Difficulties in Job Work Process

Difficulties in Job Work Process

Job Work Out

Following are the
problems faced when job is delegated
to a Job Worker
·        
No standard practice to delegate a Job
      In real business scenario, the
standard procedure of delegating a job –
·        
Raising the Job Work out Order
·        
Material Transfer Out (from the premises of
Principal Manufacturer/directly from the supplier of Raw materials to the Job
worker)
·        
Accounting the receipt of finished goods
·        
Accounting the Bill from the Job Worker
·        
Payment to the Job Worker
is not followed by all the principal
manufacturers. The procedure of delegation of Job varies from organisation to
organisation depending on the nature of the Job delegated or type of transaction
(depending on the regularity) or relationship with the Job worker.
·        
Monitor
& Analysis of Material
·        
Tracking Job Work wise – Raw material to be
issued, actual raw material despatched, variance in quantity of raw materials
as against the agreed Bill of Material
·        
Tracking quantity of Finished goods to be
received, actual receipt and balance
·        
Ageing of Stock (Raw material /semi-finished
goods) lying with the Job Worker
·        
Preparing Material Movement Registers
·        
Cost/Profit
Tracking: Principal manufacturer can ascertain the cost of
manufacture of a job delegated. These statistics can be used to compare and
analyse the cost as against cost of manufacture of goods in house or by other
Job workers.
·        
Meeting Statutory Requirements
·        
Annexure
II – Challan for despatching the inputs, Raw-Materials,
semi-finished goods to the Job Worker
·        
Annexure
IV – Register for Material tracking (by Principal company if
excise applicable)

 

Job Work In

Following are the
problems faced when a Job is received by the Job worker from the Principal
Manufacturers
·        
No standard practice for receiving a Job
·        
In real business scenario, the standard
procedure of receiving a job  –
·        
Receipt of Job Work In Order
·        
Material Transfer In (from the premises of
Principal Manufacturer/directly from the supplier of Rawmaterials of Principal
Manufcturer)
·        
Accounting Delivery of finished goods
·        
Raising Invoice for billable work/stock
·        
Receipt of Payment from the Principal
Manufacturer
is not followed by all the Job
workers. The procedure of receiving Job varies from organisation to
organisation depending on the nature of the Job or type of transaction
(depending on the regularity) or relationship with the Principal Manufacturer.
·        
Monitor & Analysis of Material Received
·        
Tracking Job Work wise – Raw material to be
received, actual raw material received, variance in quantity of raw materials
as against the agreed Bill of Material
·        
Tracking quantity of Finished goods to be
despatched, actual Quantity Delivered and balance
·        
Preparing Material Movement Registers
·        
Job Worker Invoice
·        
Tracking of own material consumption by the Job
Worker for a job
·        
Billing for the own material consumed for the
Job
·        
Cost/Profit
Tracking: Job Worker can ascertain the cost of manufacture of a
job received. These statistics can be used to compare and analyse the
cost/profit of job work carried out for different Principal Manufacturers .
·        
Meeting Statutory Requirement
·        
Annexure
V – Register for Material tracking (by Job Worker if excise
applicable).

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