SCRAP
REDUCTION
MODEL
Reduction of Scrap Through
Predictive Model
Scrap Reduction Solution
Reduce excess scrap in your manufacturing process with a scrap
prediction solution that allows operators to understand if
machines will run within scrap targets.
INTRODUCTION
Manufacturing scrap is unusable material that is discarded from a manufacturing operation. Scrap can
be divided into several categories while serving as a catch-all term for all rejected material. First, there
is scrap that has been rejected as raw material. It could be due to spoilage, or it could be due to
non-standard performance characteristics like tensile strength or shatter point. This material has not
undergone any additional or partial processing.
The second type of scrap is partially processed scrap. Many manufactured goods are produced in
stages of a manufacturing process, and failure at any stage can result in the part being rejected.
Because the partially finished part has some value-added labour, it is more expensive than scrapping
raw material.
Third, finished goods must be scrapped because they do not meet specifications. Some parts can be
reworked by adding labour to adjust or transform them. Others may necessitate total scrapping if no
rework can be performed.
A decrease in scrap amount of about The global scrap availability will
6% will be able to increase material reach about 1 billion tonnes in 2030
productivity by 0.05%. and 1.3 billion tonnes in 2050.
Source: IOP Sciences Source: World Steel Association
What Causes Scrap in Manufacturing?
Scrap can be caused by a range of factors and is often a result of poor processes. Typically, these
processes inhibit maintenance, setup, tool quality, and training.
All scrap increases cost, and those that require added lab drive those costs up even more. In complex
manufacturing environments, many factors cause scrap and rework, including:
Improper setup Poor equipment maintenance
Poor tool maintenance Poor tool quality
Operator error Training issues
Manual processes Communications errors
Poor design change/specification
Inefficient procedures
management
COMMON CHALLENGES LEADING TO SCRAP
GENERATION
Scrap varies greatly due to under No standardized product
performing shifts and operators specifications
Brand Attribution models can be subject to Differences in the amount of scrap generated between
correlation-based biases when analyzing the lines and shifts could be attributed to differences in the
customer journey, causing it to look like one event manufacturing process's setup and scheduling. Product
causes another, when it may not have. specifications must be defined in logical ways that
account for the major sources of variation.
Outdated equipment
Older machinery for sinewave lines and T-shirt lines
may generate more scrap than newer versions.
NEC’S AI-ENABLED SCRAP REDUCTION SOLUTION
NEC's artificial intelligence solutions for scrap reduction analyze historical and current plant
data to provide comprehensive guidance to your production team. This step toward
autonomous manufacturing enables your employees to eliminate defects and scrap while
minimizing downtime without interrupting production or relying on the availability of external
experts. Accelerated, AI-driven diagnoses of complex failures free up machine builders for
value-add projects like product diversification.
SCRAP REDUCTION
NEC combines scrap reduction analytics with your production management experience to
reduce scrap and material waste throughout your manufacturing process.
Analyze Data Predict Scrap Alert Teams
Analyze live and historical Scrap prediction models are Real-time alerts are generated
production data along with run against live production if projected scrap rates exceed
process data to determine data to project scrap rates if scrap targets so operators or
factors in your manufacturing operators continue with supervisors can quickly act.
process that typically result in current process settings and
high scrap rates or material output.
waste.
BENEFITS OF NEC’S SCRAP REDUCTION SOLUTION
ALLOW FOR A REAL-TIME VIEW OF SCRAP
Allow operators, supervisors, and engineers to understand the
impact of decisions they make during the manufacturing process
by providing a live view of scrap.
REDUCE SCRAP AND REWORK
Reduce scrap and rework by projecting scrap rates in real-time
and adjusting processes across the manufacturing line.
REDUCE MATERIAL WASTE
Reduce material waste by reducing variability in
manufacturing processes and encouraging material usage
efficiency.
INCREASE YOUR PROFITS
Increase your bottom line by eliminating inefficiencies in your
standard operating procedures (SOPs) and notifying operators
when scrap rates reach unprofitable levels.
PREVENT OVERPRODUCTION
To reduce the amount of time spent producing defects, avoid
overproduction by consistently hitting yield targets and
quickly identifying high scrap rates.
HOW SCRAP REDUCTION SOLUTIONS WORK
ANALYZE HISTORICAL PRODUCTION DATA
Machine learning algorithms use data from CAD drawings, machines, and sensors, as well
as quality systems, to create a digital thread of your manufacturing processes. Because
these areas are typically measured differently and at different granularities, scrap is
aligned with process data. Following that, data is formatted for consistency, organized
into a taxonomy, and aligned with metadata such as product, shift, or quality state.
PROJECT SCRAP RATES IN REAL-TIME
Machine learning algorithms analyze real-time production data and perform real-time
calculations to forecast a scrap of a run if operators continue production with the current
process settings and output targets. Predictive scrap analytics can detect excessive material
waste or quality failures before they occur, as well as highlight opportunities for improvement
to improve efficiency and maximize the profitability of each production run.
NOTIFY TEAMS WITH PREDICTIVE ALERTS
When scrap predictions are trending outside of set targets, operators or shift supervisors are
notified, minimizing human error. Engineers or shift supervisors can quickly identify the root
cause of high projections and make real-time adjustments to eliminate scrap before rates rise to
unprofitable levels.
CONTINUOUS LOOP OF PRODUCTION OPTIMIZATION
Even though processes, data, and bills of materials (BOM) change over time, predictive models
must be updated to reflect these changes. Oden's patented platform automates the continuous
evolution of such models, ensuring that projections and recommendations are always accurate
with little lag time. A cloud-edge hybrid solution with a short iteration duration - the amount of
time it takes to build, validate, and deploy new models - allows you to get the most out of your
scrap reduction solution.
Why NEC?
NEC is a leader in the integration of IT and network technologies and brings more than 120
years of expertise in technological innovation to provide solutions for empowering people,
businesses, and society. We possess deep expertise in the design and implementation of
Scrap Reduction solutions for Manufacturing that leverage the most innovative AI and Big
Data techniques including predictive modelling and machine learning (ML) reduce scrap, and
energy costs, and improve prices & quotes for a sharper competitive edge.
Utilizing advanced AI, our Scrap Reduction Solution constantly evolves to help you
eliminate the high cost of carrying extra inventory due to scrap/waste issues. This solution
will help you in keeping production from getting backed up due to re-runs, ensure the
correct parts are in place for a production run, saving costs, which affect the bottom line
and profitability.
Capabilities on Technology Stack
Core business experience combined with domain and technical expertise with evolving tools
and technologies.
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Engineers Architects
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