Standards

I'm facilitating our company's transition to IATF 16949:2016. We are a high volume forger of solid steel components. No assembly. No value add. Just formed chunks of steel. We ship 5+ million parts per month, and internally scrap 20,000 to 40,000 pcs per month because of various quality reasons.

I am hung up on IATF 8.7.1.7 which reads, "For product not meeting requirements, the organization shall verify that the products to be scrapped is rendered unusable prior to disposal."
How can I practically meet this requirement without introducing an entire operation to render these unusable?

Red paint, saw cutting, whacking with a hammer, etc. would all create a huge problem for us. I'm looking for an "out of the box" idea. Thanks for your help.

Perhaps a contract with a recycling company that requires they guarantee destruction by remelting in exchange for a lower price for the scrap? The material would have to be appropriately quarantined prior to transfer to the recycler. You would probably be well advised to audit their controls as well.