SCRAP, WASTE AND SPOILAGE RELATING TO MATERIAL MANAGEMENT

SCRAP :

                 Discarded material having some value in few cases and which is usually either disposed of with-

                 out further treatment (other than reclamation and handling) or reintroduced into the production 

                 process.

WASTE :

                 Material lost during production or storage due to various factors such as evaporation, chemical                      reaction, contamination, unrecoverable residue, shrinkage etc. and discarded material which may                 or may not have any value.

SPOILAGE : 

                     Production that dose not meet with dimensional or quality standards in such a way that it can                          not be rectified economically and is sold for a disposal value. Net spoilage is the difference                            between costs accumulated up to the point of rejection and the salvage value. 

           This three term basically used in material management. All these three term is an element on cost.

So if we consider these three thing clearly we can make our product more competitive and effective.