Yield and Scrap Factors

The yield factor is entered on the Control screen of the Part Master Maintenance conversation.  It specifies the percentage of the end item that is typically scrapped (for example, 5% of the parts do not pass quality inspection or are lost in the production process); Master Scheduling and Requirements Planning automatically inflate the part's requirements to allow for the yield factor.

In addition to this yield factor, you can identify a scrap factor on each product structure record.  The scrap factor is used for additional scrapping that occurs because of the component's relationship to the parent.  For example, when a part is used to make one particular parent, the manufacturing process for that parent might damage some of the components, resulting in additional scrapping.

When calculating component requirements for the parent, the planning modules inflate for both the yield factor and the scrap factor.  The inflated quantity is the one that appears on the purchase requisition, manufacturing order, or flow requirement created by the planning modules.

Part master yield factors are used for planning purposes only, while product structure scrap factors are used in both planning and product costing.

Please note that using scrap factors will affect how you report scrap for manufacturing orders in the Shop Floor Control module.  When an item is scrapped, you can specify that it be scrapped at the component level (the entire value of the scrapped component is removed from Work in Process) or at the parent level (the material cost of the parent part is removed, together with the costs associated with any labor or overhead incurred through the operation where the item was scrapped).  If you define a scrap factor on the Part Master File for an item, you should allow users to report only parent scrap against that item.  This recommendation is based on the fact that the cost of component scrap is already calculated into the cost of the parent part when scrap factors are used.