Business Challenge
Management faced limited visibility over materials lying with multiple job workers, delays in reconciliation, inconsistent yields, excess wastage claims, and risk of inventory losses.
Our Approach
Understand
Reviewed the end-to-end job work lifecycle including material issuance, challan management, processing, returns, scrap handling, invoicing, and GST compliance. Conducted walkthroughs with Procurement, Stores, Production, Finance, and key job workers.
Assess
Assessed controls over material movement, job work accounting, stock records, consumption reporting, yield monitoring, job worker agreements, and statutory compliance. Evaluated ERP integration and reconciliation processes.
Identify
delayed reconciliations, excess material lying with job workers, inconsistent yield reporting, unapproved wastage claims, non-standard reporting formats, inadequate physical verification, and weak monitoring of ageing stock at job worker locations.
Analyze
Performed material traceability analysis, ageing analysis of material lying with job workers, input-output ratio review, yield variance analysis, scrap generation analysis, and job worker-wise performance benchmarking. Reconciled materials issued, consumed, returned, and pending across all job worker locations.
Recommend
Developed a centralized Job Work Governance Framework covering standardized reporting, periodic reconciliation, yield norms, wastage benchmarks, ageing controls, physical verification protocols, maker-checker approvals, and job worker performance scorecards. Recommended ERP-based material tracking and automated exception reporting.
Implement
Assisted management in designing reconciliation formats, ageing dashboards, job worker MIS reports, material tracking registers, SOPs, and escalation matrices. Supported implementation of job worker-wise KPI monitoring and ERP control enhancements.
Monitor
Established monthly reconciliation reviews, ageing analysis of material at job worker locations, yield variance monitoring, physical verification plans, and quarterly vendor performance reviews through management dashboards.
Outcome
• Improved visibility of materials across multiple job worker locations. • Reduction in unreconciled inventory and material losses. • Better control over wastage and yield variances. • Strengthened compliance with GST job work provisions. • Enhanced accountability through job worker performance monitoring. • Improved working capital management through timely recovery of excess inventory lying with job workers.
