SCIIL SCRAP module: Transparency of rejects and effective chargeback to suppliers
Digitalization of scrap recording and root cause analysis in the assembly line: How an automotive supplier regained control over the causes of scrap with SCIIL SCRAP, identified internal weaknesses and consistently charged back supplier costs.
Project costs: approx. 28,000 € (licenses + services)
Implementation: 3 months (kick-off to go-live)
Case Study Duration: 18 months
Savings шт 18 months: >€ 120,000 in
ROI: less than 6 months
High committee costs, little transparency
In assembly lines with low production depth, rejects and defective components are produced every day – caused by internal factors (product design, process errors) or external causes (defective supplier parts). Although scrap is documented in many plants, it is usually incomplete, paper-based or separated by area.
The digitalization of scrap recording and root cause analysis in the assembly line was therefore urgently needed. This is because tracking via paper lists and subsequent ERP recording delays any reaction – systematic errors remain undetected for too long. The result: a lack of transparency along the line, high reworking costs and no reliable data for supplier complaints.
One of our customer’s plants – a Tier 1 supplier – was facing precisely these challenges. Increasing quality costs, high manual rework costs and a lack of evidence of chargebacks made the project a priority.
The solution: SCIIL SCRAP
Consistent scrap detection & real-time response
SCIIL SCRAP for holistic, digital recording and evaluation of all reject parts and causes.
ERP interface (e.g. SAP):
Import of parts lists, components, prices – Automatic feedback incl. error categorization
Traceability & analysis:
Cause-based data analyses at the touch of a button – without post-processing
Live dashboards & alerts:
Real-time visualization of quantities, costs, causes – including automatic notifications from the threshold value
This gives production and quality managers full transparency, allowing them to identify causes immediately and respond directly. The display on the live dashboard motivates the teams to take the initiative. Automatic email notifications shorten response times and measures take effect more quickly.
Savings through elimination of internal causes:
30T€ in 9 months
After the rollout in two lines, the internal scrap costs fell noticeably and the software investment was amortized simply by eliminating the internal causes.
Product design was identified as the main cause and improved
Further advantages:
- Reduced workload for staff: no manual data post-processing
- Real-time dashboards sharpen awareness
- Decrease in internal errors (transport damage, installation errors)
- Early detection of problems and elimination of causes
Savings through chargebacks to suppliers:
85T€ in 18 months
Rejects are recorded digitally via a PC with touchscreen, scanner or mobile device. Employees can easily operate it on the side. Supplier allocation is automatic – proof of chargebacks is available immediately.
The chargeback thus became a fixed routine. Noticeable savings followed immediately – after 18 months, around € 85,000 was charged.