Current rejection rate
Industry average: 6–12% grey iron · 4–8% SG iron
Monthly production
Good castings produced per month in tonnes
Total employees
Shop floor + office + accounts staff
Manual tracking hrs / week
Heat records, rejection logs, dispatch registers, reports
Metal cost per tonne (₹)
Blended average: pig iron + scrap + ferro-alloys
Avg staff cost / month (₹)
Blended average across all roles including overheads
Estimated annual saving
₹—
per year
Rejection cost saved
₹—
per year
Labour hours freed
—
hours per year
Error / billing saving
₹—
per year
—
Estimated ERP payback period
Based on FoundryX implementation cost of ₹3–8 lakhs for this profile. Actual varies by scope.
Saving breakdown by category
1. Rejection rate reduction (35% improvement on current rate)
—
2. Manual tracking labour saving (60% of current time)
—
3. Reporting efficiency gain (4 days → 1 day month-end)
—
4. Billing errors & customer dispute elimination (0.5% production value)
—
Total estimated annual saving
—
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Frequently asked questions about foundry ERP ROI
How much can a foundry save by implementing ERP software?
A typical Indian foundry producing 500 tonnes per month with an 8% rejection rate can save ₹35–55 lakhs per year. Savings come from: (1) rejection rate reduction of 35–40% in Q1 through heat-wise rejection analysis — approximately ₹32 lakhs/year for a 500T/month foundry at ₹48,000/tonne; (2) labour efficiency from eliminating manual registers — ₹15–25 lakhs/year; (3) billing error elimination — ₹4–6 lakhs/year. Implementation cost of ₹3–8 lakhs is typically recovered within 3–6 months.
What is the average rejection rate in Indian iron foundries?
Average rejection in Indian grey iron foundries is 6–12% of gross production. SG iron foundries typically see 4–8%. Foundries without heat-tracking ERP tend toward the higher end — unable to identify root cause at the heat, cavity, or shift level. FoundryX clients report 35–40% rejection reduction within the first quarter across Kolhapur, Rajkot, and Coimbatore clusters.
How long does foundry ERP take to show ROI?
Most foundries see measurable ROI within 3–6 months of go-live. Rejection reduction is visible in 4–8 weeks as heat-wise data accumulates. Labour savings are immediate from day one. For a FoundryX implementation at ₹5 lakhs cost with a 500T/month foundry at 8% rejection, payback typically occurs in 4–5 months.
How accurate is this ROI calculator?
The calculator uses conservative estimates based on actual FoundryX implementation results: 35% rejection reduction (clients report 35–40%), 60% manual tracking time savings, and 0.5% of production value in error savings. It is designed to give a directionally correct planning estimate — not a guarantee. Actual results depend on your foundry's processes, metal type, customer requirements, and implementation quality. Book a free demo for a detailed assessment tailored to your operation.
Methodology:
Rejection saving = monthly rejection volume (production × rejection%) × metal cost × 35% reduction × 12.
Labour saving = weekly tracking hours × 52 weeks × 60% elimination × blended hourly rate.
Reporting efficiency = accounts staff count (5% of total) × 3 days saved per month × daily rate × 12.
Error saving = monthly production value × 0.5% × 12.
Payback = ₹500,000 mid-range implementation cost ÷ annual saving × 12 months.
All estimates are indicative for planning purposes. Results vary by foundry size, process type, metal grade, and implementation scope.
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