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NetSuite Work Order Yield and Scrap Start Quantity Calculator

If you need 500 good assemblies you cannot start 500. Scrap at each step compounds, so the start quantity on the work order must be higher. This calculator shows the compounding effect and the cost of the allowance, whether you handle it through component yield, an inflated work order quantity or a planned scrap step.

Your numbers

Good quantity required

units

Scrap at step 1

Scrap at step 2

4 %

Scrap at step 3

Cost per unit started

Material plus value added up to the point scrap occurs; use the average.

Your results

Rolled yield

92.7%

Start quantity

540

Rolled yield fraction

0.9267

Extra units to cover scrap

Expected scrap cost

$900

Scrap cost per good unit

Uses average scrap rates and treats each step as independent. Actual scrap varies by lot, tooling and operator.

Free, optional. Reopen it on any device.

Save results:

Start quantity vs step 2 scrap

Sweeps Scrap at step 2 from 0 to 30, holding your other inputs fixed.

Planned versus actual yield review

Optional: we can outline a read-only comparison of BOM yield against completed work order results.

Optional. The tool and every export work without this. No spam.

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How to use it

Enter the good quantity the order must deliver and the scrap percentage at up to three steps, such as cutting, machining and final test. Use measured scrap from recent work order completions and issue-versus-build comparisons, not a guess. The calculator returns the rolled yield, the start quantity and the expected scrap cost. Use the chart to see how a single noisy step inflates the whole order, which helps decide where an improvement project pays back.

The method

Rolled yield is the product of the survival fraction at every step. A 2 percent, 4 percent and 1.5 percent scrap sequence gives 0.98 times 0.96 times 0.985, about 92.7 percent, not 92.5 percent as simple addition suggests. Start quantity is the required good quantity divided by rolled yield, rounded up. Scrap cost is the extra units times their average cost. In NetSuite you can express the allowance through component yield on the BOM or by planning a higher work order quantity, so decide one method and keep it consistent.

Never add scrap percentages, multiply survival rates
Round the start quantity up to whole units
Late-stage scrap costs more than early-stage scrap

Mistakes to avoid

Applying scrap twice is the classic error: once through BOM component yield and again through a higher work order quantity. This overbuys material and distorts variance reports. Another is using one blended scrap rate for all products when only some routings are noisy. Finally, remember lot-size rounding by the supplier: a start quantity of 541 may need to become 550 if material only comes in tens, and the extra goes to stock or the next order.

Frequently Asked Questions

Why not just add the scrap percentages?

Scrap at later steps applies only to units that survived earlier steps. Multiplying survival fractions captures this. For small percentages the difference is minor, but it grows with higher scrap rates and more steps.

Is rolled yield the same as first pass yield?

Rolled throughput yield is the product of first pass yields at each step, which counts rework as a failure. If your steps allow rework back into the flow, use the rate of units that become good without rework for a stricter view.

Where should the scrap allowance live in NetSuite?

Pick one place, such as the component yield on the BOM revision, or a planned quantity on the work order, and document it. Using several mechanisms at once is the most common cause of overstated material requirements.

Does this work for process manufacturing?

The yield math applies, but process flows often have by-products and variable yields tied to batch size or formulation. Use it as a first estimate and adapt for co-products.

Netray can compare planned yield against actual work order completions and scrap in your NetSuite data so allowances reflect what the shop floor really does.

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