⚙️ Case Study · Foundry ERP · Kolhapur

How a ₹100 Crore Kolhapur
Casting Group Fixed Reporting,
Costing & Shop-Floor Visibility

A multi-unit foundry and casting group in Kolhapur — managing SG iron and grey iron production across two manufacturing sites — replaced five disconnected systems and manual registers with a single FoundryX ERP platform. The result: live management dashboards, accurate per-casting cost, real-time stock at every production stage, and zero end-of-month reconciliation firefighting.

Client
Large Foundry Group, Kolhapur
Turnover
~₹100 Crore
Products
SG Iron & Grey Iron Castings
Solution
FoundryX ERP + HRMS
The Challenge

Five Operational Problems That Were Slowing the Group Down

At ₹100 Crore scale, running two foundry units and a machining operation on disconnected systems wasn't just inconvenient — it was creating measurable cost leakage, delayed decisions, and management visibility gaps that were impossible to close without a unified platform.

Group Profile at the Time of Engagement

Two SG iron and grey iron casting units in Kolhapur's industrial clusters, one in-house machining facility, and a trading unit — all operating on a mix of Tally, standalone production software, Excel registers, and paper records. Monthly management review meetings were driven by data compiled over 5–7 days by the accounts team, which was already outdated by the time it was presented.

2Casting units
1Machining unit
5+Disconnected systems
5–7 daysMonthly report lag
SG & Grey IronPrimary metals
Auto sectorPrimary market
📊

Management Reporting Failures

Monthly P&L, production summary, and customer-wise performance reports were compiled manually from Tally, the production register, and dispatch records. The process took 5–7 working days every month — and the output was still questioned for accuracy because data sources didn't reconcile. Critical decisions on pricing, procurement, and capacity were being made on stale information or gut feel.

Impact: Management flying blind for the first week of every month. Strategic decisions delayed or made without reliable data. Board presentations built on estimates.
⚖️

Product Costing & Margin Variance

Standard cost per casting was set once at the beginning of the year and rarely updated. Actual metal yield, rejection-adjusted scrap cost, real power per tonne, and machining subcontracting charges were never captured against individual production orders. The result: the group was quoting new RFQs and renewing contracts without knowing the actual margin — and discovering losses only at year-end audit.

Impact: New RFQs priced on outdated standards. Margin erosion undetected until annual accounts. Unable to identify which product lines were profitable.
🧩

Fragmented Multi-Unit Systems

Each unit operated its own set of records — Unit 1 on Tally + Excel, Unit 2 on a standalone foundry module, the machining unit on a separate job-work register, and the trading company on yet another Tally instance. Inter-unit material transfers, job work challans between units, and consolidated group reporting required manual data collection from all four systems — a reconciliation nightmare every quarter.

Impact: Inter-company reconciliation taking 3–4 days per quarter. Group-level P&L unavailable in real time. Audit preparation consuming weeks of staff time.
📦

Stock Tracking Across Production Stages

Inventory was tracked only at two points: raw material when received and finished goods when dispatched. Everything in between — WIP in moulding, castings in shot blasting, semi-finished items with the machining subcontractor, and fettled castings waiting for inspection — existed only in paper registers or operator memory. Physical stock-takes revealed 8–12% discrepancies between book stock and actual stock every quarter, with no audit trail to explain the gap.

Impact: 8–12% quarterly stock discrepancies. Unable to trace missing castings. Subcontractor disputes over material-at-vendor quantities. Insurance valuation always inaccurate.
🔗

Disconnected Shop Floor — Production Data Reached Finance 30 Days Late

The shop floor ran entirely on paper job cards and daily production registers. Data from production — heats completed, rejections recorded, mould consumption, and casting weights — was physically carried to the accounts department at month-end for entry into Tally. This 30-day lag meant that stock, WIP, and cost of production figures were always one month behind reality. Quality issues identified on the shop floor never reached the customer data in the commercial system — rejection analysis was impossible because the data lived in different places.

