Clear definitions for 80+ manufacturing and ERP terms used in Indian factories every day. From ABC Analysis to Work-in-Progress, find the meaning of every term you need.
ABC Analysis is an inventory categorization method that divides items into three classes based on their annual consumption value. A-class items are high-value (typically 20% of items accounting for 80% of total value), B-class are moderate, and C-class are low-value but high-quantity. Manufacturers use ABC analysis to focus inventory control efforts and purchasing priorities on the items that matter most.
Learn about Inventory ManagementAccounts Payable refers to the money a manufacturer owes to its suppliers and vendors for raw materials, components, and services received but not yet paid for. AP is a current liability on the balance sheet. ERP systems automate AP by linking supplier invoices to purchase orders and GRNs, enabling three-way matching and timely payment tracking.
Learn about Finance & AccountingAccounts Receivable refers to the money owed to a manufacturer by its customers for goods delivered or services rendered. AR is a current asset on the balance sheet. Manufacturing ERP systems track outstanding invoices, payment due dates, aging reports, and send automated payment reminders to improve cash flow collection.
Learn about Finance & AccountingAn assembly line is a manufacturing process where a product moves through a series of workstations, with each station performing a specific operation until the product is complete. Assembly lines improve production speed and consistency. In Indian auto parts manufacturing, assembly lines are used for components like alternators, starters, and brake assemblies.
Learn about Production PlanningAuto parts manufacturing refers to the production of components and parts used in automobiles, including engine parts, transmission components, brake systems, suspension parts, and body panels. India is a major global hub for auto parts manufacturing, with thousands of MSME and Tier-1/Tier-2 suppliers serving domestic and international OEMs.
Learn about Auto Parts ManufacturingA Bill of Materials (BOM) is a structured list of all raw materials, components, sub-assemblies, and quantities required to manufacture a finished product. Multi-level BOMs are common in Indian manufacturing, where a finished auto part may have sub-assemblies that themselves require further components. ERP systems manage BOMs with version control, alternate materials, and automatic material requirement calculations.
Learn about Bill of MaterialsBatch tracking is the practice of assigning a unique batch number to a group of products manufactured together under identical conditions. It enables forward and backward traceability, from raw material to finished product and vice versa. Batch tracking is essential for quality recalls, expiry management, and regulatory compliance in Indian manufacturing industries.
Learn about Quality ControlBarcode scanning is the use of barcode labels and scanners to quickly identify and track items in a manufacturing environment. Barcodes are applied to raw materials, WIP, finished goods, and warehouse bin locations. Scanning reduces manual data entry errors, speeds up inventory counts, and enables real-time stock updates in ERP systems.
Learn about Inventory ManagementA back order is a customer order that cannot be fulfilled immediately because the required items are out of stock. The order remains open and is fulfilled once stock becomes available. ERP systems track back orders separately, trigger procurement or production actions, and notify sales teams when back-ordered items are ready for dispatch.
Learn about Sales & CRMBuffer stock (also called safety stock) is the extra quantity of raw materials or finished goods kept on hand to protect against supply chain disruptions, unexpected demand spikes, or production delays. The optimal buffer stock level depends on lead time variability, demand variability, and the desired service level. ERP systems calculate and maintain buffer stock levels automatically.
Learn about Inventory ManagementCNC (Computer Numerical Control) machining is a manufacturing process where pre-programmed computer software controls the movement of machines and tools to shape raw materials into finished parts. Common CNC operations include turning, milling, drilling, and grinding. Indian auto parts manufacturers widely use CNC machines for precision components, with ERP systems tracking machine utilization, tool life, and production output.
Learn about Precision MachiningCycle time is the total time taken to complete one unit of a product from start to finish in a manufacturing process. It includes processing time, machine setup time, and any waiting time between operations. Reducing cycle time directly improves throughput and production efficiency. ERP systems track cycle times per operation and per machine to identify bottlenecks.
Learn about Production PlanningCapacity planning is the process of determining the production capacity needed to meet current and future customer demand. It involves analyzing machine availability, shift patterns, operator skills, and maintenance schedules. ERP-based capacity planning helps Indian manufacturers avoid overloading machines while ensuring delivery commitments are met.
