Optimizing Scrap Management And Utilization Strategies In Automobile Component Manufacturing: An Empirical Study

Abstract

This Research Investigates The Scrap Management And Utilization Strategies Adopted In An Automobile Component Manufacturing Plant, Focusing On Identifying Systemic Inefficiencies, Evaluating Employee Perceptions, And Validating The Financial Impact Of Optimization Interventions. A Structured Questionnaire Was Administered To 139 Employees Across Multiple Departments. Descriptive Percentage Analysis, Pareto Analysis, And A Paired-Samples T-Test Using IBM SPSS Were Employed To Analyze The Data. Findings Reveal That Poorly Segregated Mixed Scrap And Oversized Loose Scrap Collectively Account For Approximately 99.9% Of Total Scrap Tonnage. The Implementation Of Optimized Nesting Layouts And High-density Baling Workflows Produced A Statistically Significant Reduction In Monthly Scrap Costs (mean Reduction: ₹28.98 Lakhs Per Production Line; T(4) = 10.130, P = 0.00053). The Study Provides Actionable Recommendations Including Source-level Segregation, IoT-based Tracking, Structured Employee Incentive Programs, And Design-for-manufacturability Initiatives.

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