Chapter 2: Downsizing the Hidden Factory Available to Purchase

The hidden factory refers to the activities associated with scrap and rework. This chapter presents a rudimentary understanding of what sorts of things the hidden factory is doing, focusing on how to get one's arms around the rejections that occur most frequently or have the highest cost. It provides information on the use of Pareto analyses from both frequency-of-occurrence and cost perspectives to target specific areas for improvement.