Impact: 30-day lag between production events and financial records. Rejection root-cause analysis impossible. Customer complaints could not be traced to production data. Working capital calculations always based on outdated figures.
The Solution

FoundryX ERP Modules Deployed Across the Kolhapur Group

Quantbit Technologies implemented FoundryX ERP — built on open-source ERPNext — across all group entities in a single instance, with separate books of accounts per company and a consolidated group dashboard for management. Implementation was phased to ensure operations continued uninterrupted.

01

Multi-Company ERPNext Setup

All group entities — two casting units, machining unit, trading company — configured in a single ERPNext instance with shared master data and separate ledgers. Inter-company transactions automated.

02

Heat & Melt Management

Digital heat record for every melt: charge composition, furnace type, pour temperature, alloy grade, heat number, and castings produced. Heat number linked forward to all downstream records.

03

Pattern & Mould Tracking

Full pattern register across both casting units — location, condition, cavity count, last used, repair history. RFID-ready. Production halts due to missing patterns eliminated.

04

Real-Time Stage-Wise Production

WIP tracked at every stage: moulding → pouring → knockout → shot blasting → fettling → inspection → dispatch. Stock balance at each stage updated in real time by shop-floor operators on tablets.

05

Rejection Analysis — Heat, Cavity & Defect Level

Every rejection logged against heat number, cavity, defect code, operator, and shift. Automated daily Pareto chart showing top 3 rejection causes. Corrective action workflow with owner assignment.

06

Machining Subcontracting Control

Castings sent to in-house machining unit and external vendors tracked via outward challan. Vendor-wise pending quantity dashboard. Partial returns and vendor-side rejection captured automatically.

07

Product Costing & Variance Module

Actual cost per casting calculated from live data: metal charge weight, furnace power, labour time, overhead absorption, and machining cost. Standard vs actual variance report generated automatically at period-end for every item.

08

Quality Inspection & PPAP Records

In-process and final inspection records linked to heat number. Customer-specific quality plans, dimensional inspection records, hardness test results, and PPAP documentation generated from live production data.

09

Dispatch, Traceability & Customer CoC

Heat-wise dispatch linking every shipment to its source heat. Certificate of Conformance, packing list, and e-way bill generated in one click. Customer portal access for inspection records on request.

10

Integrated Finance, GST & Accounts

Production entries auto-post to general ledger. GST invoices, e-way bills, and TDS calculated from live dispatch data. Month-end closing driven by system — not manual data collection.

11

HRMS & Payroll — All Units

Biometric attendance for all casting and machining operators, automated payroll with PF/ESI compliance, gang-wise attendance for contract workers. All four entities on a single HRMS instance.

12

Group Management Dashboard

Live dashboard for MD and CFO: group-level revenue, production vs plan across both units, combined rejection rate, raw material valuation, and working capital — updated in real time without any manual compilation.

Implementation Roadmap — Phased Across Group Entities
Phase 1
Weeks 1–6
Multi-company setup, masters migration, heat management, production tracking go-live at Unit 1
Phase 2
Weeks 7–12
Rejection analysis, costing module, subcontracting, Unit 2 go-live
Phase 3
Weeks 13–18
Finance integration, GST, HRMS all units, quality & dispatch traceability
Phase 4
Weeks 19–22
Group dashboard, variance costing, UAT, full go-live + hypercare support
Results

Measured Outcomes After FoundryX Go-Live

Results measured after the first full quarter post-implementation.

