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What would cutting scrap actually save?
Scrap hides in cost-of-goods where nobody owns it. Three inputs give you the annual number; the scenarios show what root-cause ML programs report recovering.
Inputs
All units entering the process
Typical discrete/process plants: 1-5%
Material + labor + energy + disposal
The math. Annual scrap cost = units × scrap rate × cost/unit. Scenarios apply 30% (typical ML root-cause result) and 58% (best vendor-reported published deployment).
Readout
Annual scrap cost·
Saved at −30% (typical ML result)·
Saved at −58% (best vendor-reported)·
Context: ML root-cause programs commonly report 10-30% scrap reductions; the highest figure published in this category, reported by a vendor about its own deployment, is −58%. The share of your scrap with unknown causes is the share ML can attack.
Next stepTake the number to the Cutting scrap: attack the unknown-cause share playbook, or get the ROI workbook: all four calculators in one sheet, with scenario columns, for your budget meeting.
Free ROI workbook
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All four loss calculators (downtime, OEE, scrap, energy) in one Excel sheet, with conservative / typical / best-published scenario columns. Built for your budget meeting.
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