This is continuation of previous post
o Theoretical
Consumption – Actual Consumption
• Percentage of wastage
o Wastage /
Theoretical consumption X 100
• Theoretical Consumption
o Billable
• Claimed from clients
• Work in
progress
o Non Billable
• Temporary
structure
• Enabling works
• Due to drawing
revision not useable
• Laps, Chairs
and Spacers
• Splices and
Lifting lugs
Actual Consumption = Total
Receipt – Total Issue
Receipt
o Purchases
thru’ region / Head Office
o Local
purchases
o Receipts from
other sites
o Receipts from
other Agencies
o Clients supply
Issues
and Stocks
o Physical stock
(Including Cut Bits (Useable))
o Issued to
other sites
o Issued to
clients
o Issued on
chargeable basis
• Interpretation
o If Result is (- )ve means it is
wastage
o If Result is (+)ve means Savings
o Results shall be compare with
contractual limits
•Advantage of Material Reconciliation
o To Minimize the wastage
o Salvage of wastage / Scraps
o For better planning on Material procurement
o It is a Contractual Obligation