Learn about Production PlanningCost of Goods Sold (COGS) is the total direct cost of manufacturing products that were sold during a period. It includes raw material costs, direct labor, and manufacturing overheads. COGS is a critical metric for calculating gross profit margins. ERP systems calculate COGS automatically by tracking material consumption, labor hours, and overhead allocations per production order.
Learn about Finance & AccountingA challan is a document used in Indian trade and manufacturing to accompany goods during transport without a formal tax invoice. Types include delivery challans (for goods sent on approval or as samples) and job work challans (for materials sent to subcontractors for processing). Under GST, challans must include specific details and are tracked in ERP systems for compliance and reconciliation.
Learn about Job Work TrackingCompliance in manufacturing refers to adherence to regulatory requirements, industry standards, and quality certifications. For Indian manufacturers, this includes GST compliance, e-invoicing mandates, environmental regulations, labor laws, and quality standards like IATF 16949 and ISO 9001. ERP systems help maintain compliance through automated documentation, audit trails, and regulatory reporting.
Learn about Quality ControlA dispatch note (also called a delivery note) is a document that accompanies goods when they are shipped from the manufacturer to the customer. It lists the items, quantities, batch numbers, and delivery details. In Indian manufacturing, dispatch notes are linked to sales orders, invoices, and e-way bills within ERP systems for complete shipment traceability.
Learn about Dispatch & LogisticsDemand forecasting is the process of predicting future customer demand for products based on historical sales data, market trends, and seasonal patterns. Accurate demand forecasting helps manufacturers plan production schedules, procure raw materials in advance, and maintain optimal inventory levels. ERP systems use historical order data to generate demand forecasts and drive MRP calculations.
Learn about Reports & AnalyticsDie management is the tracking and maintenance of dies, molds, and tooling used in manufacturing processes like stamping, forging, and injection molding. It includes tracking die life (number of shots or cycles), scheduling preventive maintenance, and managing die inventory. ERP systems with die management modules help Indian manufacturers reduce unplanned downtime and extend tool life.
Learn about Sheet Metal & StampingDelivery lead time is the total time between a customer placing an order and receiving the finished goods. It includes order processing time, production time, quality inspection time, and shipping time. Reducing delivery lead time is a key competitive advantage for Indian manufacturers. ERP systems calculate expected delivery dates based on current production load, material availability, and historical lead times.
Learn about Sales & CRMAn e-Invoice is an electronically authenticated invoice generated through the Indian Government's Invoice Registration Portal (IRP). Businesses above the prescribed GST turnover threshold must generate e-invoices for all B2B transactions. The IRP assigns a unique Invoice Reference Number (IRN) and QR code to each invoice. Manufacturing ERP software integrates directly with the IRP to auto-generate e-invoices from sales invoices.
Learn about GST InvoicingAn e-Way Bill is an electronic document required under GST for the movement of goods worth more than Rs. 50,000 within or across Indian states. It contains details of the goods, consignor, consignee, and transporter. Manufacturers must generate e-way bills before dispatching goods. ERP systems automate e-way bill generation by pulling data from invoices and dispatch notes.
Learn about GST InvoicingEnterprise Resource Planning (ERP) is an integrated software system that manages all core business processes of a manufacturing company in one platform. This includes production planning, inventory, purchasing, sales, quality control, accounting, and human resources. For Indian manufacturers, cloud-based ERP systems replace fragmented tools like Tally, Excel, and WhatsApp groups with a single unified system that provides real-time visibility across the entire operation.
Read the Manufacturing ERP GuideAn Engineering Change Order (ECO) is a formal document that authorizes changes to a product's design, materials, or manufacturing process. ECOs are used to improve product quality, reduce costs, or comply with new regulations. ERP systems manage the ECO workflow by tracking change requests, approvals, BOM revisions, and ensuring updated specifications are applied to all future production orders.
Learn about Bill of MaterialsFIFO (First In First Out) is an inventory valuation and material management method where the oldest stock is consumed or sold first. This approach prevents materials from expiring or degrading in storage. FIFO is the preferred inventory method for Indian manufacturers under GST accounting and helps maintain accurate cost of goods sold (COGS) calculations in ERP systems.
Learn about Inventory ManagementFinished goods are fully manufactured products that have passed all quality inspections and are ready for sale or dispatch to customers. In manufacturing accounting, finished goods are a current asset on the balance sheet. ERP systems track finished goods inventory separately from raw materials and WIP, with real-time stock levels, batch traceability, and warehouse location tracking.
