Track and manage scrapped materials with iFactory's comprehensive waste management system. Monitor disposal methods, environmental impact, hazardous waste, and recovery rates – reduce waste costs by 35% and ensure full EHS compliance.
Scrap by Reason Code
From logging scrapped materials to final disposal, iFactory tracks every step with EHS approval, cost analysis, and full regulatory compliance.
Record scrap with work order, material, and reason code.
Calculate total value, recovery potential, and net loss.
EHS and manager approval with environmental clearance.
Recycle, landfill, incinerate, resale, or return to vendor.
Root cause trends, cost analysis, and waste reduction KPIs.
Record scrapped materials directly from work orders with comprehensive tracking. Link to specific jobs, materials, and assets. Document the root cause with predefined reason codes for complete traceability, trending, and root cause analysis.
Connect scrap to specific work orders for job costing.
Select from inventory catalog to track what was scrapped.
Defective, expired, damaged, obsolete, contaminated.
Document root cause to prevent future occurrences.
Create New Work Order Scrap
Track the full financial impact of scrapped materials. Calculate total value, recovery potential from recycling or salvage, disposition costs, and net loss automatically. Optimize your disposal strategy to maximize recovery rates.
Quantity × Unit Cost calculated automatically.
Track salvage, recycling, and resale revenue.
Record disposal fees, transport, and handling costs.
Total Value – Recovery + Disposition = Net Loss.
Track how scrapped materials are disposed of. Record disposition methods, locations, dates, transporter details, and EPA waste manifest numbers for complete regulatory compliance and chain-of-custody documentation.
Recycle, landfill, incineration, resale, vendor return.
EPA manifest tracking for hazardous waste compliance.
Document waste transporters for chain of custody.
Attach certificates for regulatory proof and audits.
Available Disposition Methods
Implement approval workflows for scrap disposal. Track approval status, assign approvers, document comments, and ensure Environmental, Health & Safety compliance before any material is disposed. Require environmental clearance and EHS sign-off for hazardous materials.
Pending, Approved, Rejected with complete audit trail.
Toggle for environmental clearance requirement.
Require EHS team approval for hazardous materials.
Attach photos for visual verification and records.
Compliance Flags
Automatically deduct scrapped materials from inventory with full audit trail. Track vendor returns for credit, replacement, or warranty claims. Ensure stock records always reflect accurate available quantities across all locations.
Stock levels update automatically when scrap is logged.
Track returns for credit, replacement, or warranty.
Every scrap event timestamped, user-tagged, auditable.
Identify equipment with highest scrap generation.
Scrap → Inventory Impact
Vendor Returns
Analyze scrap data across reason codes, assets, work orders, and time periods. Identify recurring root causes, track waste reduction progress, and measure recovery rates to continuously improve your scrap management performance.
Identify top scrap reasons over any time period.
Pinpoint equipment generating the most waste.
Monitor recovery % to optimize disposal strategy.
PDF, Excel, CSV reports for audits and management.
Monthly Scrap Cost Trend
Top Scrap-Generating Assets
Scrap management integrates seamlessly with work orders, inventory, assets, and EHS for a unified waste management layer across your operations.
Link scrap to jobs
Auto stock updates
Track scrap rates
Safety compliance
Waste cost reports
Vendor returns
Whether you manage metal offcuts, chemical waste, expired materials, or defective components – iFactory adapts to your industry's unique waste tracking requirements.
Stamping scrap, defective castings, paint waste, rework parts.
Expired drugs, bio-waste, contaminated batch disposal.
Expired ingredients, off-spec batches, packaging waste.
Metal offcuts, slag, mill scale, scrap steel recycling revenue.
Hazardous waste, solvent disposal, EPA manifest tracking.
Transformer oil, insulation waste, spent batteries, e-waste.
PCB scrap, component rejects, solder dross, WEEE compliance.
Composite offcuts, titanium scrap, serialized part disposal.
Root cause analysis and corrective actions prevent recurring scrap.
Maximize recycling, salvage, and vendor return revenue.
Approval workflows and manifests ensure regulatory compliance.
Every scrap event linked to work orders, assets, and disposal.
Everything you need to know about iFactory's Scraps Inventory Management capabilities.
Regular Inventory (Parts and Stocks) tracks usable materials available for maintenance work. Scraps tracks materials identified as unusable – defective parts, expired materials, damaged goods, or obsolete items. Scraps are linked to work orders to understand where waste occurs, tracked for financial impact, and managed through disposal workflows to ensure proper handling and compliance.
Scrap Reason Codes are predefined categories that explain why materials were scrapped. Common codes include Defective Part, Expired, Damaged in Transit, Damaged in Storage, Obsolete, Wrong Part Ordered, Contaminated, and Warranty Return. These codes enable trending and analysis to identify recurring issues and implement preventive measures to reduce future scrap generation.
When scrap is logged, it enters a Pending status. An assigned approver reviews the scrap details, disposition method, and supporting documentation. They can Approve or Reject with comments. For hazardous materials or high-value items, additional flags like Environmental Clearance and EHS Approval can be required before final approval, ensuring proper oversight and compliance.
A Waste Manifest Number is a tracking document required by EPA for transporting hazardous waste. It tracks the waste from your facility (generator) through transportation to the final disposal site. iFactory lets you record manifest numbers for each scrap entry to maintain regulatory compliance and prove proper disposal during environmental audits.
Recovery Rate = (Recovery Value ÷ Total Value) × 100%. It measures how much value you recover from scrapped materials through recycling, resale, or salvage. A higher recovery rate means less net loss. iFactory tracks this metric across all scrap entries and displays the average recovery rate on your dashboard to help optimize your disposal strategy.
Yes, when scrap is logged and approved in iFactory, inventory levels are automatically deducted with a full audit trail. The system records the exact quantity removed, the work order reference, the reason code, and the user who performed the action. This ensures stock records always reflect accurate available quantities across all locations.
Yes, iFactory's “Return to Vendor” disposition method allows you to track parts sent back to suppliers for credit, replacement, or warranty claims. The system records the vendor, return date, expected credit amount, and links to the original purchase order. This helps you recover costs and hold suppliers accountable for defective materials.
Most teams start logging scrap within the first week. Basic setup including reason codes, disposal methods, and approval workflows completes in 1–2 weeks. Full implementation with EHS workflows, EPA manifest tracking, vendor return processes, and analytics dashboards takes 3–4 weeks. Teams become proficient within 1–2 hours of training.
Track scrapped materials, ensure EHS compliance, and maximize recovery value. Schedule a free 30-minute demo.