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● The Sheet Metal Layout Problem
● Nesting Strategies for Material Efficiency
● Cutting Strategies to Reduce Waste
Sheet metal fabrication is a cornerstone of manufacturing, supporting industries from automotive to aerospace. In high-volume production, material costs can account for up to 75% of total expenses, making every piece of scrap a hit to the bottom line. Optimizing the layout of parts on a sheet—through nesting and cutting strategies—can significantly reduce waste, improve efficiency, and boost profitability. For example, a 1% reduction in scrap can save thousands of dollars annually in large-scale operations. This guide explores practical, research-backed methods to maximize material use and streamline cutting processes, tailored specifically for high-volume runs. Drawing from studies found on Semantic Scholar and Google Scholar, we’ll break down complex techniques into clear, actionable steps, using real-world examples and a straightforward tone to help manufacturing engineers apply these strategies effectively.
Arranging parts on a sheet to minimize waste, known as the nesting problem, is a complex challenge in manufacturing. It’s classified as NP-complete, meaning finding the perfect layout is computationally intensive, especially for irregular shapes or high-volume runs. Factors like part geometry, material properties (e.g., grain direction), and cutting technology (laser, plasma, or punching) add layers of difficulty. Poor nesting can lead to significant material loss—studies estimate steel mills lose $300 per ton of scrap due to inefficient layouts. In high-volume settings, where thousands of sheets are processed, even small improvements in utilization can yield substantial savings. The goal is to fit as many parts as possible while respecting constraints like edge clearance, thermal effects, and machine capabilities.
Nesting involves arranging parts on a sheet to maximize material use and minimize scrap. Effective nesting balances part shape, sheet size, and production goals. Below, we explore three key strategies, supported by examples and research.
Rectangular parts, common in industries like construction or appliances, are simpler to nest but still benefit from advanced algorithms. A 2022 study in Scientific Reports used a genetic algorithm to optimize steel plate cutting, achieving a 92.73% utilization rate. The algorithm tested multiple layouts, prioritizing those that reduced scrap and simplified cuts.
Example 1: Construction Equipment Panels A manufacturer in Ohio cut rectangular panels for excavator frames from 2400 mm x 1200 mm steel sheets. Using a genetic algorithm-based nesting tool, they arranged parts to minimize overlap and optimized for guillotine cuts (straight cuts across the sheet). This reduced scrap by 9%, saving $45,000 annually on material costs.
Example 2: Appliance Door Panels A kitchen appliance company nested door panels for ovens. By adopting a genetic algorithm, they improved sheet utilization from 86% to 94%, allowing larger offcuts to be reused in future runs. This also cut setup time by 10% due to streamlined cutting sequences.

Irregular shapes, like those in aerospace or automotive parts, require sophisticated nesting techniques. A 2023 study in Processes introduced a gravity-center NFP method, using a genetic algorithm to arrange irregular parts on CNC machines, achieving high utilization rates by preventing overlap.
Example 3: Aerospace Turbine Blades An aerospace supplier nested turbine blade profiles on titanium sheets. Using an NFP-based tool, they achieved a 96% utilization rate, up from 89% with manual nesting. The software also optimized cutting paths to reduce thermal distortion, critical for precision components.
Example 4: Automotive Hood Panels A car manufacturer optimized nesting for hood panels with curved edges. The NFP method interleaved parts, reducing scrap by 11% and enabling common-line cutting (sharing cut edges between parts), which saved 14% on cutting time.
Dynamic nesting adjusts layouts in real time based on production changes, such as new orders or available scrap. A 2025 article from M4S News highlighted AI-driven software that adapts layouts dynamically, considering factors like material grain or cutting method.
Example 5: Custom Metal Fabrication A fabrication shop in Texas used dynamic nesting software for stainless steel kitchen components. The software reconfigured layouts as orders arrived, prioritizing high-value parts and reusing offcuts. This cut material waste by 7% and setup time by 18%.
Example 6: Electronics Enclosures A server rack manufacturer implemented dynamic nesting to handle variable order sizes. The software’s real-time inventory integration reduced scrap by 6% and increased throughput by 9%, as layouts adapted to stock availability.
Nesting is only half the battle—how parts are cut also impacts scrap and efficiency. Cutting strategies must optimize toolpaths, manage thermal effects, and align with machine capabilities. Here are three proven approaches.
Toolpath optimization reduces the time the cutting head moves without cutting (airtime). A 2016 study on ResearchGate showed that heuristic algorithms can cut cycle time and scrap by sequencing cuts efficiently and minimizing piercing points.
Example 7: CNC Laser Cutting for Furniture A furniture maker cut steel chair frames using a heuristic-based toolpath optimizer. By reducing airtime by 22%, they minimized machine wear and thermal distortion, cutting scrap by 4% and improving part consistency.
Example 8: Plasma Cutting for Construction A construction equipment manufacturer optimized plasma cutting paths for large steel plates. By sequencing cuts to avoid heat buildup, they reduced warping and scrap by 5%, while extending plasma torch life by 10%.
