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Tracking and Reducing Scrap with GoSmarter

This guide is designed for production managers, shop supervisors, and continuous improvement teams focusing on minimising scrap and waste in the manufacturing process. Learn how to use GoSmarter’s Scrap Calculator, Scrap Logger, and Offcut Manager to reduce costs, improve sustainability, and drive data-driven process improvements.

Overview

Why Scrap Reduction Matters

Every bit of scrap represents:

  • Lost money - Wasted material cost plus labor spent processing it
  • Environmental impact - Unnecessary production, energy use, and CO2 emissions
  • Inefficiency - Opportunities for process improvement
  • Competitive disadvantage - Higher costs vs. competitors with lower waste

Real Results: In a trial, Midland Steel reduced scrap rates by 50% using GoSmarter’s planning optimisation tools. This directly improved profitability and sustainability.

How GoSmarter Helps

GoSmarter provides comprehensive scrap management tools:

  • Scrap Logger - Record and categorise all waste
  • Scrap Calculator - Assess the financial impact of improving scrap rates
  • Inventory Offcut Manager - Reusable remnants are first-class citizens to prevent waste
  • Production Planning Integration - Optimise cuts to minimise scrap automatically

This guide shows you how to log scrap, analyse it, and use that data to take action that reduces waste.

Cost Savings & Sustainability

Reducing scrap directly improves your bottom line and environmental footprint. GoSmarter makes scrap reduction a measurable, data-driven process rather than guesswork.

Logging Scrap and Offcuts

Recording Scrap After Production

At the end of each production run or cutting session, log the scrap produced:

  1. Navigate to Production → Scrap
  2. Click + Add entry
  3. Fill in the scrap entry form:
    • Date/Time - When scrap was produced/measured
    • bin/Skip reference - Where the scrap is
    • Opening weight - The bin weight before the latest batch of scrap
    • Closing weight - The bin weight including the latest batch of scrap
  4. Click Save

Real-Time Logging

Update scrap data immediately after each job (via tablet on shop floor if possible). This keeps data current and ensures nothing is forgotten. Regular logging builds a comprehensive dataset for analysis.

Managing offcuts in inventory

Not all remnants are waste - many can be reused. Tracking offcuts in inventory helps you track reusable pieces:

  1. After a cutting operation, identify usable offcuts (pieces long/large enough for future use)
  2. Navigate to Production planning → Inventory
  3. Identify the relevant inventory item the offcut is from
  4. If the offcut is the remainder of the inventory, edit the item and chane the type to “Offcut” and update the new dimensions
  5. If only part of the inventory item was used to make an offcut, Split the original item and say what quantity or weight was originally picked to make the cut. This discounts the original inventory item and creates a new offcut item with the remaining quantity or weight. You can then edit the properties to reflect the new dimensions of the offcut.

The offcut is now available in your inventory for future orders requiring shorter lengths.

Example: Managing Rebar Offcuts

You cut 10 x 12m rebar bars into 10m pieces for an order:

Instead of scrapping the 2m pieces:

  1. Add to Offcut Manager: 10 pieces, 2m long, grade B500C, 12mm diameter
  2. Link to original heat’s certificate
  3. Store in designated offcut area
  4. Later, when an order needs 1.5m pieces, these offcuts can be used

Result: What would have been 20m of scrap becomes useful inventory, reducing both waste and future material costs.

Reuse = Waste Reduction

Systematically tracking and reusing offcuts can reduce scrap by 10-20% in typical operations. GoSmarter ensures these remnants don’t get lost or forgotten.