Manufacturing leaks margin in three quiet places: BOMs that drift, scrap that doesn’t flow back to job cost, and job-work invoices that confuse the GST officer. We instrument all three.
Process from RM to FG, with operations. Perfection at BOM, QC and job-work entry. Productivity: scrap visible, on-time delivery rises, ITC stops leaking.
BOM was right at design. Then engineering changed three components, the storeman started substituting the unavailable bracket with another, and nobody updated the master. Costing is now wrong by 3–6%.
Rejected lots get adjusted into stock as “process loss”. Real scrap cost never reaches the job card. Margin per item is decorative.
Material out on Challan ITC-04, returned partially, billed as job work or sent back — the chain breaks somewhere. ITC sits at risk every quarter.
QC says hold. Dispatch ships anyway because customer is screaming. Two weeks later, return and credit-note. Hold needs to be a system rule, not a sticker.
Sales commits delivery. Production discovers next week the line is double-booked. Customer-facing ETA is theatre.
Job worker raises bill in Excel. Material accounting and labour rate reconcile on a different spreadsheet. Settlement runs 30–60 days behind.
Frappe ERPNext — BOM with versioning, work-order with operations, QC at receipt and FG, job-work challan ITC-04, capacity planning at machine and shift level.
Quote-to-order pipeline, sample dispatch tracking, dealer / distributor scheme management, secondary-sales capture, lead nurture by industry segment.
Warranty claim with batch lookup, RMA workflow with replace / repair / refund, defect routing to QC and engineering, root-cause register.
A 45-minute discovery call. We come prepared with the questions a manufacturing operator actually faces — BOM versioning, scrap accounting, job-work GST, capacity bottlenecks. ERPNext or Zoho before you sign anything.