Learn about Inventory ManagementA fixed asset is a long-term tangible asset used in manufacturing operations, such as CNC machines, factory buildings, land, vehicles, and heavy equipment. Fixed assets are capitalized on the balance sheet and depreciated over their useful life. ERP systems manage fixed asset registers, track depreciation schedules, schedule maintenance, and calculate asset utilization metrics.
Learn about Finance & AccountingFloor shop control (also called shop floor control) is the set of systems and processes used to manage and monitor production activities on the factory floor in real time. It includes tracking job progress, machine status, operator assignments, and output quantities. ERP-based shop floor control gives managers live dashboards showing which machines are running, idle, or under maintenance.
Learn about Production PlanningA Goods Receipt Note (GRN) is a document used to confirm that goods have been received from a supplier. It records the quantity received, quality inspection results, and condition of materials against a purchase order. In Indian manufacturing, the GRN triggers inventory updates, accounts payable entries, and inward quality inspection workflows in ERP systems.
Learn about Purchase ManagementGoods and Services Tax (GST) is India's unified indirect tax system that replaced multiple central and state taxes in 2017. For manufacturers, GST compliance involves issuing tax invoices with correct HSN codes, filing GSTR-1 and GSTR-3B returns, generating e-invoices and e-way bills, and managing input tax credit. Manufacturing ERP software automates GST calculations based on product HSN codes and transaction types (CGST+SGST or IGST).
Learn about GST InvoicingA gang sheet is a production document that groups multiple small parts or jobs onto a single sheet of material (typically sheet metal or fabric) to minimize waste during cutting operations. Gang sheets optimize material utilization and reduce scrap rates. In Indian sheet metal and stamping industries, ERP systems can calculate optimal gang sheet layouts based on part dimensions and material sizes.
Learn about Sheet Metal & StampingHSN (Harmonized System of Nomenclature) Code is a standardized numerical code used to classify traded products under the Indian GST system. Every manufactured product must have an HSN code on its tax invoices. Auto parts manufacturers commonly use HSN codes in the 8708 (motor vehicle parts), 8413 (pumps), and 8482 (bearings) ranges. ERP software maps HSN codes to products for automatic tax rate determination.
Learn about GST InvoicingHeat number tracking is the process of recording and tracing the heat number (a unique identifier assigned to a batch of metal during smelting) throughout the manufacturing process. It enables manufacturers to trace any finished part back to the specific batch of raw metal it was made from. Heat number tracking is required by automotive OEMs and IATF 16949 standards for critical safety components.
Learn about Quality ControlHuman Resource Management in manufacturing refers to the processes of managing employees, attendance, leave, payroll, and workforce planning. Manufacturing HRM also includes tracking operator skills, shift assignments, overtime calculations, and compliance with Indian labor laws. ERP systems with HRM modules provide a unified view of workforce data alongside production and shop floor operations.
Learn about HR & AttendanceInventory management is the process of tracking, controlling, and optimizing stock levels of raw materials, work-in-progress (WIP), and finished goods in a manufacturing operation. Effective inventory management reduces carrying costs, prevents stock-outs, and ensures production continuity. ERP systems provide real-time inventory visibility across multiple warehouses and factory locations with automatic reorder alerts.
Learn about Inventory ManagementAn inspection checklist is a standardized list of quality parameters and checks that must be verified during incoming material inspection, in-process inspection, or final product inspection. Each parameter has defined acceptable ranges and measurement methods. ERP systems digitize inspection checklists, record results against each parameter, and automatically flag non-conformances when readings fall outside tolerance.
Learn about Quality ControlInward Quality Check is the inspection process performed on raw materials and components when they are received from suppliers. IQC ensures that incoming materials meet the specified quality standards before they enter production. In ERP systems, IQC is triggered automatically when a GRN is created, and materials are placed on hold until inspection results are approved.
Learn about Quality ControlIATF 16949 is the international quality management standard specifically for the automotive industry. It defines requirements for a quality management system (QMS) for automotive production and service parts organizations. Indian auto parts manufacturers supplying to OEMs must comply with IATF 16949, which requires documented processes, full traceability, PPAP submissions, and continuous improvement tracking.
