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Manufacturing · India

Manufacturing ERP that costs every job

Built for Indian plants. Production planning and MRP turn demand into a plan. The plan becomes work orders and purchase orders. And every job carries what it really cost — material, labour, machine time, job work and scrap.

Book a demo What the job cost

How the work moves

Production planning: from the bill of materials to the machine

Three screens, one plan. The bill of materials names every part. MRP turns the demand into make and buy orders. The schedule gives each operation a machine and a date.

Where the plan comes from

Production planning and MRP: what to make, what to buy

A production planning run reads three things: the forecast, the master demand, and the orders customers have actually placed. It gives back a list of what to make and what to buy, each one dated.

MRP · planning run
Reads
  • Forecast, by period
  • The master demand
  • Sales orders on the book
  • Stock on hand and already committed
→
Gives back
  • Planned orders, make or buy
  • Exploded level by level
  • Each one dated
  • Converted to a work order or a purchase order

MRP works down the levels. A planned order for a finished item raises planned orders for its sub-assemblies. Those raise planned orders for their components. Each one records its level and the order above it. So when you ask why the plant is buying a bearing in March, the answer traces back to the order that needs it.

What a product is, and how it gets made

Multi-level bills of material and production routing

Several levels deep
Assemblies inside assemblies, planned and exploded together rather than flattened into one long list.
Alternatives, when there are any
A master bill with alternatives beside it, so a substitute component is a setting rather than a new product.
Operations in sequence
Each step in its order, on a named work centre, with the resources it needs and who supervises it.
Setup time and run time, separately
Held per operation, which is what makes a schedule and a capacity answer possible instead of a guess.

Make to order

Make to order, joined to the customer order

In make to order, a work order raised from a sales order carries that order and that line the whole way through the shop. Ask what a customer is waiting for and the answer is on screen. Not a walk to the floor.

Source is recorded

The work order says where it came from — a sales order, a service order, the plan — so make to order and make to stock are not the same pile.

Scheduled against actual

Planned start and finish sit next to what really happened, on the order and on each operation. Slippage is visible while it is still slippage.

Quantity, at each stage

Queued, running, assembled, scrapped — per operation. Work in progress is a number, not an estimate.

How the order gets there ›

The Indian part

Job work, costed back into the job

Sending material out for plating, machining or heat treatment is normal in India. It is also where most systems lose track. The material leaves, the charge arrives weeks later, and the cost of the part stays wrong until somebody works it out by hand.

The material is still yours

What goes out stays on the books as stock you own, held at the job worker. It does not vanish from the system the moment it is despatched.

The charge lands on the job

The job worker's bill goes against the work order it belongs to. Not into a general overhead account that nobody can separate out later.

It shows as its own cost

Job work sits beside material, labour and machine time on the cost sheet, so you can see what you are paying to send work out.

Job work costing in detail ›

The number that matters

Job costing: plan against actual

Month-end tells you the factory made money. It does not tell you which jobs made it and which jobs lost it. In job costing, the cost sits on the work order itself.

Work order · cost sheet
Materialplan vs actual
Labourplan vs actual
Machine and overheadplan vs actual
Job workplan vs actual
Scrap and reworkquantity and value
Total production costvariance

Per order, not per month

Each work order carries its own cost sheet, so a job that ran over is a job you can name.

Scrap counted, not absorbed

Scrapped and reworked quantities are recorded on the operation that produced them, which is how you find out where yield goes.

It reaches the ledger

Production cost posts through to accounts, so the shop floor and the books are describing the same month.

Quality

Quality checks with a real tolerance

A quality check here is not a tick box. It carries a minimum, a maximum, and the value someone actually measured. A batch was either inside the band or it was not.

Held against the product
The plan belongs to the item, not to whoever is on duty, so the same checks happen every time.
Checked in process, not only at the end
Parameters can be checked as material moves between operations, so a problem is caught before more value goes into it.
Lab results where they apply
Test results recorded against the batch, with observations and remarks kept alongside the numbers.
Scored, so it can be compared
Results roll into a composite score, which is what makes one batch or one supplier comparable with another.

Bring one job that went over.

A production order you know lost money, and the paperwork behind it. That is the one worth walking through, because it is where the difference between a costing system and a spreadsheet shows up.

Book a demo See the other modules

Useful to have ready

  1. One production order, with its bill of materials
  2. What you send out for job work, and to whom
  3. How you cost a job today, and who does it
  4. Whether you make to stock, to order, or both