can easily be worked into any type of construction or remodeling business.
Following is a short excerpt from the white paper.
Scrap is a great indicator of a company’s performance. Every piece of scrap in the scrap bin has a story about how it got there. Scrap is a domino effect. A full scrap box can suggest poor operator performance or machining at the very beginning of the production process leading to rework, bottlenecks, poor quality controls, and eventually, a late or mismanufactured product arriving at your customer’s doorstep. It all adds up. Stop the domino effect. Rethinking how your organization handles its scrap can do more for the bottom line than any other activity.
To reduce scrap in your shop or onsite, TigerStop recommends these steps:
Change How You Perceive Scrap – Scrap is very costly for a business. You spent time and money on ordering, shipping, processing and handling. Even if it is accounted for on your monthly operating statement, this still does not reflect scrap’s true value.
Reduce Scrap – Reducing scrap goes right to your bottom line. Presuming you work with $2,800 of material per day, and your yield is only 80 percent, that’s $560 of lost money. In one month, that adds up to $16,800, and in one year, the total is $201,600.
Measure and Record Scrap – The first step in reducing scrap is simply to measure it and keep a log somewhere that is highly visible. This will get your team to think about each piece of scrap they throw in the bin. In addition, you will want to talk to your employees about scrap each week or no less than once per month.
Use an Automated Stop – According to TigerStop, the average tape measure costs $38,592 per year. This is because of inaccuracies, labor, reduced yield and more. To reduce these costs, consider automating your shop with a CNC machine. Automated CNC stops provide accurate, perfectly cut materials every time. In addition, you may want to think about an automated pusher or saw.
Increase Yield – By implementing dynamic optimization software in conjunction with automated tools, you can increase yield and reduce scrap. This software looks at your raw materials and considers all of the cuts you will need for your upcoming jobs. It then makes it possible to use what would once be scrap to cut new pieces.
Defect Materials In-House – Defecting material yourself permits you to drop a grade in lumber or whatever the material may be. You can cut around any defects, lowering the costs of your raw materials. Using a defecting optimizing saw can save you at least 30 percent on your costs.