Plugging the Leaks: Managing Theoretical vs. Actual Material Consumption

In high-precision manufacturing like Plastic Injection Moulding and Rubber Moulding, material cost often accounts for over 60-70% of the total product cost. However, many plants struggle with a constant mismatch between what “should” have been used (BOM) and what was “actually” consumed on the shop floor.

Finsys ERP provides a robust framework to bridge this gap using advanced Backflush and Actual Consumption tracking.

The Problem: The “Material Variance” Headache – Theoretical vs Actual Consumption ERP

Most ERPs simply “backflush” material based on the Bill of Materials (BOM). For example, if you produce 100 units, the system assumes you used exactly 10kg of granules. But in reality:

• Purging: Extra material is wasted during machine startup.

• Rejections: Not all material becomes a finished good; some goes to scrap.

• Flash & Runners: In moulding, the runners and flash often vary in weight.

If you only track theoretical data, your Physical Stock will never match your System Stock.

The Finsys Solution: Real-Time Variance Analysis

The video demonstrates how Finsys ERP handles the duality of production accounting: Theoretical vs Actual Consumption ERP

1. Theoretical Backflush (BOM Based)

The system automatically calculates the expected consumption as per the standard BOM. This serves as the “Benchmark” for every production batch.

2. Actual Material Issuance (Barcode Based)

Using scanners, the actual quantity of raw material issued to the machine is recorded. Whether it’s 25kg bags of Polymer or Compound batches in Rubber, every gram is tracked.

3. Variance Reporting (The “Truth” Report)

Finsys provides a live comparison. If the BOM says 10kg but the operator used 11kg, the system highlights a 10% negative variance. This allows the plant head to immediately investigate machine settings, mold issues, or operator inefficiency. [04:30]

Strategic Benefits for Moulding Plants

Watch the Demonstration: Material Accounting Mastery

Learn how to gain total control over your raw material consumption and improve your bottom line.

https://www.youtube.com/watch?v=LuWobmH4RTE

Official Website: www.finsys.co.in

Youtube: https://www.youtube.com/@SangeetGuptaFinsysERPSoftware/videos

The Hidden Leakage: How to Track Bins and Trolleys Using Finsys ERP

In high-volume manufacturing sectoars—like Auto Components, Rubber Molding, and Food Processing—Bins, Trolleys, and Crates are the unsung heroes of the shop floor. However, because they are “reusable,” they are often the most poorly tracked assets. Thousands of rupees are lost every year when these bins go missing at vendor sites or during customer dispatches.

Finsys ERP provides a dedicated module for Bins and Trolleys Accounting, ensuring that every reusable asset is tracked with the same precision as your raw materials.

The Challenge: Why Manual Tracking Fails

Most factories treat bins as “consumables” rather than assets. This leads to:

• Unaccounted Losses: Bins sent to vendors for sub-contracting work never return.

• Production Delays: Searching for available trolleys on a disorganized shop floor.

• Customer Disputes: Conflicting counts of crates sent versus crates returned.

The Finsys Solution: Real-Time Asset Monitoring

The video demonstrates how Finsys treats each bin as a unique inventory item:

1. Unique Identification & Barcoding

Every trolley or bin can be assigned a unique ID or Barcode. This allows the system to know exactly where “Trolley #405” is located—whether it’s in the Washing department, the Press Shop, or at a Vendor’s plant.

2. Inter-Unit & Vendor Transfers

When bins are sent out of the gate (e.g., for Job Work), the system records an automated “In-Out” transaction. The vendor’s ledger shows not just the material quantity, but also the number of bins they are currently holding.

3. Return Tracking & Reconciliation

As soon as the empty bins return, a simple scan or entry reconciles the stock. Finsys provides an “Outstanding Bins Report,” allowing managers to follow up with vendors or customers who haven’t returned the assets.

Strategic Benefits for Manufacturers

Watch the Demonstration: Bins & Trolleys Accounting

Stop the leakage and start tracking your reusable assets today. Watch the full technical manual below:

 https://www.youtube.com/watch?v=185iI-l3UfQ

Official Website: www.finsys.co.in

Youtube channel:- https://www.youtube.com/@SangeetGuptaFinsysERPSoftware/videos

Verify physical presence of your machines, your equipment and all your assets.

Using QR barcodes & a new Android App made by Finsys ERP.

Very Simple.

Standalone.

Can start working in just 1 day.

For Details & photos :

http://finsys.co.in/fixed-asset-verification-software-physical-verification

Finsys coverage in FMT Food Marketing and Technology magazine

It gives us immense pleasure to share with you that FINSYS has been featured in one of the renowned International Magazine of the Food Industry FOOD MARKETING AND TECHNOLOGY.

This is a dedicated  magazine about the Technology and Marketing in the FOOD INDUSTRY.

The article “Software Solutions in the modern Packaging Era for Food and Beverages” specifically talks about the Role and Importance of ERP in the Food Packaging Industry.

It is contributed by Mr Sangeet Kr Gupta  &  Mr Puneet Gupta.

The edition has hit the stands, do grab a copy.

The complete 2 page  article can be seen here..

http://fmtmagazine.in/software-solutions-modern-packaging-era-food-beverages/ 

🙏 Blessings 🙏

Mr M L Gupta sir was awarded a Special Honour .. Lifetime Achievement Award.

By Institute of Chartered Accountants of India, body

MLGupta ji honoured with Life Time Achievement Award on CA Day