Learn about Quality ControlJob work is a manufacturing arrangement where a principal manufacturer sends raw materials or semi-finished goods to a subcontractor (job worker) for processing. Under Indian GST rules, job work requires specific challans, time-bound return of goods, and compliance documentation. ERP systems track outward and inward job work, pending quantities at each subcontractor, and GST compliance for all job work transactions.
Learn about Job Work TrackingA job card is a production document that records work performed on a specific manufacturing operation. It captures the operator name, machine used, start and end times, quantity produced, quantity rejected, and any issues encountered. Digital job cards in ERP systems replace paper-based tracking and provide real-time production visibility to managers and supervisors.
Learn about Production PlanningJust-In-Time (JIT) is a manufacturing strategy where materials and components are procured and produced only when needed, minimizing inventory holding costs and warehouse space. JIT requires precise demand forecasting, reliable suppliers, and tight production scheduling. Indian manufacturers adopting JIT use ERP systems to coordinate procurement, production, and delivery schedules for lean operations.
Learn about Inventory ManagementKanban is a visual scheduling system used in lean manufacturing to control the flow of materials and work-in-progress on the shop floor. It uses cards or signals to indicate when new materials or components should be produced or moved. Kanban prevents overproduction and reduces WIP inventory. ERP systems support digital Kanban boards that trigger automatic replenishment when stock falls below defined levels.
Learn about Production PlanningA Key Performance Indicator (KPI) is a measurable value that shows how effectively a manufacturing operation is achieving its objectives. Common manufacturing KPIs include OEE, on-time delivery rate, rejection rate, inventory turnover, and production yield. ERP dashboards display KPIs in real time, helping factory owners and managers make data-driven decisions quickly.
Learn about Reports & AnalyticsLead time is the total time from the initiation of a process to its completion. In manufacturing, lead time can refer to procurement lead time (time to receive ordered materials), production lead time (time to manufacture a product), or delivery lead time (time to ship finished goods). Accurate lead time tracking in ERP systems enables reliable delivery commitments and better production scheduling.
Learn about Production PlanningLot traceability is the ability to track a specific batch or lot of materials or products throughout the entire manufacturing and supply chain process. It provides a complete audit trail from raw material receipt to finished product delivery. Lot traceability is mandatory for automotive manufacturers under IATF 16949 and is critical for quality recalls and root cause analysis.
Learn about Quality ControlLIFO (Last In First Out) is an inventory valuation method where the most recently acquired or produced items are consumed or sold first. While LIFO is less common in Indian manufacturing (FIFO is generally preferred for perishable and dated materials), some industries use it for specific cost accounting purposes. ERP systems support both FIFO and LIFO valuation methods with automatic cost calculations.
Lean manufacturing is a production methodology focused on minimizing waste while maximizing productivity. The seven types of waste addressed are overproduction, waiting, transport, over-processing, inventory, motion, and defects. Indian manufacturers adopt lean principles through tools like Kanban, 5S, value stream mapping, and continuous improvement (Kaizen), often managed through ERP-integrated workflows.
Learn about Production PlanningMaterial Requirements Planning (MRP) is a production planning and inventory control system that calculates what materials are needed, how much is needed, and when they are needed. MRP uses the bill of materials, current inventory levels, and production schedules to generate purchase requisitions and production orders. MRP helps Indian manufacturers avoid stock-outs, reduce excess inventory, and ensure timely procurement.
Learn about Production PlanningMake to Order is a manufacturing strategy where production starts only after a confirmed customer order is received. This approach reduces finished goods inventory risk but requires shorter production lead times. MTO is common among Indian auto parts manufacturers who produce custom or low-volume components for specific OEM customers. ERP systems link sales orders directly to production orders in MTO workflows.
Learn about Production PlanningMake to Stock is a manufacturing strategy where products are produced based on demand forecasts and stored as finished goods inventory until customer orders are received. MTS enables faster order fulfillment but carries the risk of excess inventory. Indian manufacturers often use a hybrid approach, with high-volume standard parts produced MTS and custom parts produced MTO, managed through ERP production planning.
Learn about Production PlanningMachine OEE (Overall Equipment Effectiveness) is a metric that measures the productivity of individual machines on the shop floor. It is calculated by multiplying Availability (uptime vs. planned production time), Performance (actual speed vs. ideal speed), and Quality (good parts vs. total parts). ERP systems with machine OEE tracking help Indian manufacturers identify underperforming equipment and schedule preventive maintenance.
