Scrap Factor vs. Scrap Adder
A customer wrote in wanting to know how to plan for scrap. Cetec ERP’s built-in features can help you do that.
Let’s say you know in advance that you’ll always use up more material than is called for on a BOM, and you want to plan for that. Our strong recommendation is to build calculations for this scrap into the permanent BOM revision.
Two of Cetec ERP’s features apply here: “scrap factor” and “scrap adder.” To edit these on a permanent BOM revision, go to the BOM part’s record, click Revisions in the left side menu, and then click on the Edit BOM link.
Scrap Factor
Scrap factor adds to a component’s quantity per top level assembly. Then, on the order, the scrap factor gets multiplied across the build quantity on the order. To illustrate, here’s how scrap factor works into a component’s extended quantity on an order:
ext qty = (qty+scrap factor) * build qty
Here’s how this shows up if you go into the BOM’s part record and click into the BOM Overview screen:
Note: the scrap factor you use may be formatted as a number value OR as a percentage.
If formatted as a number, the equation applied will be as mentioned above:
ext qty = (qty per top + scrap factor) * build qty
If formatted as a percentage, the percentage will first be translated to a decimal, i.e. the scrap factor number before the percentage sign divided by 100. So, a 10% scrap factor becomes 0.10. Then, that translated scrap factor number will be multiplied by the qty per top INSTEAD OF being added to it. Thus, if formatted as a percentage, the equation applied will be:
ext qty = (qty per top * [scrap factor / 100]) * build qty.
Scrap Adder
Once a component’s extended quantity has been calculated using the equation above, the scrap adder value is then added to that extended quantity. In other words, the scrap adder does not get multiplied across an order’s build quantity in the same way that the scrap factor does.
Here’s how scrap adder works into a component’s extended quantity on an order:
ext qty = ((qty+scrap factor)*build qty)) + scrap adder
And here’s how this shows up on the BOM Overview screen:
Note that scrap adder may also be entered as either a number (.25) or a percentage (25%).
Cetec ERP empowers you to keep track of your material needs, including the ability to account for estimated scrap.