This page works through a scenario. It describes no client and reports no client results. It shows how MatruOS runs quality and production records for a business of this type and size. The figures are arithmetic you can check, with the assumptions stated.
01The business
A plant in Pune machines and assembles brackets, shafts and housings for vehicle makers and their tier-one suppliers. It buys castings, forgings and bar stock from a dozen suppliers, runs CNC turning centres and VMCs across two shifts, and ships against customer schedules. Customers expect inspection records for every lot and debit the plant for parts rejected at their line.
02What rejections cost
Assume the plant makes 40,000 parts a month and rejects 1.5 percent internally, at machining or final inspection. Each part carries ₹180 of material and 6 minutes of machine time at ₹900 an hour, which is ₹90.
- Rejected parts a month
- 40,000 × 1.5% = 600.
- Cost of each
- ₹180 + ₹90 = ₹270.
- Cost a month
- 600 × ₹270 = ₹1,62,000, before scrap value and supplier debits.
Rejections caused by casting or forging defects found at machining are usually debited back to the supplier, often including the machining cost, under the supply agreement. If 400 of the 600 were casting defects recovered in full, the plant's own cost would be 200 × ₹270 = ₹54,000 a month, less what the rejected parts fetch as scrap. That is why the plant needs to know, lot by lot, which rejections are the supplier's and which are its own.
The output, rejection rate, costs and split are assumptions chosen to show the arithmetic. They are not industry averages.
03How it usually runs
- Inspection on paper
- Incoming readings go into a register. Stores issue material before the register is updated.
- Bills posted on arrival
- Accounts posts the supplier's bill when it arrives, whatever the result of inspection, and recovering money for rejected castings depends on the supplier's goodwill.
- Production in a separate sheet
- Work orders, material issued and output are tracked in a sheet that does not feed the books.
- Variance at month end
- Finance works out the production difference from the stock count and has to guess where it came from.
04How MatruOS runs it
Quality plans for goods received and goods made
The quality head sets up plans: which items are checked when they arrive or when they are made, whether every lot or one in a set number is checked, what is measured, and whether the lot is held until checked. Each check can be pass or fail, a measurement with lower and upper limits, or a note.
Lots held until checked
A lot under a hold plan goes to a quality hold place and cannot be used until it is checked. The inspector records the readings, and a reading outside its limits fails. The lot is then accepted, or rejected in full or in part, with rejected goods held for return to the supplier or written off.
Supplier bills matched and held
When the supplier's bill is entered against its goods receipt, MatruOS matches it to the purchase order and the receipt within the price and quantity tolerance the business sets. It holds the bill while the lot is in inspection or has rejections, and a held bill cannot be paid until someone approves it. Accounts raises a debit note against the bill for the rejected quantity. The Payables clerk on the AI team warns the team before supplier bills fall due.
Work orders with material, time and output
Each work order follows the bill of materials, which can carry a planned loss percentage per material. Material is issued from stock, or used up automatically when output is recorded. Job cards record the actual minutes each operation took. Output records good and rejected quantities and the batch. A work order closed short sends unused material back to stock and books the remainder as a production difference.
Production variance found as it happens
Each work order shows planned and actual material and time, and output cost against standard. The production summary shows open and late work orders, what was made this month and its value, and the production difference booked this month.
Customer debits by credit note
When a customer rejects parts at its line, a credit note against the invoice reduces what the customer owes, and returned parts come back into stock, where the inspector reworks them or writes them off.
05Who does what each day
| Who | What they do |
|---|---|
| Stores | Receive lots against the purchase order; held lots go to the quality hold place |
| Inspector | Records readings and accepts or rejects each lot |
| Payables clerk, AI team | Warns before supplier bills fall due |
| Production | Records material, job card times and output on each work order |
| Accounts | Enters supplier bills against receipts, approves or keeps held bills, raises debit notes |
| Plant head | Reviews the production difference and late work orders each week |
06One casting lot, start to finish (sample data)
- 2,000 aluminium housings arrive from a foundry against a purchase order at ₹410 each. Stores records the receipt, and the lot goes to the quality hold place.
- The inspector measures wall thickness and machining allowance on a sample and checks for surface porosity. 60 housings show porosity. The inspector accepts 1,940 and rejects 60.
- The foundry's bill arrives. Accounts enters it against the receipt. It matches the order and receipt, and is held because of the rejection until accounts approves it.
- Stores moves the 60 rejected housings from the quality hold place to the main store, and accounts raises a debit note against the bill for them: 60 × ₹410 = ₹24,600, plus 18 percent GST, ₹29,028.
- The accepted housings are issued to a work order. Final inspection checks the machined bore against 52.000 to 52.030 mm. Output records 1,925 good and 15 rejected at machining. The record holds the quantity only, so whether each is a casting defect or the plant's own is noted by hand until reason codes are built.
The supplier, amounts and readings are sample data.
07Set up in 7 days
- Items, suppliers and customers
- loaded from a Tally or Busy export, or from spreadsheets.
- Bills of materials and routings
- entered for the main part numbers, with planned loss where known.
- Quality plans
- set for incoming castings and forgings and for final inspection, with measured limits from the drawings.
- Opening stock
- loaded by item and place, with batches where tracked.
08What to measure
| Measure | How | How often |
|---|---|---|
| Incoming rejection rate | Lots rejected ÷ lots checked, from the quality checks list | Monthly |
| Internal rejection rate by item | Rejected quantity ÷ total output on work orders | Weekly |
| Production difference | Booked on work orders closed this month | Monthly |
| Share of lots passed | Quality summary, last 30 days | Weekly |
09Not covered yet
- A printed inspection report for the customer.
- Defect reason codes on rejections, and analysis by reason.
- Statistical process control, PPAP documents and gauge calibration records.
- A report of incoming rejections grouped by supplier.
- Returning rejected goods from the quality hold place on the debit note. Today the debit note takes the quantity out of the main store, so stores first moves the rejected goods from the hold place into the main store.
- Reading a photographed bill straight into a bill against its goods receipt. Bill reading suits bills without a goods receipt, such as freight and services.
- AI analysis of failed quality checks. The Quality inspector role is being connected to quality checks.
We build what your business needs, free, on every plan. Tell us which of these matters to you.
AI can make mistakes. The Payables clerk's due-date warnings come from the bills recorded; inspection readings and every release, rework or scrap decision are recorded by people.