Meaning
The mandatory subtraction accounts for polymer material that is permanently lost during extrusion, molding, or compounding. This process loss deduction reduces the total volume of certified material credits to reflect the physical scrap and purging losses that occur on the shop floor. Moulders must apply this calculation to prevent the over-allocation of certified recycled attributes to finished parts.
It ensures that the digital credit balance remains tied to the actual yield of the manufacturing process.
Material Efficiency
Extrusion and compounding lines inevitably generate waste through startup purging and melt filtration. Applying the process loss deduction ensures that these lost polymers do not generate certified product credits. If a processor ignores these losses, the mass balance ledger will carry inflated credits that do not correspond to physical resin.
Accurately deducting these losses ensures that the physical density and polymer quality of the final product are correctly represented. This accounting correction must be performed at every transition point in the manufacturing process to maintain mass balance accuracy.
Production Limit
The molding process imposes constraints based on the tool design and runner systems. High process loss deduction values can restrict the volume of certified parts that can be sold, as a significant portion of the input resin ends up as unrecoverable waste. If the runner system is inefficient, more certified material must be purchased to achieve the desired output of certified parts.
This dynamic encourages molders to optimize tooling and reduce scrap generation.
Financial Consequence
High deduction rates directly increase the cost of producing certified parts. Because the process loss deduction reduces the amount of saleable certified product, it raises the raw material cost per unit. Moulders must pass these costs on to customers or improve their process efficiency to maintain profitability.