Dispositioning Scrap Material Back Into Inventory

T

ttwerp65 - 2009

#1
I am trying to find out if anyone has had any negative experiences putting scrap raw material back into inventory. We are at this time cutting a corner out or something similar to change its original function. Some of the parts we do are quite large and the material can be used for smaller product. I am especially interested in hearing from companys with AS9100. :thanx:
 
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Wes Bucey

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#3
May I suggest (no pressure) that an organization dealing with bar, sheet, or plate stock would be well served to determine if the economics are worthwhile and to be sure you are not committing a fraud on the customer by charging him for the large piece of material, claiming the "drop" as scrap and then using the drop as prime material for a second customer who also gets charged prime material price.

If, however, all customers are aware of your practice and acquiesce, then merely keep records of the drops and the material certs from the original lots and omit the word "scrap" from the transaction.
 
P

potdar

#4
I might add that what Wes suggests is for future practice. Any material that has already reached the scrap yard, you are unlikely to have maintained identification and traceability. It may not now be worth getting each piece tested and certified separately, and then again your customer is most likely to refuse accepting it.
 
#5
We produce stainless steel, and our largest raw material source (by far) is... scrap. Wes says it well: As long as the paperwork is in order: No problem. Recycling is a good thing :agree1:

/Claes
 
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