What is your REAL scrap rate ?

Richard Webster

Scrap rates are simply the difference between the polymer purchased and the weight of polymer shipped as saleable product.  Typically this is as much as 10%, although when questioned about scrap rates companies reported to us the figures they want to talk about - such as customer reject rates of 4.5ppm.

Scrap rates significantly affect the profitability of your business. 

Take a small moulder with sales of £5M, a net profit of 5% on sales yields £250,000.  Up to half of the moulders revenue could be on raw materials (£2,500,000) and with a scrap rate of 10% plus the cost of generating this scrap could result in a total cost of £350,000.  If a 50% reduction in scrap could be realised, this not only reduces the cost of scrap by £175,000 it also increases the net profit by 70%. 

There is no reason why it couldn’t be more, but to achieve anything requires a change in the way the business operates – it needs more knowledge. 

Would you agree that it could be worth giving us some of your time to show you how we could achieve this for you ?

If you don’t train your staff – you are willingly paying them to ruin your business.

The first reaction is normally along the lines of “…what if I train my staff and they leave?” but what you should really consider is what will happen if you DON’T train them and they stay?

If you are serious about improving the skills of your production workforce, ask yourself a few questions:-

–             What training methods have you used in the past?

–             Were any of these methods effective?

–             What metrics were used to measure their effectiveness?

Training needs to be structured and continuous in order to be effective, it should also be made available to all your employees as this will give you the largest pool of staff to choose from for advancement – we all know how difficult it is to recruit the right talent, don’t we ?

Company-wide training creates a team that will want to improve the business and as a result improves the teams future wealth.  Our training will take approximately 9 months to undertake, incorporating on-line and on-the-job tasks to produce a fully upskilled workforce.  More importantly it will be based at your site, using your machines, your moulds and your materials – so it is 100% relative to your business.  We can train everyone from the store person and materials handlers to your process engineers and technicians.  We have been doing it very successfully for many years.

The cost is about £600 per person but the return on this investment will be significantly greater.

Call us 01952 815705 or email sales@plastic-it.co.uk for more information