In aerospace, scrap is not just a quality KPI. High material costs, long lead times, tight capacity, and fixed-price or long-term contracts mean scrap directly drives margin volatility, delivery risk, and cash exposure. Reducing scrap is less about “looking good on metrics” and more about stabilizing unit economics, capacity, and program-level financial performance.

Sustained scrap reduction in regulated manufacturing requires explicit governance: a cross-functional owner with decision rights, clear targets and standard metrics, formal routines for review and escalation, and tight linkage to quality, CAPA, engineering change, and budgeting. The exact structure depends on site size and maturity, but without defined roles, data ownership, and integration with existing MES/ERP/QMS workflows, initiatives typically revert to one-off projects.