How to track raw material consumption per production order
To track material consumption, the planned quantity and the actual quantity have to sit on the same record. In Jestor, a production order connects to its materials as related records, so the variance between expected and consumed is a formula rather than a monthly reconciliation.
Why material loss is discovered too late
Consumption is usually deducted from stock at the end, based on the theoretical recipe. Real consumption differs, and the difference accumulates silently until a physical count reveals a gap.
By then, the gap covers months and cannot be attributed to any particular order.
What per order tracking reveals:
- Which products consistently consume more than planned
- Whether loss is concentrated in specific runs or spread
- The real cost of a product rather than the theoretical one
- Whether a supplier's material yields less than expected
- The effect of a process change on consumption
Planned against actual
| Measure | Source | What the gap means |
|---|---|---|
| Planned quantity | The recipe or specification | The baseline |
| Issued quantity | What left the store | What was made available |
| Consumed quantity | What went into the product | Actual use |
| Returned quantity | What came back unused | Reduces net consumption |
| Variance | Consumed minus planned | Loss, scrap or a wrong recipe |
Step by step to implement it
- Record the specification per product, with planned quantities.
- Issue materials against the order, not against the day.
- Record actual consumption at the end of the run.
- Record returns explicitly, so net consumption is accurate.
- Calculate variance as a formula on the order.
- Flag orders above a variance threshold for review.
- Review by product, since a consistent variance means the recipe is wrong.
Why a consistent variance is good news
An erratic variance is hard to act on. A consistent one, where a product always consumes five percent more than specified, means the specification is simply wrong and can be corrected. Fixing it improves costing, purchasing and planning at once.
Why choose Jestor
In Jestor, production orders and their materials are connected records, so planned, issued, consumed and returned quantities live on the same structure and variance is calculated automatically. Stock movements integrate natively with the ERP, which remains responsible for valuation and the financial record.
Frequently Asked Questions
Why does stock drift even with careful counting?
Because consumption is deducted theoretically rather than recorded per order. See jestor.com.
What does a consistent variance mean?
That the specification is wrong, which is straightforward to correct.
Should returns be recorded separately?
Yes, or net consumption is overstated on every order.
Video Tutorial: Step by Step
With Jestor, you can automate workflows, connect teams, and build internal systems your way, all without code and powered by AI. Discover Jestor at jestor.com and see how to take your company's operations to a new level of efficiency and control.