Raw Material Comparison

Report Module Guide: Raw Material Comparison Report (Material Usage Variance Report)

Module Location

PPIC > Reports > Raw Material Comparison Report

Module Objective

The Raw Material Comparison Report module is used to generate an analytical report that compares the actual usage of raw materials with the standard quantity that should have been used (based on the BOM/recipe) for each Work Order. This report calculates the material usage variance, both in quantity and as a percentage, to identify efficiency or waste.

1. Report Parameters (Filter)

The main page of this module is a form containing various parameters to customize the report that will be generated.

Here is an explanation for each parameter:

• View: A filter for Item/Service (function is unclear).

• Work Order Date: Specify the From and To date range for the Work Orders whose material usage will be analyzed.

• Work Order Number: Select All or Select Work Order Number to focus on a specific production batch.

• Item/Service Name: Select All or Select Item/Service Name to focus on a specific finished good.

2. Steps to Generate the Report

Step 1: Set Report Parameters

Define the parameters you need, especially the Period and the Work Order Number or Item/Service Name if you want to focus on a specific analysis.

Step 2: Generate the Report

After all parameters are set, click one of the two buttons at the bottom:

• [Display Report]: To preview the comparison report directly on your screen.

• [Export to MS Excel]: To download the report data in an Excel file format.

3. Reading the Report (Report Content)

The generated report is a comparative analysis of raw material usage per Work Order.

Key Column Explanation

• Raw Material Used: Details each raw material that was used.

• Std Qty: The standard quantity of raw material that should have been used according to the BOM.

• Actual Qty: The actual quantity of raw material issued from the warehouse.

• Difference: The quantity variance (Actual Qty - Std Qty). A negative value means more efficient; a positive value means waste.

• % Difference: The variance as a percentage.

Tips & Important Notes

• This report is very similar to the Report on Raw Materials / Supporting Materials Used, but may have a slightly different focus or format. Both are used to analyze material usage variance.

• Use the Difference and % Difference columns to identify which raw materials or Work Orders have the highest level of waste.

• This is a key analysis report for Production Managers and Cost Accountants.