What is planned scrap in SAP PP - Production Planning and Control?

SAP Term: planned scrap

• Component: PP

• Component Name: Production Planning and Control

• Description: The scrap planned to result from manufacturing a product. The planned scrap can be component-based or operation-based. The component scrap is defined in the BOM and defines how much scrap is expected for mounting the assembly. Operation scrap is defined in the routing. During scheduling of the routing the "scrap factor" is calculated using all operations in a routing and then written to the material master record.

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• Key Concepts: 
  Planned scrap is a type of scrap that is planned and accounted for in the production process. It is a form of waste that is expected to occur during the production process and is taken into account when calculating the cost of production. It is also known as “allowable scrap” or “anticipated scrap”.
  
  How to use it: 
  In SAP Production Planning and Control (PP), planned scrap can be used to calculate the cost of production. The planned scrap rate can be set in the material master record, and this rate will be used to calculate the cost of production. The planned scrap rate can also be adjusted in the production order, if necessary.
  
  Tips & Tricks: 
  When setting the planned scrap rate, it is important to consider the type of product being produced and the expected amount of waste that will occur during production. It is also important to consider any potential changes in the production process that could affect the amount of waste produced.
  
  Related Information: 
  In SAP PP, planned scrap can be used in conjunction with other types of waste, such as unplanned scrap and rework, to calculate the total cost of production. Additionally, planned scrap can be used to monitor and control the amount of waste produced during production.