TIP (Trim in Process) Unit of Measure

A TIP (Trim In Process) is equivalent to a 1″ x 12″ piece of metal. In order to find TIP, the width unit and unit of measure quantity per linear foot values need to be found. After that, TIP can be calculated using the steps below, and there’s the option follow along with the training video. In this example the coil will be 42″ wide, 2.1lbs per linear foot, and the percentage of waste will be 5%.

Calculating TIP

• First to get the width unit, divide one by the width of the coil.
  • In this case it would be: 1/42 = 0.0238095238095238
• Next, find the unit of measure quantity per linear foot. This is measured by lbs. per linear foot or just linear feet.
  • In this example it’ll be lbs. per linear foot, which is 2.1 lbs.
• To then find the TIP factor, multiply the width unit x unit of measure quantity per linear foot.
  • In this example it would be: 0.0238095238095238 x 2.1 = 0.05
• Then in order to account for the wasted material, multiply by the percentage of waste (Typically 4-6%). Percentage of waste should be adjusted occasionally based off of the actual coil usage, in this case it’ll be 5%.
• Add the TIP and the waste factor together.
  • In this case the equation would be: 0.05 x 1.05 = 0.0525
• The final TIP factor would be 0.0525.

Adding The TIP To the Coil

• Go to Inventory > Inventory List and open the coil that needs the new tip factor. Then select the gear beside “Sales Unit Measure:”.

• Type the TIP into the “Unit Quantity” column and enter the TIP before the percentage of waste was added (0.02381) in the in the “Weight” column. TIP must be set up as a linear unit of measure. Also be sure to have the base unit of measure set, in this case it’s lbs.

• Multiple TIP unit of measures can be set up on each coil with different scrap rates if need be. Below the 3%, 5%, and 7% waste factors are set up.
• If the unit of measure quantity per LF was one (coil inventoried by LF) instead of LB as in the example above, the TIP calculation is simply (1/[Coil Width]) with the waste added on top, for example (1/42)*1.05 = 0.025.