Scrap re-use is generally a requirement in Plastic Manufacturing to improve yield. Microsoft’s ERP system, Dynamics AX (aka, Dynamics 365) has handled both discrete and process manufacturing for years (and, mixed mode manufacturing) which means that scrap can be accounted for, re-used, and costed accurately in the same production order.
In a previous blog post (Microsoft Dynamics AX 2012 R3 CU8 – Recycled By-Products in Production Orders), we show how Dynamics AX can be configured using by-products, standard costing and burden to enable scrap to be re-used within the same production order if required. Although the blog only mentions AX 2012, the same functionality is available in Dynamics 365 for Operations.
For an even deeper dive, the following blog written by Microsoft provides more costing details on how scrap is handled in Dynamics AX: