Scrap rate is defective units over total produced — the quality-cost signal on a production line. It drives material waste, rework, and yield, and is the easy win most lines chase first.
The example
18 defects of 1,200.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Defects | 18 |
| 3 | Total | 1200 → 1.5% |
The formula
The formula:
How it works
How it works:
- Divide defective units by total produced for the scrap rate.
- The good-unit rate (yield) is
1 - scrap. - Translate to cost:
defects × cost_per_unit— the money lost to scrap. - Track by defect type or station with COUNTIF to target the biggest contributor.
Scrap is cheaper to prevent than rework. Pareto the defects — COUNTIF by defect type, sorted — and usually a few causes drive most of the scrap. Fixing the top one or two moves the rate more than broad effort. Express the gain in dollars (defects × cost_per_unit) to justify the fix to finance.
Try it: interactive demo
Defects and total units.
Variations
Yield
Good rate:
Scrap cost
Dollars lost:
By defect type
Pareto:
Pitfalls & errors
Defects vs total. Divide by total produced, not just good units.
Scrap vs rework. Decide whether reworkable units count as scrap.
Zero produced. No units gives #DIV/0!.
Practice workbook
Frequently asked questions
How do I calculate scrap rate in Excel?
How do I get yield from scrap rate?
How do I find the biggest defect cause?
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