What it measures
% of material scrapped during production
it measures material that has already been destroyed. The P&L impact is locked in the moment the scrap is generated, and the KPI only confirms the scale of the loss after the fact.
Business impact
- Increased 'chaos tax': high scrap rates consume line capacity that could be making finished goods, forcing unplanned overtime or weekend runs to meet demand and driving up labor costs.
- Direct destruction of working capital: every tonne of scrap is purchased raw material that must be stored, handled, and then paid for again to be disposed of, turning inventory into a liability.
- Sustained high scrap rates inflate Cost of Goods Sold, making product pricing uncompetitive. This puts the business in the delisting zone where retailers seek lower-cost suppliers to protect category margins.
Formula
(Scrap weight / Total material used) x 100Grain
One row per production order batch — material × plant × production line × shift × date
Inside the Implementation Pack
A preview of what's actually built for this KPI — extracted from the real Implementation Pack, not a mockup.
This is the primary ratio the pack's other measures build on — trend, rank, and period-comparison variants, all on Fact_Production_Order_Batch.
Fact_Production_Order_Batch— 9 mandatory columns — production line key, scrap weight kg, ...Dim_Material— material_key + material_descriptionDim_Plant— key + nameDim_Product— key + nameDim_Production_Line— key + nameDim_Recipe— key + nameDim_Shift— key + nameDim_Date— Auto-generated calendar table — no customer data required
Full field-by-field data contract, in 4 SQL dialects (SQL Server, Snowflake, Databricks, BigQuery), ships in the pack.
| Target | 0.01 — performance considered compliant at or below this line |
| Warning | 0.03 — amber alert — triggers a review |
Both live in one Excel tab — change them, refresh the report, done. No DAX editing needed.
Everything you need to build Scrap Rate in Power BI — dimensional model, DAX measures, SQL views, and a food-industry demo dataset.