The Shakers and Amish have several techniques for making rugs by sewing scraps, folds, strips to a background fabric--a great use for small pieces. I think some are called shubutzers, some petal rugs.
http://www.facebook.com/pages/Angies...wall&filter=12 Has pictures of these half-way down.
I have seen pictures of the technique in
Handworks and some other rug books which I don't recall. Google "mud rugs"