🇦🇪UAE

تكاليف إعادة المعالجة والخردة للمنتجات غير المطابقة (Rework & Scrap Costs for Non-Conforming Materials)

Updated: Feb 20262 verified sources

Definition

Non-conforming materials disposition (rework vs. scrap vs. return to supplier) lacks systematic protocols in most turned products facilities. Per evidence, factory audits verify 'quality control systems'[1] and manufacturers undergo 'on-site inspections'[1]. Delays in disposition decisions lock up working capital; rework orders consume high-cost overtime labor (typical: AED 200–400 per hour for skilled turners); scrap authorization delays waste storage space (AED 50–100/pallet/week). Mechanical products (fasteners) have tighter geometric tolerances, increasing rework failure rates.

Key Findings

Financial Impact: LOGIC Estimate: AED 200,000–600,000 annually. Breakdown: (1) Rework labor: 400–800 excess hours/year × AED 250/hour (including overhead) = AED 100,000–200,000. (2) Scrap material loss: 2–5% of monthly turnover held in non-conforming inventory for 10–30 days = AED 80,000–300,000. (3) Storage/handling: AED 20,000–100,000. (4) Lost sales due to capacity absorbed by rework: AED 50,000–150,000.
Frequency: Continuous; triggered at inspection gates and post-certification reviews
Root Cause: Manual disposition sign-off; unclear escalation logic; lack of real-time SPC (Statistical Process Control) feedback; supplier material variability undetected at inbound QC

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Turned Products and Fastener Manufacturing.

Affected Stakeholders

Quality Inspector, Production Supervisor, Materials Manager, Finance/Cost Accountant

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

فقدان الإنتاجية بسبب عمليات المراجعة والتصرف اليدوية (Capacity Loss from Manual Non-Conformance Disposition)

LOGIC Estimate: AED 250,000–750,000 annually. Calculation: (1) Average non-conformance batches: 8–12 per month = 96–144 per year. (2) Average disposition delay: 4–7 days per batch. (3) Lost throughput per day: AED 2,500–5,000 per line. (4) Estimated annual capacity loss: 384–1,008 idle line-days × AED 2,500–5,000 = AED 960,000–5,040,000. Conservative midpoint applied (30% realization): AED 250,000–750,000.

تكاليف الاختبار المتكررة والفحوصات الإضافية (Repeated Testing & Redundant Inspection Costs)

LOGIC Estimate: AED 80,000–250,000 annually. Breakdown: (1) Redundant testing: 12–20 failed batches/year × 1.5–2 re-test cycles × AED 5,000/cycle = AED 90,000–200,000. (2) Factory re-inspections: 1–2 per year × AED 8,000–15,000 = AED 8,000–30,000. (3) Supplier audits (extra): 2–4 per year × AED 6,000 = AED 12,000–24,000. Total: AED 110,000–254,000.

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