[ METRIC ]
Management report generation time
(was 5–7 days, now ?)
Ask: How long does it take to get the monthly report now?
[ METRIC ]
Reduction in casting rejection rate
vs pre-implementation baseline
Ask: What was avg rejection % before and after FoundryX?
[ METRIC ]
Reduction in quarterly stock discrepancy
(was 8–12% variance)
Ask: What is the stock variance at physical count now?
[ METRIC ]
Product lines with costing variance
identified & re-priced
Ask: How many items had significant standard vs actual gap in Q1?
[ METRIC ]
Month-end financial closing time
(was manual, 7+ days)
Ask: How many days does month-end close take now?
[ METRIC ]
Staff hours saved on monthly
data compilation & reconciliation
Ask: How many person-hours per month were spent on reports before?
📝

For Quantbit team: Contact the client's MD, GM Operations, or CFO at the Kolhapur group to collect the six numbers above. Even 3–4 confirmed figures with real data will transform this into the most powerful lead-conversion asset on the FoundryX page. Suggested question framing: "On a scale of 1–10, how has X improved since go-live? Can you share the actual numbers?"

Client Voice

What the Client Said

📝 Placeholder — replace with actual quote from the MD, GM, or CFO.

Ideal topics for the quote: (1) How long did management reporting take before vs after? (2) The first time they saw live production and cost data together. (3) What surprised them most about having real-time group visibility.

Example format: "Before FoundryX we spent the first week of every month chasing data from four different systems just to prepare the management review. Now the dashboard shows everything live — production across both units, rejection rates, and margin by product. Our pricing decisions have become much more confident."
MD
[Name], Managing Director — Kolhapur Foundry Group
Large Casting Group · Kolhapur, Maharashtra · ~₹100 Crore turnover
FAQ

Foundry ERP — Questions from Foundry Owners

Questions foundry MDs and GMs ask before committing to FoundryX ERP.

How does FoundryX ERP solve product costing variance in a foundry?
FoundryX ERP calculates per-casting cost in real time by capturing actual metal charge weight, furnace power consumption, labour time per operation, overhead absorption, and machining subcontracting cost — all linked to the production order and heat number. At period-end, it compares actual cost against the standard cost per item and generates a variance report showing exactly where cost deviated: raw material price, scrap %, power per tonne, or labour efficiency. This gives management the data to price correctly, identify cost-reduction opportunities, and respond to customer RFQs with confidence instead of guesswork.
What reporting problems does FoundryX ERP fix for foundry management?
In most foundries without ERP, management reports are compiled manually from multiple registers, Excel sheets, and standalone systems — a process taking 3–7 days per month and still producing unreliable figures. FoundryX ERP generates live management reports from real-time operational data: production vs plan, heat-wise yield, rejection Pareto, customer-wise delivery performance, raw material consumption vs standard, and P&L by product line. Reports run in seconds from the dashboard — eliminating the monthly manual compilation entirely.
How does FoundryX handle multi-unit foundry group operations in Kolhapur?
FoundryX runs on ERPNext with native multi-company and multi-plant support. A Kolhapur foundry group with two or more casting units, a machining unit, and a trading company can all operate within the same ERPNext instance — sharing a common master data set while maintaining separate books of accounts per entity. Inter-unit material transfers, job work challans between group companies, and consolidated group P&L are all handled natively without any manual reconciliation.
How does FoundryX ERP improve stock and inventory accuracy in a foundry?
FoundryX tracks stock at every stage: raw metal in the store, WIP in the moulding bay and shot blasting area, semi-finished castings with subcontractors, and finished goods in the despatch store. Stock is updated in real time as each production stage is logged — eliminating the monthly physical stock-take as the only reliable inventory count. Batch and heat-number tracking allows the system to know exactly which raw material lot is embedded in which casting, enabling FIFO valuation and accurate cost of production.
What is the typical ROI timeline for a Kolhapur foundry implementing FoundryX ERP?
Most Kolhapur foundry clients see measurable ROI within 3–6 months of go-live. The fastest returns come from: (1) rejection rate reduction — even a 2% improvement on a 2,000-tonne/month operation saves ₹15–25 lakhs per year in scrap metal and rework cost; (2) raw material yield improvement through accurate charge-weight tracking; (3) eliminating billing errors and customer disputes. Slower but larger returns come from better pricing based on real product cost data, which typically improves margin on new RFQs by 3–8%.

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