Material optimization & job costing — Price jobs from the real cutting plan, not a waste guess
Material optimization works out how to cut sheets, bars or rolls for an order with the least waste. Job costing then prices the job from that plan and checks it against what the shop floor actually used. It suits fabricators who quote with a flat waste percentage and only find out later if it was right.
By Julia Ja, Owner
Job 3315 · planned vs actual
Bracket order · 10-ga steel| Cost | Planned | Actual |
|---|---|---|
| Steel sheets | 2 + 1 offcut | 2 + 1 offcut |
| Laser time | 1.8 hrs | 2.1 hrs |
| Bending | 2.5 hrs | 2.4 hrs |
| Material cost | $318 | $318 |
The quote was priced from the cutting plan. The operator confirmed the sheets cut on a tablet after the run.
Why it matters
The problem it solves
Most fabricators price material with one waste percentage on every job. It's quick, but many small parts nest very differently from one large part, and the flat rate hides that.
The cost shows up later, if at all. Easy jobs lose to cheaper quotes, awkward ones eat the margin, and offcuts pile up in a corner with nobody sure what's there.
Example · illustrative
A sheet metal shop quoting a bracket order
- On Monday a customer asks for 40 steel brackets and 12 mounting plates in 10-gauge steel.
- The estimator enters the parts, and the nesting software lays them onto two full sheets and one offcut from last week.
- The quote uses that plan, plus laser time and bending at the shop's rates.
- After the run, the operator confirms on a tablet which sheets were cut, and the job shows planned and actual material side by side.
How it works
How material optimization & job costing works
- Starts whenAn order or quote request lists the pieces and sizes needed
- 1Step 1Collect the piecesSizes, quantities and material come from the order, the quote request or the job file.
- 2Step 2Build the cutting planOptimization software lays the pieces onto stock sizes to use the least material, including usable offcuts.
- 3Step 3Price the jobMaterial cost comes from the plan, plus labor, machine time and the business's own rates.
- A person decidesApprove the quoteThe estimator or owner checks the price and changes anything before it goes to the customer.
- 5Step 5Compare actual useAfter production, the material and time actually used are read back and compared with the plan for that job.
Before · by hand
- Material is priced with the same waste percentage on every job.
- Simple jobs are overpriced and awkward ones lose money.
- Nobody knows which jobs made money until month end, if then.
- Offcuts pile up with no record of size or material.
With material optimization & job costing
- Each quote uses the material the cutting plan actually needs.
- Usable offcuts are logged and offered to the next plan.
- Actual use is compared with the plan for every job.
- The owner sees which job types and customers earn their margin.
What we build
The parts of material optimization & job costing
Your systems
- QuickBooks Online
- Xero
- NetSuite
- Google Drive
- Microsoft 365
- Airtable
What we build
1Order and part intake
Pulls sizes, quantities and material from the quote request, order or parts list, so the estimator doesn't retype them.
2Optimization connection
Sends the parts to your cutting or nesting software, or one we add, and reads back the plan and the stock it needs.
3Costing rules
Your material prices, labor and machine rates and markups, applied to the plan to build the job price.
4Offcut register
A list of usable remnants with size, material and location, which the next plan tries before opening new stock.
5Planned vs actual report
Compares material and time used with the plan for each job, and rolls the results up by job type and customer.
Your team decides
- The estimator or owner approves every price before it reaches the customer.
- Operators can still change a cut on the floor, and the actual result is what gets recorded.
- The owner sets markups and decides what counts as a usable offcut.
Industries it fits
What material optimization & job costing looks like in each industry
Glass processing & fabrication
Glass sizes for an order are nested onto stock sheets, and the job file goes to the cutting table. Remnant sheets go back on the rack with their size logged, and the next order checks them first.
Glass Cutting Optimization and Job Costing for FabricatorsYour industry isn’t listed, or works differently? Describe it and get an answer in a minute.
Getting started
What you need first
We go through these with you in the audit, before anything is built.
Before we start
5 things to have ready- Your stock sizes, current material costs and how often those costs change.
- Labor and machine rates, markups and any minimum charges you apply.
- Cutting or nesting software, or a decision to add one, plus access to its files or exports.
- A way to record what was actually used: a machine report, an export, or operators confirming on a tablet.
- A rule for what counts as a usable offcut.
How a rollout runs
- 1Review past jobsWe look at recent quotes, what those jobs actually used, and how the estimator prices material today.
