Fabrication scrap reduction.
Putting floor controls around material waste, rework, and production handoffs.
The constraint
A 16% scrap rate, high rework labor, and inconsistent CAD to floor handoffs had compressed operating margin to 4.5%.
What changed
- Required CAD nesting approval before raw sheet cutouts.
- Added workstation scrap logs and daily threshold boards.
- Rebuilt stock rules to prevent off-cut hoarding.
Result
The floor gained a shared visual standard for waste and rework, with clearer ownership at each handoff.
6.5%scrap rate
$115kannual material savings
31%less rework labor