Learn about Reports & AnalyticsA Non-Conformance Report (NCR) is a document raised when a product, material, or process does not meet the defined quality standards or specifications. NCRs capture the details of the deviation, root cause analysis, corrective actions taken, and preventive measures. ERP systems manage the full NCR lifecycle and link non-conformances to specific batches, suppliers, machines, or operators for trend analysis.
Learn about Quality ControlNEFT (National Electronic Funds Transfer) and RTGS (Real Time Gross Settlement) are electronic payment systems operated by the Reserve Bank of India for transferring funds between bank accounts. NEFT processes payments in batches while RTGS settles payments individually in real time. Indian manufacturers use these systems for vendor payments, and ERP software tracks payment references against invoices for reconciliation.
Learn about Finance & AccountingAn Original Equipment Manufacturer (OEM) is a company that designs and manufactures the final product (such as a car or motorcycle) that uses components made by other manufacturers (Tier-1 and Tier-2 suppliers). In India, major automotive OEMs include Maruti Suzuki, Tata Motors, Mahindra, and Bajaj Auto. Supplying to OEMs requires strict quality standards, traceability, and on-time delivery tracked through ERP systems.
Learn about OEM & Tier-1 SuppliersOrder fulfillment is the complete process from receiving a customer order to delivering the finished product. It includes order confirmation, production scheduling, manufacturing, quality inspection, packing, dispatch, and delivery. ERP systems provide end-to-end order fulfillment tracking with real-time status updates at every stage, helping manufacturers meet delivery commitments and improve customer satisfaction.
Learn about Sales & CRMOverall Equipment Effectiveness (OEE) is a metric that measures how effectively manufacturing equipment is being utilized. It combines three factors: Availability (actual run time vs. planned time), Performance (actual output vs. theoretical maximum), and Quality (good parts vs. total produced). An OEE score of 85% or above is considered world-class. ERP dashboards display real-time OEE scores per machine and per production line.
Learn about Reports & AnalyticsProduction planning is the process of scheduling manufacturing activities to meet customer demand while optimizing resource utilization. It involves determining what to produce, how much, when, and which machines and operators to assign. ERP-based production planning considers BOM requirements, machine capacity, material availability, and delivery deadlines to create optimized production schedules.
Learn about Production PlanningA purchase order is a formal document sent by a buyer to a supplier authorizing the purchase of specific materials, components, or services at agreed prices and delivery terms. In manufacturing ERP systems, purchase orders are generated from MRP calculations or manual requisitions and are linked to GRN, quality inspection, and accounts payable workflows for complete procurement traceability.
Learn about Purchase ManagementProcess routing defines the sequence of manufacturing operations required to convert raw materials into a finished product. Each step in the routing specifies the operation, workstation or machine, setup time, cycle time, and quality checkpoints. ERP systems use process routings to schedule production, calculate manufacturing costs, and track progress through each operation on the shop floor.
Learn about Production PlanningA packing list is a document that details the contents of a shipment, including item descriptions, quantities, weights, and packaging details. It accompanies the goods during transit and helps the receiver verify the shipment against the dispatch note and purchase order. ERP systems generate packing lists automatically from dispatch orders, ensuring accuracy and reducing shipping errors.
Learn about Dispatch & LogisticsPPAP (Production Part Approval Process) is a standardized process in the automotive industry used to verify that a supplier can consistently manufacture parts that meet all customer specifications. PPAP submissions include sample parts, dimensional reports, material test results, process flow diagrams, and control plans. Indian auto parts manufacturers use ERP systems to manage PPAP documentation and approval workflows for OEM customers.
Learn about Quality ControlQuality Control refers to the processes and procedures used to ensure that manufactured products meet defined quality standards and specifications. In manufacturing, QC includes incoming material inspection, in-process checks, and final inspection before dispatch. Indian auto parts manufacturers following IATF 16949 use ERP software to manage inspection checklists, record test results, and track non-conformances with corrective action workflows.
Learn about Quality ControlQuality Assurance is a proactive approach to preventing defects by establishing processes, procedures, and standards that ensure consistent product quality. Unlike Quality Control (which inspects after production), QA focuses on building quality into the manufacturing process itself. QA activities include process audits, supplier qualification, training programs, and statistical process control (SPC), all managed through ERP quality modules.
