Stage-Wise Inventory Verification and Valuation for a Forging Company with Inveck
The Right Value for Every Stage of WIP
A forging company in India now records the production stage of every item counted on the shop floor in the Inveck app — so work-in-progress is valued at the stage it has actually reached, and reported stage by stage in a single columnar view.
These numbers don’t happen by chance. See how it was done
Who is the client?
The client produces closed-die forgings for automotive and industrial customers in India. Steel billets move through a chain of operations — cutting, forging, trimming, heat treatment, shot blasting, machining and inspection — before dispatch.
At any moment, the same part number sits on the floor at several of these stages. Each stage adds material cost, conversion cost and value, so a forged blank and a machined, inspected part are worth very different amounts.
Book a DemoChallenges that held them back
Physical verification counted how many pieces of each part were on the floor, but not how far along each piece was. Valuation had to guess.
Quantity without stage
Count sheets showed 2,000 pieces of a part number, with no record of how many were forged, heat-treated or machined.
WIP valued at one rate
Lacking a stage, WIP was valued at a single average rate. Early-stage stock was overvalued and near-finished stock undervalued.
Stage judged after the fact
Stage was pieced together from production records days later, not from what auditors actually saw on the floor.
ERP vs floor mismatch
The ERP's stage-wise WIP rarely matched reality, and there was no physical evidence to correct it.
Reports built by hand
Finance rebuilt stage-wise stock in Excel from count sheets and routing data, taking days at every month-end and year-end.
Audit queries on WIP
Statutory auditors questioned WIP valuation, and the team had no stage-level count to support the figures.
How Inveck solved it
Inveck added a Stage input to the count screen. When an auditor finds a part on the floor, they record the quantity and select the stage it has reached — cut, forged, heat-treated, machined and so on. A part found at three stages gets three entries. Each stage carries its own rate, so the counted stock is valued at the stage where it was physically identified.
The client's routing was mapped into a fixed list of stages, and a stage-wise rate per part number was agreed with finance. Book stock was uploaded as a milestone, and the Stage field was configured on the count screen so auditors pick from the list rather than typing. Auditors download the milestone and count offline across the shop floor, syncing when back online. After sign-off, the stage-wise columnar report is generated for valuation.
Stage capture at count
Auditors select the stage for each count, based on what they see on the floor.
One entry per stage
The same part at several stages is recorded as separate entries, never merged.
Stage-wise valuation
Each entry is valued at the rate for its stage, not a single average WIP rate.
Columnar stage report
Stock per part number is laid out with one column per stage, plus totals and value.
Multi-location counts
Parts across bins, bays and machine areas are captured per location.
Offline counting
Milestone data stays on the device for forge shops and bays with poor network.
Live progress and pending review
Completion %, updated vs pending lines and a Review Pending list ensure no part is skipped.
Excess / Shortage review
Variances against book stock are shown per part before closure.
Digital sign-off and audit trail
Every entry carries user and timestamp; the shop Incharge signs on the device.
How Stage-Wise Valuation Works
The stage the auditor selects decides the rate applied, so value follows the part's real progress through the shop.
Stage-wise valuation · 6 stages, one example entry
Stage names and rates shown are illustrative; the client's own routing and stage-wise rates are configured at setup.
The Stage-Wise Columnar Report
After the count, inventory is reported with one column per stage, so finance sees at a glance where every piece sits and what it is worth.
Illustrative layout with sample figures.
| Part No. | Description | Cut blanks (pcs) | Forged (pcs) | Heat treated (pcs) | Machined (pcs) | Finished (pcs) | Total (pcs) | Value (₹) |
|---|---|---|---|---|---|---|---|---|
| FG-1001 | Crankshaft | 400 | 650 | 300 | 450 | 200 | 2,000 | 61,20,000 |
| FG-1002 | Connecting rod | 1,200 | 800 | 0 | 600 | 900 | 3,500 | 22,01,000 |
| FG-1003 | Flange | 0 | 250 | 400 | 150 | 300 | 1,100 | 9,65,000 |
| Total | 1,600 | 1,700 | 700 | 1,200 | 1,400 | 6,600 | 92,86,000 |
Value for each part = Σ (pieces at each stage × that stage's rate).
The results
WIP is now valued on evidence from the floor rather than an average, and the stage-wise picture is ready the day the count closes.
Accurate WIP valuation
Each piece is valued at the stage it actually reached, removing the over- and under-valuation of a single average rate.
Stage captured at source
Stage is recorded by the person who saw the part, at the moment of counting, not reconstructed later.
One columnar view of all stock
Raw material, every WIP stage and finished goods sit side by side per part number, with totals and value.
ERP stage data corrected
Stage-wise physical counts expose mismatches in ERP WIP so they can be adjusted with evidence.
Reports in hours, not days
The columnar report replaces manual Excel work at month-end and year-end.
Stronger audit support
Auditors see stage-wise counts, who recorded them and when, alongside the Incharge sign-off.
Better production insight
Seeing where stock piles up — for example, waiting at heat treatment — helps planners clear bottlenecks.
Valuing WIP used to mean taking a count and applying an average rate, and every audit we had to defend it. With Inveck, our team records the stage of each part on the floor itself. The stage-wise report gives finance a clear column for every stage, and our WIP valuation now stands on what was physically seen.
More case studies
Stop Averaging WIP. Start Valuing It Stage by Stage.
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