Different Scraps and their effects in SAP PP

There are three types of scraps used in SAP PP

1. Assembly Scrap.
2. Component Scrap
3. Operation Scrap..

Assembly Scrap
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During Production there will be some loss always due to various reasons and due to
this we will get less output than the planned one...for example if planned to
produce a qty of 100 KG we may get around 99.5 KG as the final output or yield..Now
to get the actual output as the planned one we need to increase the planned qty by
some percentage so that we will get the output as per the expectation.. For this we
use Assembly Scrap...

Assembly scrap increases the order quantity of the header material and subsequently
increases the order quantity for corresponding components. The dependent
requirements of the material components are therefore increased correspondingly.

Maintain Assembly Scrap for the Finished Material in the Material Master in
MRP1 View - Assemble Scrap(%) - 5

Create a Production Order for the Finished Material of 100KG for example then the
system automatically takes the quantity as 105 KG and displays the message
"Order quantity 100,000 increased by 5,000 KG due to scrap"

The system first calculates the expected scrap using the percentage defined as
assembly scrap in the material master. It then increases the order quantity by this
percentage rate.

Component Scrap
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Some times a particular component always consumed more during a production process
than the planned one. component scrap only applies to one component. Component
scrap increases the dependent requirements quantity of the component.

Maintain the Component Scrap in the item details of the sub component
Component Scrap(%) - 5 or You can maintain the component scrap in material master
MRP4 view of the sub component.

Create a Production Order then observe the quantity increased automatically for the
sub components in the component overview tab.

Operation Scrap
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During Production process after a particular operation you may get some loss. Now
you need to adjust the qty, standard values and other values of the subsequent
operations. For this Operation scrap is used in production.

You can enter operation scrap (in %) in the routing and in the BOM.
The operation scrap entered in the routing refers to the activity quantity
consumed, while the operation scrap entered in the BOM refers to the material
quantity used. In this case, the net indicator must be turned on.

In Routing Select the operation and click on the control key PP01 and then
maintain(Operation Scrap) Scrap in % - 10
Maintain the Operation Scrap in the item details of the sub component
Operation Scrap in % - 5 and activate the indicator net indicator Net ID

Net ID - Indicator for Net scrap

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This indicator determines whether scrap for the component is calculated on the
basis of the net required quantity (the required quantity without assembly scrap
from the material master record).

Now create Production order for qty 100 KG,now go to the operation overview, Scroll
to right we are able to see operation qty of second operation and third operations
are reduced by 10%... and the system displays the operation qty as 100,90,90