Around these parts, scrap generally goes into an overall metric termed Cost
of Non-Compliance (CoNC), which can include scrap, the cost of reworking
stuff not done right the first time, etc.  All the extra costs get built
into the overhead rate, which then affects the prices you can charge and
overall profit.  I don't think there is really an "acceptable" level of
scrap, but you do reach a point where it is lunacy to try and tweak the
process for that once a year failure.  I have always had a problem in this
respect with the six sigma people.  Easier to think in terms of the higher
the cost, the lower the profit.

Doug Pauls

And Dewey, it does not leave a yacht to be desired.  He just wants to craft
a process so at the ship table, he does not have a boatload of problems.

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