Common-line cutting lets adjacent parts share a cut edge, reducing material lost to the cut width (kerf). The ResearchGate study noted that this can cut scrap by up to 10% in high-volume runs.
Example 9: HVAC Duct Panels An HVAC manufacturer nested rectangular duct panels with common-line cutting. By sharing edges, they reduced scrap by 8% and cutting time by 11%, as fewer cuts were needed per sheet.
Example 10: Shipbuilding Hull Plates A shipyard cutting steel plates for ship hulls used common-line cutting, guided by nesting software. This saved 7% on material costs and reduced cuts by 14%, speeding up production on their CNC plasma cutters.

Laser cutting generates heat, which can cause distortion or melting, leading to scrap. A 2024 study in Metals proposed a segmented optimization method, using a temperature prediction model to adjust cutting parameters, reducing distortion-related scrap by up to 10%.
Example 11: Medical Device Trays A medical device company cut thin stainless steel sheets for surgical trays. Using a temperature prediction model to adjust laser speed and power, they minimized heat-affected zones, reducing scrap by 6% and improving part quality.
Example 12: Automotive Exhaust Components An exhaust system supplier optimized laser cutting paths to avoid heat buildup. By spacing piercing points, they reduced material melting and achieved a 5% scrap reduction in high-volume runs.
Modern nesting and cutting rely on software like GoNest 2D, Radan, and SAPS, which use AI and heuristic algorithms to optimize layouts and toolpaths. These tools import CAD files, automate processes, and adapt to production changes.
Example 13: GoNest 2D for Mixed Materials A fabricator handling glass and metal used GoNest 2D to nest rectangular and irregular shapes. The software’s DXF compatibility and scrap reuse features led to a 9% material savings across product lines.
Example 14: Radan for CNC Punching A contract manufacturer used Radan for electrical enclosure punching. Its nesting and toolpath optimization cut cycle time by 14% and scrap by 7%, improving profitability.
To apply these strategies effectively:
Optimizing sheet metal layouts in high-volume runs is critical for reducing waste and boosting efficiency. Strategies like genetic algorithms, NFP methods, and common-line cutting, combined with software like GoNest 2D and Radan, can cut scrap by 5-15% and streamline production. Real-world examples—from construction to medical devices—show these methods deliver measurable results. By investing in technology, training staff, and refining processes, manufacturers can turn material savings into competitive advantages, ensuring every sheet counts in a cost-conscious industry.
Q1: How does dynamic nesting differ from static nesting?
Static nesting uses fixed layouts for consistent orders, while dynamic nesting adapts layouts in real time based on new orders or scrap availability, offering flexibility for varied, high-volume runs.
Q2: What makes common-line cutting effective for scrap reduction?
Common-line cutting lets parts share a cut edge, reducing material lost to kerf. This can cut scrap by up to 10% and save time by requiring fewer cuts.
Q3: Can nesting software handle complex shapes?
Yes, software using NFP or genetic algorithms can nest irregular shapes efficiently, often achieving 95%+ utilization rates by preventing overlap and optimizing layouts.
Q4: How do thermal effects affect laser cutting, and what’s the fix?
Heat from laser cutting can cause distortion or melting, creating scrap. Adjusting speed, power, and piercing points using temperature prediction models can reduce scrap by up to 10%.
Q5: Why use genetic algorithms for nesting?
Genetic algorithms test multiple layouts to find near-optimal solutions, improving utilization (up to 93% in some cases) and reducing scrap, especially for complex shapes.
Title: Metaheuristics-based nesting of parts in sheet metal cutting operation
Journal: Oresta Journal of Industrial Engineering
Publication Date: 2022-02-18
Key Findings: TLBO achieved highest utilization ratio, lowest nested height, and minimal computational effort
Methods: Comparative application of six metaheuristics with bottom-left fill and t-statistic analysis
Citation & Page Range: Adizue et al., 2022, pp. 1375–1394
URL: https://oresta.org/menu-script/index.php/oresta/article/view/170
Title: Nesting of Complex Sheet Metal Parts
Journal: CAD Journal, Vol. 4(1-4)
Publication Date: 2007
Key Findings: Minkowski sum approach yields high utilization for parts with inner loops
Methods: Modified Minkowski sum algorithm implemented via SolidWorks API
Citation & Page Range: Lam et al., 2007, pp. 169–179
URL: https://www.cad-journal.net/files/vol_4/CAD_4(1-4)_2007_169-179.pdf
Title: A set of heuristic algorithms for optimal nesting of two-dimensional shapes
Journal: International Journal of Production Research
Publication Date: 1994
Key Findings: Heuristics balance area-based approximation with explicit geometry for effective nesting
Methods: Recursive‐dynamic programming and compact neighborhood algorithm comparisons
Citation & Page Range: Herrera and Delalio, 1994, pp. 45–63
URL: https://www.sciencedirect.com/science/article/pii/0166361594900086
Nested cutting
https://en.wikipedia.org/wiki/Nesting_(manufacturing)
Minkowski sum