The formula to calculate the Scrap Percentage (SP) is:
\[ SP = \left( \frac{SM}{TM} \right) \times 100 \]
Where:
Scrap percentage is a measure of the amount of material wasted during a manufacturing process compared to the total amount of material used. It is an important metric for identifying inefficiencies and areas for improvement in production. A lower scrap percentage indicates better material utilization and cost savings, while a higher scrap percentage suggests a need for process optimization.
Let's assume the following values:
Using the formula to calculate the Scrap Percentage:
\[ SP = \left( \frac{50}{1000} \right) \times 100 = 5\% \]
The Scrap Percentage is 5%.