Learn about Quality ControlA quotation (also called a quote or estimate) is a formal document sent by a manufacturer to a prospective customer stating the price, delivery timeline, payment terms, and specifications for requested products. In ERP systems, quotations can be converted directly into sales orders upon acceptance, carrying forward all pricing, quantity, and delivery details automatically without re-entry.
Learn about Sales & CRMRaw materials are the basic inputs used in manufacturing to create finished products. In auto parts manufacturing, common raw materials include steel bars, aluminum sheets, castings, forgings, plastics granules, and rubber compounds. ERP systems track raw material inventory with details like supplier, batch number, heat number, grade, and shelf life, enabling full traceability from purchase to finished product.
Learn about Inventory ManagementReorder level (also called reorder point) is the minimum stock quantity at which a new purchase order should be placed to replenish inventory before it runs out. It is calculated based on daily consumption rate and supplier lead time. ERP systems automatically generate purchase requisitions or alerts when stock levels reach the reorder point, preventing production stoppages due to material shortages.
Learn about Inventory ManagementRejection rate is the percentage of manufactured parts or products that fail quality inspection and are deemed unfit for use or sale. It is calculated as (rejected units / total units produced) x 100. A high rejection rate increases manufacturing costs and wastes resources. ERP systems track rejection rates by machine, operator, product, and supplier to identify patterns and drive corrective actions.
Learn about Quality ControlRework refers to the process of correcting a defective or non-conforming product to bring it back within acceptable quality specifications. Rework adds extra cost and time to the manufacturing process. ERP systems track rework quantities, costs, reasons, and the machines or operators involved, helping manufacturers identify root causes and reduce the need for rework over time.
Learn about Quality ControlReturn on Investment (ROI) is a financial metric that measures the profitability of an investment relative to its cost. For ERP implementations, ROI is calculated by comparing the cost savings and efficiency gains achieved after ERP adoption against the total cost of the software, implementation, and training. Indian manufacturers typically see ERP ROI through reduced inventory costs, lower rejection rates, and faster order fulfillment.
Calculate Your ROISAC (Services Accounting Code) is a classification code used under the Indian GST system for services, similar to how HSN codes are used for goods. Manufacturers use SAC codes when invoicing for services like job work, repair work, consulting, or maintenance. ERP software maps SAC codes to service items for automatic GST rate determination on service invoices.
Learn about GST InvoicingSafety stock is the extra inventory maintained as a buffer to protect against uncertainties in demand and supply. It acts as insurance against supplier delays, sudden order spikes, or production issues. The optimal safety stock level is calculated based on demand variability, lead time variability, and the desired service level. ERP systems automatically factor safety stock into reorder calculations and MRP runs.
Learn about Inventory ManagementA sales order is a confirmed document that records a customer's request to purchase specific products at agreed prices and delivery dates. In ERP systems, a sales order drives production planning (if make-to-order), inventory reservation, dispatch scheduling, invoicing, and revenue recognition. Sales orders provide visibility into upcoming demand and help manufacturers plan production capacity accordingly.
Learn about Sales & CRMScrap rate is the percentage of raw materials or work-in-progress that becomes unusable waste during the manufacturing process and cannot be reworked. It is calculated as (scrap quantity / total input quantity) x 100. Reducing scrap rate directly improves material utilization and profitability. ERP systems track scrap by operation, machine, and material to identify where waste occurs and drive process improvements.
Learn about Production PlanningThe shop floor is the area in a manufacturing facility where production activities take place, including machining, assembly, inspection, and packaging. Shop floor control in ERP refers to real-time management and tracking of production activities, machine status, operator assignments, and output recording on the factory floor. Digital shop floor modules replace paper-based job cards with tablet or phone-based data entry.
Learn about Production PlanningStatistical Process Control (SPC) is a method of using statistical techniques to monitor and control a manufacturing process. SPC involves collecting data from production (e.g., dimensional measurements), plotting control charts, and identifying when a process is going out of control before defects occur. ERP quality modules with SPC capabilities help Indian manufacturers meet IATF 16949 requirements for process monitoring.
Learn about Quality ControlSubcontracting is the practice of outsourcing specific manufacturing operations to external vendors (subcontractors). Common subcontracted operations in Indian manufacturing include heat treatment, surface coating, plating, painting, and specialized machining. ERP systems manage subcontracting by tracking material issued to subcontractors, receiving processed goods, quality inspection on receipts, and handling associated costs and GST compliance.
