This table illustrates two points: First, that most IndustryWeek Best Plants competition finalists and winners have reduced their scrap and rework costs over the past three years, and second, that numbers can be deceiving. Scrap and rework costs as a percentage of sales have declined a median 34.5% in the past three years for the Best Plants winners and finalists that competed in the past five years. On the other hand, data show the average reduction is actually a 26.6% increase. The average reduction (or increase) is heavily influenced by one participant that recorded a 5,500% increase in 2008. The deceptive aspect of data is not the increase, which is correct, but the easy assumption an observer could make that the one plant's scrap and rework costs must be incredibly high. In fact, in this instance scrap and rework costs rose from a tiny fraction of 1% of sales to a somewhat larger but still tiny fraction of 1% of sales.
| Reduction in scrap/rework, last three years (%): | | Year | Median | Average | Minimum | Maximum | | 2006 | 33.6 | 28.2 | 50% increase | 97.0 | | 2007 | 26.8 | 30.4 | 1.1% increase | 91.4% | | 2008 | 25.0 | 280% increase | 5,500% increase | 92.3 | | 2009 | 31.7 | 23.9 | 133% increase | 80.0 | | 2010 | 43.0 | 40.6 | 23% increase | 85.7 | | 2006-2010 | 34.5 | 26.6% increase | 5,500% increase | 97.0 |
Source: 2010 IW Best Plants Statistical Profile
|
Comentarios