Plain-language questions
Ask for scrap rate per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Inventory, purchasing and production
Scrap rate: formula and example.
Scrap rate is the share of all units produced that are rejected and can no longer be used or reworked. Every scrapped product costs material, machine time and labour with no revenue in return. That is why you track the cost of scrap alongside the percentage.
Scrap rate formula
Scrapped units ÷ total units produced (good + scrapped) × 100%
Worked example
In March 2026 Acme Groothandel's packing department produced 52,000 units. Of these, 1,300 were scrapped. The scrap rate is 1,300 ÷ 52,000 × 100% = 2.5%.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A lower rate means less wasted material and capacity. Break it down by product, line and shift to spot patterns, such as more scrap after changeovers. Compare with your own trend and put the cost next to it, because a low rate on an expensive product can cost more than a high rate on a cheap one.
Pitfalls with scrap rate
- Counting reworked products as scrap, or as good, without recording which.
- Not logging scrap during order start-up, which makes the figure look better than it is.
- Reporting only units when the cost per product varies widely.
SQL & DAX
Calculating scrap rate in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT date_trunc('month', po.finished_at) AS month,
p.category,
SUM(po.scrap_qty) AS scrap_units,
ROUND(100.0 * SUM(po.scrap_qty) / NULLIF(SUM(po.good_qty + po.scrap_qty), 0), 2) AS scrap_rate_pct,
SUM(po.scrap_qty * p.unit_cost) AS scrap_cost
FROM production_orders po
JOIN products p ON p.product_id = po.product_id
WHERE po.finished_at IS NOT NULL
GROUP BY 1, 2
ORDER BY 1, 2;Scrap Rate = DIVIDE(SUM(Production[ScrapQty]), SUM(Production[GoodQty]) + SUM(Production[ScrapQty]))
Scrap Cost = SUMX(Production, Production[ScrapQty] * RELATED(Products[UnitCost]))In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate scrap rate?
Divide the number of scrapped units by the total number of units produced, meaning good plus scrapped. Multiply by 100 for a percentage. Use the same unit for both, such as pieces or kilograms.
What is the difference between scrap rate and first pass yield?
Scrap rate only counts what is thrown away for good. First pass yield only counts what is right first time, so reworked products do not count towards it. A process with a lot of rework can have a low scrap rate and still a low first pass yield.
How do you calculate the cost of scrap?
Multiply the number of scrapped units by the cost per unit up to the point of rejection. Add any disposal costs. That shows which products or lines cause the most scrap cost.
Further reading
- KPI libraryInventory and purchasing KPIs: formulasThese KPIs show how much cash is tied up in stock, how reliable suppliers are and how efficiently you produce. The data comes from your ERP, WMS and production records.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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