Create a material balance
Choose a consistent unit such as kilograms, square metres, sheets, or linear metres. For each run, record opening usable stock plus receipts, material used in accepted output, separately recoverable scrap, and closing usable stock. The unexplained balance is the first signal to investigate.
Do not mix trim that is credited by a recycler with contaminated waste or inventory-count error. Those categories have different financial and environmental actions.
Attach a cause to loss
Tag setup sheets, print or cut defects, changeover remnants, damaged stock, design trim, overproduction, and unexplained variance. Pareto the cost, not only the quantity, because high-spec material can make a small loss expensive.
Run one controlled improvement at a time: nesting change, setup standard, incoming inspection, storage protection, or operator instruction. Compare yield over enough runs to separate the change from normal variation.
- Use standard output quantity and material specification.
- Keep rework from being counted twice.
- Verify scales and inventory adjustments.
Turn yield into money
Multiply net waste by the relevant material cost and subtract real scrap recovery. Add disposal, downtime, and replacement freight if they change. This produces a savings ceiling against which tooling or process investment can be judged.
Working checklist
- ✓ Common measurement unit
- ✓ Opening and closing stock
- ✓ Good-output usage
- ✓ Recoverable scrap
- ✓ Waste cause
- ✓ Net cost and improvement owner