Material policy

Scrap Allowance and Yield Policy

Use this article when the quote needs a material policy instead of a generic scrap percentage. It keeps yield, remnant credit, and reuse thresholds visible so the nesting assumption can be reviewed before material cost enters the quote.
Keep the policy tied to the source hierarchy: shop records, supplier invoices, remnant tags, and CAM output. Use the methodology before quoting live work.

Set The Yield Policy

Scrap allowance is a policy, not a public average. The estimator needs to know when sheet value is written off, when a remnant can be reused, and what threshold makes the remaining stock worth keeping.

Scrap allowance and yield policy flow from sheet stock through nesting, remnant credit, and material cost per part

The policy decides how much sheet value stays on the job, how much becomes scrap, and when a remnant returns to stock.

Policy Blocks

Keep the policy in the quote packet:

Policy lineWhat it controlsEvidence to keep
Gross yieldSellable part area divided by the sheet area used.Nesting record, sheet size, and part count.
Scrap allowanceHow much sheet value is expected to be lost on the job.Shop policy, customer rules, and remnant handling note.
Remnant creditWhether an approved remnant lowers the effective material cost.Remnant tag, stock policy, and reviewer approval.
Reuse thresholdWhen a leftover piece is worth keeping instead of scrapping.Minimum usable dimensions and storage rule.
Reject handlingHow damaged or unsellable parts are counted.Quality note, rework policy, and customer requirement.

Decision Tree

Use the policy as a branch, not a guess:

ConditionActionEvidence to keep
Tagged remnant meets reuse threshold and shop policy allows stock returnReturn the remnant to stock and apply credit only once.Remnant tag, storage rule, reviewer approval.
Tagged remnant does not meet the reuse thresholdScrap the leftover sheet value for this job.Minimum geometry note and job release record.
Customer-owned material or contract-specific stock rule appliesFollow the job note and do not auto-credit the remnant.Customer instruction, contract note, and shop policy.
Rejects are unsellable or rework is blockedCount the material as lost for this run.Quality note, rework policy, and scrap log.
Scrap allowance and yield policy decision tree from nesting result to keep, scrap, or return to stock

The policy decides whether the job keeps the sheet value, writes it off, or returns a tagged remnant to stock.

Formula Blocks

Use the simplest equations that match the shop policy:

Gross yield = sellable part area / total sheet area used
Scrap rate = 1 - gross yield
Good parts after reuse = parts sold + approved remnant parts
Effective material cost per good part = (sheet cost - remnant credit) / good parts after reuse
Remnant credit = applied only when a tagged remnant is allowed back into stock

The numbers only work when the same policy is used for the same job family. A public yield claim is not enough.

Keep The Policy Honest

Define these lines once and use them consistently:

  1. Full-sheet stock or remnant stock.
  2. Customer material or purchased stock.
  3. Scrap written off now or deferred to a remnant.
  4. Minimum geometry that still counts as reusable stock.
  5. Who approves the yield rule before a quote is released.

If the job family changes, the policy may need to change too.

What Not To Publish

Do not turn the policy into a public percentage table. Different part mixes, sheet sizes, and reuse rules can change the result enough that a single number becomes misleading.

  • no fixed scrap rate for every job;
  • no universal yield band;
  • no public remnant credit;
  • no public waste benchmark.

The estimator should use the policy to defend a quote, not to promise savings.

Source Boundary

LaserCalc Pro can record the yield policy and run the math, but it cannot invent a scrap allowance that fits every shop. Use shop policy, supplier invoices, remnant tags, CAM output, and completed jobs as the source of truth.

Review Gate

Before material cost enters the quote, confirm:

  • the nesting result matches the quoted revision;
  • the remnant rule is documented;
  • the scrap allowance is written in shop policy;
  • the yield assumption is shared with the quote packet;
  • the per-part price uses the same material basis.

If any of those lines are missing, the material number is still a draft.

Next Step

Carry the same policy into material utilization, laser cutting price per part, how to quote laser cutting, and the full laser cutting calculator.

Policy gate

Keep the yield decision visible

A yield policy is useful when another estimator can see where sheet value is kept, written off, or credited back to a remnant.