- 2Connect the optimizerWe link intake to your cutting or nesting software and check that its plans match what the floor would cut.
- 3Set the costing rulesWe enter material, labor and machine rates and markups, then price past jobs to compare with what was quoted.
- 4Add actual-use captureWe set up the machine report or the operator tablet step, and test it on live jobs.
- 5Quote side by sideFor a while, the estimator sees both the old and new price and approves the new one before it replaces the old method.
What to measure
How to know it's working
Weekly report · material optimization & job costing
IllustrationPlanned vs actual material per job
The core check. Large gaps mean the plan, the rates or floor practice needs a look.
Margin by job type and customer
Shows which work earns its price and which needs requoting.
Offcut use
How often plans use logged remnants shows whether the offcut register is worth keeping.
Quotes changed by the estimator
Frequent edits point to a rate or rule that doesn't match how the shop really prices.
Jobs with missing actuals
Jobs without recorded use leave gaps in the comparison and show where capture breaks down.
We measure the baseline before building, so the change can be compared afterwards.
When it’s not a fit
- It needs accurate rates. If material prices or machine rates are out of date, every quote will be wrong in the same way.
- If most work is one-off pieces cut by hand, a plan may not match what the floor does. Check how closely operators follow nests today.
- Actual-use data takes discipline. If operators skip the confirmation step, the comparison has holes.
- It calculates material and time, not what the market will pay. The owner still decides when to price above or below that figure.
Tool or custom build
Do you need a custom build?
Option A · a ready-made tool
An off-the-shelf tool may be enough
Nesting and cut-list tools such as SigmaNEST, CutList Optimizer or the software that comes with your cutting table handle the optimization well. They fit when you only need the cutting plan.
Option B · built around your systems
When a custom build is worth it
A custom build makes sense when the plan should feed the quote and invoice directly, or offcuts need tracking across jobs. It also fits when planned and actual use are compared per customer.
Not sure which fits?
What it typically costs
Typical ranges as of October 2026. Not a quote.
Ready-made tool, set up by us
An existing platform on your own account, configured for your business.
- Setup, one timepaid to Lorryn
- $1,500–$3,000
- Tool subscriptionpaid to the provider
- $50–$150 / month
Fits when your process matches what the platform already does.
Custom build
Built around how you work, with no platform subscription. You own it.
- Build, one timebasic version to full version
- $2,250–$10,000
- Running costshosting and usage, on your accounts
- ~$5–$25 / month
Fits when your systems, rules or exceptions don't match a ready tool.
Optional Automation Care: $125 · $250 · $375 / month
1, 2 or 3 hours of support a month, with monitoring and alerts included. Without it, you run it yourself after handover.
Typically works with QuickBooks Online, Xero, NetSuite, Google Drive.
Booking into or writing to your field-service, practice or shop software adds up to $500 to the ready-made tool (often a built-in feature) and $500–$1,500 to a custom build.
Your price depends on volume, the systems involved and how many exceptions need a person. Our team confirms a fixed price before any work starts.
Proof and who stays in charge
From our results · Glass processing plantLiveAt a glass processing plant, glass cost comes from the least-waste cutting plan instead of a fixed 10–15% waste guess.Read the case studyWho does what
The automation does the routine steps. A person makes the call.
- 1Collect the piecesAutomated
- 2Build the cutting planAutomated
- 3Price the jobAutomated
- 4Approve the quoteA person
- 5Compare actual useAutomated
FAQ
Questions about material optimization & job costing
Usually not. We connect to the optimization or nesting software you already use, or add one where there is none.
Many cutting machines or their software report the result. Where they don't, operators confirm the sheets used on a tablet.
Yes. Usable offcuts can be logged with size and material, and the plan tries them before opening a new sheet.
The estimator sees the plan and the price before the quote goes out and can change either one.
It depends on the systems involved; we give a fixed quote after a free call.
You do. They live in a table you can edit, and changes to pricing rules can require an approval.
Yes. Each material is planned on its own stock sizes, and the job price adds them together.
Prices can be updated by hand or from a supplier price file. Quotes already sent keep the price they went out with.
Related use cases
Often built together
- Calls & leadsQuote & proposal builderBuilds a draft quote from the request, your price list and your rules, for a person to review and send.
- Inventory & operationsProduction tracking boardA live board of every order's stage, with a view for each role and updates from the floor.
- Data & reportingAutomated reportingPulls numbers from your systems into a scheduled report with a short plain-English summary.
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