Question

The author lists three types of waste. List the three with the given definitions. Give a real world example of each type of waste.

Answer 1

Three types - Spoilge, Rework, Scrap

Spoilage

Units of production that do not meet customer requirements are labeled as spoilage. Normal spoilage occurs when a defective product is the result of normal production processes. Abnormal spoilage occurs when a defective unit is the result of operator, machine or material failure.

Rework

When the output of a process produces a defective product and that product can be repaired prior to shipment, costs associated with the repair are included in the rework account.

Scrap

Scrap is the excess unusable material that is left over after a product has been manufactured. This residual amount has minimal value, and is usually sold off for its material content. A business can reduce the amount of scrap that it generates by exercising great care in setting up production equipment, buying raw materials of adequate quality, and training employees in the proper use of production equipment.