Some ideas:
.Make little yarn dolls & dress them in scraps. Lapel pin!
.Appliques...
.In school, I collect gatorade bottles, cover with scraps. Add twig arms, styofoam ball head or mini pumpkin. Embellish with all those cute things they sell in crafts stores!
.Stuff a 6" circle for a head, secure with rubber band.
Scrappy hair. Glue to empty toilet paper roll, also covered with scraps, add buttons, etc. Place card decorations or just to keep-the-kids-busy.