• Corpus ID: 204751453

An Evaluation of Actual Costs of Rework and Scrap in Manufacturing Industry

@inproceedings{Okechukwu2015AnEO,
  title={An Evaluation of Actual Costs of Rework and Scrap in Manufacturing Industry},
  author={Ezeanyim Okechukwu and O Onwurah Uchendu and Okoli Ndubuisi},
  year={2015}
}

• Ezeanyim Okechukwu, O. Uchendu, Okoli Ndubuisi
• Published 2015
• Business

In manufacturing sector, rework and scrap can result from errors, omissions, failures, damages, change orders, machine breakdown, poor maintenance practices, unmotivated employees, poor quality management, poor design of products and services; and the costs involved in rework process or scrapping of defective products can be overwhelming. This study evaluates in totality the actual costs of rework and scrap in the industry under study using cost volume analysis. The cost benefit of rework over scrap was analyzed in order to suggest to the management the need to embark on rework process if necessary when there is defective product rather than outright scrapping of the defective product. This study also recommends effective prevention strategies that could be implemented to improve products and process performance in terms of cost, time and quality in the industry under study and hence forestall the excessive cases of rework being experienced. Keywords—Cost of Rework; Cost of Scrap; Cost Benefit Analysis; Quality; Rework.