Mechanical work involves many indicators every day, but the indicators that are talked about every day, after a month of hard work, the masters found that a large amount of money was deducted from the salary for the scrap rate, so the masters changed jobs. after another. Many people don’t understand why so many fees are deducted. Why are there so many products that have not been discarded?
Today I will explain to you how this data is calculated. You will understand after reading it!
1. Scrap rate
Definition: This percentage is calculated by dividing the waste cost by the total production cost or by dividing the total waste quantity by the total production quantity of the product.
Purpose: Used as an outcome measure to determine whether the process produces and assembles parts according to specifications.
Formula: Scrap rate % = (material scrap quantity/total production cost) × 100% or (total scrap quantity/total production quantity of product) × 100%.
Related terms
Scrap Quantity: This is the value of the materials used in the scrap.
Total production cost: this is the sum of labor, materials and factory charges (water, electricity, etc.).
Application/Information: Calculating scrap involves obtaining its value directly from the unit’s financial system. If the company’s financial system cannot separate the value of waste from labor costs and charges, it should coordinate with relevant departments as soon as possible to resolve the problem.
2. Recovery rate
Definition: The proportion of time spent on rework activities, calculated by dividing rework hours by production labor hours or the total number of items reworked (reworked) divided by the total production quantity.
Purpose: Used as an outcome measure to highlight operating stations that require improvement during the first quality.
Formula: Rework rate % = (rework hours/total production labor hours) × 100% or (total quantity of reworked (reworked) products/total production quantity) × 100%.
Related terms
Rework Hours: refers to the time spent reprocessing, sorting and repairing parts that will become scrap. This time can be spent on work in progress, finished products, and purchased parts or materials. Rework time includes items such as repair, reconditioning, remediation, additional inspection activities and containment. Rework time includes internal or external activities. Must include direct time plus direct portion of overtime.
Production Hours: The total number of hours worked by direct/production workers (including direct time plus the direct portion of overtime).
Application/Information: Occasional inspections carried out by direct workers should not be considered a rework. Any product that re-enters the production process must be considered reworked. Part of the total labor content of a production line should be considered rework. This part will be determined based on the situation of the reworked products. During the final inspection, 10% of the products in the paint production line were unqualified, and there were a total of 20 operators in the paint production line. 10%) had to be repainted. 10% of the total working time of the paint production line is considered to be spent on touch-ups. 10% × 20 people × 8 hours = 16 hours of recovery.
3. Product storage inspection pass rate
Definition: The quantity of products that pass the entry check is divided by the total quantity of the entry check.
Purpose: Used as a process metric to measure the quality level of the entire production process.
Formula: Inbound product inspection pass rate % = (inbound product inspection qualified quantity/total inbound inspection quantity) × 100%.
4. Number of items rejected in millions of minutes
Customer return rate or defective product rate
Definition: The ratio of the number of customer returns/rejects or number of nonconforming products per million units to the partial shipment quantity or total total production.
Purpose: Used as an outcome measure to comprehensively display the impact of product dissatisfaction so that efforts can be focused on resolving the issue.
Formula: Customer return rate = number of pieces returned / number of pieces shipped, total product quantity * 1,000,000 or defective product rate = total number of unqualified products / total product quantity * 1,000,000.
5. Quality accidents
Definition: The number of production shutdowns per year due to product failure. Cause the company to stop shipments, stop production, or require changes to products already produced.
Purpose: Used as an overall outcome measure to reflect product dissatisfaction caused by the number of company quality incidents, to help focus on resolving the issue.
Formula: Quality incidents = Number of factory production stoppages caused by company-defined quality incidents per year.
6. Processing rate of defective parts
Inspection pass rate or process pass rate
Definition: Inspection pass rate or process pass rate is the number of qualified parts divided by the total number of parts produced or the weighted average of the processing rate of defective parts is the number of unqualified parts divided by the number of pieces produced;
Purpose: Used as a process measure to determine the quality level of the production process.
Formula: Rate of defective parts in processing = (number of unqualified parts/number of parts invested in production) × 1,000,000.
7. First time customer inspection pass rate
Definition: Refers to the quantity of delivered products that pass customer inspection at one time, divided by the total quantity of delivered products.
Purpose: Used as an outcome measure to measure the level of quality of outgoing finished products.
Formula: First time customer inspection pass rate % = (Quantity received qualified once per customer inspection / Total quantity of products delivered) × 100%.
8. Simple Matching Scheme
Pass rate for first inspection of incoming materials
Definition: Over a certain period of time, the quantity of qualified incoming materials divided by the quantity of incoming material inspections.
Purpose: Used as an outcome measure to monitor the quality level of the supplier.
Formula: Incoming Material Inspection Pass Rate % = (Incoming Material Inspection Qualified Quantity/Total Incoming Material Inspection Quantity) × 100%.
9. Cost of quality
Definition: Simply defined as the cost of failure (loss) over a certain period of time.
Purpose: Used as an outcome measure to reflect the comprehensive results of the effectiveness of the company’s quality management system.
official:
Quality cost = internal failure (loss) cost + external failure (loss) cost;
Internal failure (loss) cost = scrap loss costs + rework or repair loss costs;
External Failure (Loss) Cost = Customer Return Loss Fee + Product Liability Fee + Claim Fee;
The quality cost/sales ratio = (quality cost ÷ sales) × 100%.
Related terms:
Internal failure (loss) costs: losses caused by products that do not meet quality requirements before delivery;
External failure (loss) costs: losses caused by products that do not meet quality requirements after delivery;
Scrap Loss Costs: Costs incurred due to the scrapping of finished products, semi-finished products and work-in-process products that do not meet quality requirements and cannot be repaired or are not worth the cost. difficult to repair economically;
Rework or Rework Loss Costs: Costs paid to repair defective products to bring them into compliance with expected quality requirements or usage requirements;
Customer return loss costs: the cost of the loss of rejected products returned by the customer;
Product liability costs: associated compensation losses caused by product quality defects;
Claim Fee: The cost to repair or replace products with quality problems reported by customers.
10. Batch failure rate
Definition: It is the ratio of the number of batches that need to be reworked (or repaired or scrapped) due to unqualified inspection judgments among all inspection batches in a certain period, per in relation to the total number of inspection lots.
Purpose: Used as an outcome measure to monitor the overall quality level of the process.
Formula: Batch failure rate = number of failed batches/total number of inspection batches*100%.
Inspection batch: It is a batch of products subject to inspection, and it is also a batch of products collected as objects of inspection. Generally, the inspection batch should consist of unit products of the same model, quality and type (size, characteristics, ingredients, etc.), and the production parts and production time are basically the same.
Production batch: designates a certain number of products put into production determined by the production plan.
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