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Rework & Scrap Cost per Unit

Purpose -

Helps minimize losses from defective production.

Operational Definition -

(Total Rework & Scrap Cost / Total Units Produced)

Type of Metrics -

KPI

Function -

Finance

Associate Function -

Finance

Desired Trend -

Lower the better

Recommended Frequency - 

Monthly

External References -

https://safetyculture.com/topics/quality-metrics/

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