Learn about Job Work TrackingTally integration refers to the ability of a manufacturing ERP system to exchange data with Tally, India's most widely used accounting software. Many Indian manufacturers use Tally for accounting even after adopting ERP for production and inventory. ERP systems with Tally integration can sync invoices, purchase entries, payment records, and ledger data, eliminating double entry and ensuring financial data consistency.
Learn about IntegrationsA tax invoice is a legally required document issued by a registered GST dealer when supplying goods or services. It must include the supplier's and buyer's GSTIN, invoice number, date, HSN/SAC codes, taxable value, and applicable GST amounts (CGST, SGST, or IGST). Manufacturing ERP systems generate GST-compliant tax invoices automatically with all mandatory fields populated from master data.
Learn about GST InvoicingThroughput is the rate at which a manufacturing system produces finished goods over a given period of time. It is typically measured in units per hour, units per shift, or units per day. Higher throughput with consistent quality indicates better production efficiency. ERP systems track throughput per machine, per line, and per product to help manufacturers identify capacity constraints and optimization opportunities.
Learn about Reports & AnalyticsTool management is the process of tracking, maintaining, and optimizing cutting tools, jigs, fixtures, and other tooling used in manufacturing operations. It includes monitoring tool life (number of parts or hours), scheduling tool changes, managing tool inventory, and tracking tool costs per part. ERP systems with tool management modules help prevent unplanned downtime caused by worn-out or missing tools.
Learn about Production PlanningTraceability is the ability to track the complete history of a manufactured product, from raw material procurement through production and delivery to the end customer. It includes batch numbers, heat numbers, machine and operator records, inspection results, and dispatch details. Traceability is a mandatory requirement under IATF 16949 for automotive suppliers and is managed end-to-end through ERP systems.
Learn about Quality ControlUnit of Measurement (UOM) is the standard unit used to quantify and track inventory items in a manufacturing system. Common UOMs include pieces (Pcs), kilograms (Kg), meters (Mtr), liters (Ltr), and sets. ERP systems support multiple UOMs per item (e.g., purchasing in kilograms but consuming in pieces) with automatic conversion factors for accurate inventory tracking and costing.
Learn about Inventory ManagementVendor rating is a systematic process of evaluating and scoring supplier performance based on criteria such as quality, delivery timeliness, pricing, and responsiveness. Indian manufacturers use vendor ratings to make informed purchasing decisions, negotiate better terms, and maintain a reliable supply chain. ERP systems automate vendor scoring based on GRN data, rejection rates, and delivery performance history.
Learn about Purchase ManagementValue Stream Mapping is a lean manufacturing tool used to visualize and analyze the flow of materials and information required to bring a product from order to delivery. VSM identifies value-added and non-value-added activities, highlighting waste and improvement opportunities. Indian manufacturers use VSM workshops combined with ERP data analysis to redesign processes for greater efficiency and reduced lead times.
Learn about Production PlanningA work order is a document that authorizes and tracks the production of a specific quantity of a product. It contains the BOM, process routing, required materials, target quantity, and scheduled dates. In ERP systems, work orders drive material requisitions, shop floor job cards, and production tracking. They provide real-time visibility into production progress, material consumption, and completion status.
Learn about Production PlanningWarehouse management is the process of controlling and optimizing the storage, movement, and tracking of materials within a warehouse or multiple warehouse locations. It includes receiving, put-away, storage, picking, packing, and dispatch operations. ERP-based warehouse management uses bin locations, barcode scanning, and FIFO enforcement to ensure accurate inventory and fast order fulfillment in Indian manufacturing facilities.
Learn about Inventory ManagementWork-in-Progress (WIP) refers to partially completed products that are currently at various stages of the manufacturing process. WIP inventory includes raw materials that have entered production but are not yet finished goods. Tracking WIP accurately is critical for cost accounting and production planning. ERP systems monitor WIP quantities and values across all production stages, helping manufacturers control production flow and reduce excess WIP.
Learn about Production PlanningWarranty management is the process of tracking product warranties, handling warranty claims, managing returns, and processing replacements or repairs within the warranty period. For Indian manufacturers, warranty management includes recording warranty terms per product, tracking claim history, analyzing failure patterns, and managing the cost of warranty replacements. ERP systems automate warranty tracking and link claims to production batches for root cause analysis.
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