How can I tell if a machine shop’s scrap and rework rate is under control?

Ask first how scrap is noticed and recorded. Does the operator write it down at the machine, or does it surface weeks later in a customer complaint? Look at a sample of the logs. Good records name the part, the machine, the operator, the reason and what was done to prevent a repeat. Vague entries such as "bad part" suggest nobody is learning from them.

Next, look at the scrap bin and the rework shelf. How full are they, and how old is what is in them? Rework that sits for months is a sign that no one owns the problem. Ask who decides whether a part is scrapped, reworked or shipped, and whether a customer must approve.

Then check the costs. Are scrapped parts and remade work included in what jobs are quoted at? Your accountant can help you see whether the books show these losses or bury them inside material and labour. Ask about the worst job of the last year and how it was handled. Look for patterns tied to one machine, one material or one shift. Honest answers matter more than a perfect record.

Key takeaways

• Ask to see scrap and rework logs by job, with causes and corrective steps recorded.
• Check the scrap bin and rework shelf for age and quantity.
• Ask about the worst job of the last year, and look for repeating causes.