Free Material Waste calculator with clear step-by-step results.
Separates gross waste from net waste, since recovered offcuts re-enter the process and should not be counted as loss. The total cost of waste is then both the purchase value of the material that never reached the product and the fee to dispose of it - the second cost being the one usually overlooked.
Net waste
Net waste = ordered - in product - recovered for reuse
Total cost
Cost = net waste x material price + net waste tonnes x disposal cost
You pay to buy the material and again to take it away. On low-value bulk material with a high gate fee, the disposal side can approach the purchase cost.
It depends entirely on process - sheet nesting can exceed 90%, while machining from billet may be under 40%. Track the trend rather than the absolute number.