ERPDrive for Engineering Job Work & Contract Manufacturing
Run customer free-issue (FOC) material, operation-level job cards, tooling life, and dual-role ITC-04 (you're both job worker AND principal) - in one cloud system with full GST traceability.
The pain points generic ERP doesn't solve
Tally and BUSY handle accounting. SAP and Microsoft Dynamics need 4-month implementations. Neither is built for these specific engineering job work & contract manufacturing pain points:
Customer free-issue (FOC) material vs own material
Customers send forgings or castings for machining (your job work). You also buy and machine your own raw material (your own production). Inventory must keep these completely separate - FOC stock cannot be your stock - otherwise you under-report turnover and over-pay GST.
Operation-level job cards (turning, milling, grinding, plating)
Each operation is a separate cost: VMC, HMC, grinding, drilling, plating, painting. Per-operation hours, scrap, and rate are needed for true job costing. One job card per finished part is too coarse.
Tooling life tracking (inserts, drills, hobs)
A carbide insert lasts ~800 pieces; a drill bit ~3,000 holes. Without tool life tracking, you over-replace (wasting consumables) or under-replace (causing dimensional rejects).
Customer-specific QA per drawing / PFD
OEM customers send a Process Flow Diagram (PFD), Control Plan, and PPAP requirements per part. Your inspection plan must match each customer's PFD exactly. Generic QA fails OEM audits.
Operations outsourced to sub-vendors (heat-treat, grinding)
You receive FOC forgings, do op1-op4 in-house, send to a sub-vendor for op5 (heat-treat), receive back, finish op6-op8, dispatch. Each leg has GST challan and EWB implications.
Dual-role ITC-04 (you're job worker AND principal)
On customer FOC jobs you file ITC-04 Table 5A as job worker. On your sub-contracted heat-treat you file Table 5A as principal. Different sections of the same form. Excel registers mix these up; audits catch it.
The ERPDrive demo flow for your factory
Here is exactly what we will show you in a 30-minute demo. Every screen uses real industry workflows, not generic sample data:
- Customer FOC material receipt (delivery challan acknowledgment)
Customer sends 500 forgings on their delivery challan. You acknowledge receipt in the system. The forgings are added to a separate FOC stock zone - not your own inventory. Customer ledger shows: 500 forgings due back as finished parts.
- Process routing per part
For part XYZ: turning (op10) → drilling (op20) → milling (op30) → heat-treat outsourced (op40) → grinding (op50) → inspection (op60) → packing (op70). Each operation has standard time, machine, operator skill required.
- Job card per operation per machine
Operator scans job barcode at HMC, marks start. After 50 pieces, marks complete with qty good + qty rejected. System captures: machine, operator, cycle time, scrap reason. Per-op costing builds automatically.
- Tool life tracking
Each CNC tool (insert, drill, tap) has a tool master with expected life (pieces or holes). System decrements as production runs. At 80% of life, alert; at 100%, force replacement before next job. Stock master shows live tool count.
- Customer-specific inspection per PFD + control plan
Each customer-part combination has its own control plan: which dimensions to inspect, frequency (every piece / 1 in 10 / SPC), method (vernier / micrometer / CMM), Cpk target. Operator follows the plan; readings stored against piece serial.
- Outward sub-contract (heat-treat) with EWB
After op30, parts go to a heat-treat sub-vendor. System generates GST challan (you as principal) + EWB. Logs the 1-year deemed-supply deadline. Receipt closes the cycle.
- Outward dispatch as job worker
Finished parts return to customer. System generates a job-worker delivery challan (not a tax invoice - this is FOC material being returned). Customer's challan number cross-referenced. EWB generated.
- Dual-role ITC-04 quarterly
Quarterly, one click generates ITC-04: Table 5A as job worker (FOC parts returned to customer), Table 5A as principal (parts sent to heat-treat sub-vendor). JSON exported for GST portal.
Modules tailored for engineering job work & contract manufacturing
Out-of-the-box features (no custom development needed):
FOC material tracking (separate stock zone)
Customer-owned stock is segregated; never enters your own inventory.
Operation-level routing with std time
Each part has its own process route; standard cycle time per op.
Job cards per op + per machine
Operator scan-in / scan-out captures actual time, output, scrap per op.
Tool life library
Inserts, drills, hobs - track life by pieces or holes; auto-alert at 80%.
Customer-specific QA plans
Per-customer control plan; per-piece readings stored for traceability.
Dual-role ITC-04
Auto-segregates worker-role vs principal-role transactions; single ITC-04 form.
GST and compliance
Indian regulatory requirements handled natively:
Customer story
VSR Auto Engineering Private Limited
210 employees, ₹47 cr turnover, contract machining for OEM tier-1 customers
"We were filing ITC-04 manually by export-and-merge from three Excel files - took 4 days every quarter. The dual-role calculation was where we made mistakes. ERPDrive does it in one click and the file imports cleanly to the GST portal. Last audit, we had zero queries on job-work for the first time in 7 years."Measured outcomes
- ITC-04 filing time: 4 days → 30 minutes per quarter
- Zero GST audit queries on job-work in the year since go-live
- Tool consumption cost down 18% (visibility eliminated premature replacement)
Pricing for your size
Frequently asked questions
How does ERPDrive handle customer FOC (free-issue) material?
FOC material is received against a customer delivery challan and goes into a customer-owned stock zone in your system. It never mixes with your own raw material inventory. Your customer ledger shows what they have entrusted to you. When finished parts go back, the FOC quantity is debited.
Can ERPDrive track job-work where I'm both worker and principal?
Yes - this is the most common engineering job-work pattern. You receive FOC from customer (you're the worker), do most operations in-house, send to heat-treat or plating sub-vendor (you're the principal), receive back, finish, dispatch to customer. ITC-04 handles both roles in one quarterly filing.
How does operation-level job costing work?
Each part has a process route: op10 turning, op20 milling, op30 heat-treat, etc. Each operation has a standard time and a machine rate. As jobs run, actual time × machine rate accumulates the actual cost per operation. Variance from standard is visible per job.
Does ERPDrive track tool life for CNC inserts?
Yes. Each tool item (insert grade XYZ) has expected life (pieces or holes). System decrements as production runs against the tool. At 80% of life, alert to procurement. At 100%, force replacement before next job.
Can we run customer-specific inspection plans (PPAP, control plans)?
Yes. Each customer-part combination has its own control plan: dimensions to inspect, frequency, method, Cpk target. Operator follows the plan from the screen; readings are stored against piece serial. CMM data can be imported. Customer requests for PPAP submission folders are one-click.
What HSN/SAC code applies to engineering job work?
Engineering job work falls under SAC 9988 (manufacturing services on physical inputs owned by others). Standard GST rate is 12% for most engineering job-work services. ERPDrive auto-applies the correct SAC and GST rate based on transaction type.
How long does implementation take for a contract manufacturer?
1-2 weeks for a 100-300 employee unit. Master setup (item, customer FOC items, process routes, control plans) is the longest step; we accelerate with templates per OEM customer.
See ERPDrive for your engineering job work & contract manufacturing
Free 30-minute personalized demo using your actual products, BOMs, and pain points. Scheduled within 24 hours.