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AI agent for plant managers

Scrap and Rework Cost Review Agent

Scrap and rework are valued by true cause and the top causes are addressed with evidence

Scrap and Rework Cost Review Agent: what goes in, what the agent does and what you get

What it does

Scrap costs are known in total but not by cause, so fixes are guesses. Every week this agent groups scrap and rework by line, product and cause code and values them with standard costs. It checks the coding quality, such as too many entries under 'other' or causes that do not fit the line. Doubtful coding is sent back to the supervisors and the numbers are recalculated. It traces the top causes to records such as machine logs and material lots. It proposes actions and later checks whether the scrap dropped. The manager approves actions. Edge case: one line puts 40 percent of scrap under 'other', so the agent recodes only after the supervisor confirms.

How it works

Follow the arrows from top to bottom. The orange dashed arrow is the loop: when a check fails, the agent goes back and tries again.

Start and resultWhat it doesA check on its own workWaits for your OKGoes back and retries
Yes, continueApprovedYes, continueNoNo 1 STARTS WHEN Week closes 2 USES A TOOL Load scrap and rework records 3 DOES Group by line, product and cause and value them 4 CHECKS THE RESULT Is the coding good enough? If not: send doubtful entries to supervisors andrecalculate with their answers. Back to step 3. 5 DOES Rank causes by cost 6 USES A TOOL Trace top causes to machine and material records 7 DOES Propose actions for the top causes 8 YOU APPROVE Manager approves actions 9 USES A TOOL Measure scrap in the following weeks 10 CHECKS THE RESULT Did scrap for that cause fall? If not: propose a second action and retest. Back to step7. 11 RESULT Scrap review filed
Read the steps as a list
  1. Week closes
  2. Load scrap and rework records
  3. Group by line, product and cause and value them
  4. Is the coding good enough?If not: send doubtful entries to supervisors and recalculate with their answers. Back to step 3.
  5. Rank causes by cost
  6. Trace top causes to machine and material records
  7. Propose actions for the top causes
  8. Manager approves actionsThe agent waits here for your OK.
  9. Measure scrap in the following weeks
  10. Did scrap for that cause fall?If not: propose a second action and retest. Back to step 7.
  11. Scrap review filed

How it decides

Coding is accepted when 'other' stays under the limit and the causes fit the line. The agent ranks causes by cost, not count.

  • Accept 'other' under 10 percent of scrap
  • Value at standard cost
  • Trace causes that exceed 15 percent of total cost
  • Judge an action after 3 weeks

Make it yours

Every agent is a starting point. You choose these settings for your own situation.

  • Cause code limit (default 10 percent)
  • Cost basis
  • Action review period (default 3 weeks)
  • Lines covered

What keeps you in control

It always asks you first

  • Actions

Hard limits

  • Never change records on its own
  • Never assign blame to individuals

It stops when

  • Done: top causes addressed and measured
  • Stop: records are missing for the week

Set it up

We guide you through the set-up, step by step

Members get the full set-up guide for this agent. No technical skills needed: you copy, paste and upload.

10 minto set it up in your AI
5 AIsChatGPT, Claude, Copilot, Gemini, Grok
  • One set of instructions to paste into your AI, with the clicks for ChatGPT, Claude, Microsoft 365 Copilot, Gemini and Grok
  • The agent then walks you through connecting your own data, one source at a time
  • A downloadable copy with the flow chart, the rules and the full guide
Get access to this agent

An example run

What happensOn line 2 the 'other' code held 38 percent of $21,000 weekly scrap. The coding check failed. Supervisors recoded most to label misprints. The agent traced misprints to roll 5 changes. The manager approved a changeover check. Three weeks later the scrap on that cause fell from $6,500 to $2,100.

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