What it shows
The part of classified internal failure cost that is recoverable (rework, downgrade, regrading, re-blending, repair) rather than lost (scrap, destruction, write-off). Uncategorized sets, such as investigations or stoppages, are left out.
Why it matters in manufacturing
Scrapped material loses its full value; reworked material keeps part of it. The rate shows how much of your internal failure you can still win back, and where better disposition decisions would pay.
How to read it
Higher is better. The tag compares with the same period last year in percentage points. Read it with the internal failure cost itself: a higher salvage rate on rising failure cost still means more failure.
What good looks like
A high and rising rate: most failed material is recovered by rework, regrading or re-blending, and little is scrapped.