{"id":117,"date":"2015-04-14T10:32:33","date_gmt":"2015-04-14T10:32:33","guid":{"rendered":"http:\/\/www.plastikcity.co.uk\/blog\/?p=117"},"modified":"2020-10-23T11:52:46","modified_gmt":"2020-10-23T11:52:46","slug":"what-is-your-real-scrap-rate","status":"publish","type":"post","link":"https:\/\/www.plastikcity.co.uk\/blog\/what-is-your-real-scrap-rate\/","title":{"rendered":"What is your REAL scrap rate?"},"content":{"rendered":"

Scrap rates for the injection moulding industry are easy to calculate, but often painful to believe \u2013 it is simply the difference in weight between how much plastic you buy in, and the total weight of parts delivered.\u00a0Typically this is as much as 10%, although when questioned about scrap rates companies reported to us the figures they wanted to talk about – such as \u201ccustomer reject rates\u201d of 4.5ppm or their \u201cproduction reject rate\u201d where we heard of 0.001%.\u00a0 These figures are just self-congratulatory and distorted.<\/strong><\/p>\n

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Scrap rates significantly affect the profitability of your business and many of the challenges to overcoming a high scrap rate have simple and logical solutions.\u00a0 Every \u00a31 reduction in scrap production is worth more than \u00a31<\/strong> onto your bottom line.<\/p>\n

Take a small moulder with sales of \u00a35M,\u00a0a net profit of 5% on sales yields \u00a3250,000. \u00a0Up to half of the revenue could be on raw materials (\u00a32,500,000) and with a scrap rate of 10% plus the cost of generating this scrap could result in a total cost of\u00a0\u00a3350,000. \u00a0If a 50% reduction in scrap could be realised, this not only reduces the cost of scrap by \u00a3175,000 it also increases the net profit by 70%.<\/p>\n

There is no reason why it couldn\u2019t be more, but to achieve anything requires a change in the way the business operates \u2013 put simply, it needs more knowledge.\u00a0 If your nearest competitor is buying materials, utilities and labour all at roughly the same rate, how do you become more competitive?<\/p>\n

The reality is that if you don\u2019t train your staff \u2013 you are willingly paying them to ruin your business.<\/strong><\/p>\n

The first reaction is normally along the lines of \u201c\u2026what if I train my staff and they leave?<\/strong>\u201d but what you should really consider is\u00a0\u201cwhat will happen if you DON\u2019T train them and they stay?\u201d<\/strong><\/p>\n

If you are serious about improving the skills of your production workforce, ask yourself a few questions:-<\/p>\n

\u2013\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What training methods have you used in the past?<\/p>\n

\u2013\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Were any of these methods effective?<\/p>\n

\u2013\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What metrics were used to measure their effectiveness?<\/p>\n

There are several methods used for training within the plastics industry, each of these methods has their pros and cons.\u00a0 With Routsis Training our unique approach uses a blended model where multiple training methods are combined to achieve maximum effectiveness.\u00a0 We have found that the 7 biggest mistakes that companies make with respect to training are:-<\/p>\n