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7/7/2015 Calculatingamaterialwastefactor
http://www.woodweb.com/knowledge_base/Calculating_a_material_waste_factor.html 1/3
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CalculatingamaterialwastefactorHowtodetermineawastagefactortobeappliedwhenpricingwork.November29,2000
QuestionHowcanIcalculatethecorrectscrapratiowithpanelsandbeabletogetapercentageratioinordertoaddontothepricingofmycabinets?
ForumResponsesThatwillvaryfromshoptoshopandjobtojob.Keepingtrackofyourjobswillbetheonlywaytoknow.IuseExcelforcoststracking,setupaspreadsheetandeveryjobIdo,notehowmanysheetswereusedandhowmanysquarefeetofpanelswereactuallyneeded.Takethedifferenceanddivideitbytheactualpanelsquarefeet.Thatwillbethepercentagetoadd.
Ifyoufigureyouneed291squarefeetofpanelsanduse10fullsheets,youwouldneedtoadd10%to291toget320.
Itsalsogoodtomakenotesofeachjobsoyoucantellifitwasasimplejoboralloddsizesforfuturereference.Itmayseemlikeitwilltakeawhiletogetenoughinfo,butitaddsupfasterthanyouthink.
Thelastpostisonthemark,butneedstoputanothershotintothe
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7/7/2015 Calculatingamaterialwastefactor
http://www.woodweb.com/knowledge_base/Calculating_a_material_waste_factor.html 2/3
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bullseye.
Youalsoneedtocalculatetheamountoftimetopickupanddisposeofthescrap,andyourtippingfeesbypercentageofscrap.Thosefiguresneedtobeaddedintogetatruescrapratiocost.
Somecompaniesoptoincludethemas"housecleaning"and"disposalfee"ontheirspreadsheet.Evenwiththesecosts,whichthengenerallyfigureintooverhead,youstillneedtohaveatrackingtofindeitheranaverageorapercentagethatyoucanuse.
Ifyou'readdingonapercentagetoyournetmaterialrequirementforcosting,don'tadda"waste"factororyou'llbemakingamistakeIseelotsofguysdo.Ifyourwastefactoris20%,25%,30%,35%,40%,45%,or50%,add26,34,44,55,67,82,and100percentrespectively,toyournetmaterialrequirementtogetyouractualmaterialcosts.
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