Scrap Factor
A percentage factor that compensates for expected loss of a component during manufacturing by increasing the gross requirements. The scrap factor, entered on the Job Materials form, could contain a maximum decimal quantity of 0.9999. The scrap factor is job specific.
You can determine scrap factor by evaluating historical records that show the amount of scrap reported at the job item level. Use the Job Transactions Report to show historical scrap reported against specific jobs.
Various functions in the manufacturing modules use the scrap factor to calculate material requirements. The intent of the calculation is to arrive at a total quantity required that would result in the actual number of good pieces needed after expected scrap. The quantity required of the material is divided by (1 - scrap factor) to arrive at this number:
Total Qty Required = Qty Required / (1 - Scrap Factor)