Closing a production order: reconciling material received against pieces produced
In most garment factories an order is considered finished when the last carton leaves the gate. The team moves straight to the next style, the leftover fabric is pushed into a corner of the store, and nobody looks back. Three months later the accountant notices that fabric purchases do not match output, and nobody can say which order caused the gap.
An order is truly finished only when its material adds up: everything received has been either turned into good pieces, returned to the store, or recorded as a known loss. This reconciliation takes less than an hour per order when the data is recorded properly, and it is one of the most effective ways to stop material leaks.
Why reconciliation matters
- It reveals the true cost. Without it, the cost of an order is based on planned consumption, not on what was actually used. Our practical playbook for true per-piece costing shows how quickly the two drift apart.
- It catches leaks while they are fresh. A gap discovered the week the order closes can still be explained by the people involved. A gap discovered at year-end cannot.
- It improves the next quotation. Actual consumption from the last order is the best basis for the consumption you quote on the next one.
- It protects you with customers. When a customer supplies fabric (CMT orders), they will ask what happened to it. A clear reconciliation answers before the question becomes a dispute.
The reconciliation equation
The whole exercise rests on one balance:
Material received = material in good pieces + material in rejects + recorded losses + material returned to store + unexplained difference
Every term except the last should come from records, not estimates. The goal is to make the unexplained difference small and understood. A difference within 1–2% of material received is usually normal measurement noise. Anything larger deserves a conversation.
Step by step
- Collect intake. Total fabric and trims received for the order, from supplier deliveries or customer-supplied material.
- Collect issues and returns. Everything issued from the store to production for this order, minus everything returned. The result is net material consumed.
- Count output. Good pieces packed, plus rejects and seconds recorded at each stage.
- Calculate expected consumption. Pieces cut multiplied by the consumption per piece from the marker.
- Add recorded losses. Cutting waste beyond the marker, damaged rolls, roll ends and any other loss recorded with a reason.
- Compare. Net consumed minus expected consumption minus recorded losses gives the unexplained difference.
A worked example
A factory closes an order of 6,000 fleece hoodies with a marker consumption of 0.55 kg per piece.
| Line | Quantity |
|---|---|
| Fabric received | 3,500 kg |
| Fabric issued to cutting | 3,450 kg |
| Fabric returned to store | 90 kg |
| Net fabric consumed | 3,360 kg |
| Pieces cut | 6,000 |
| Expected consumption (6,000 × 0.55) | 3,300 kg |
| Recorded losses (damaged roll, end losses) | 25 kg |
| Unexplained difference | 35 kg (about 1%) |
| Fabric still in store | 140 kg |
On the output side, 5,880 good pieces were packed and 70 rejects were recorded, leaving 50 pieces unaccounted for. The fabric difference is within tolerance, but 50 missing pieces is worth a walk through the floor: they may be sitting in a stage, used as samples without being recorded, or genuinely lost. Finally, the 140 kg still in store must be either reserved for a repeat order, returned to the customer or recorded as stock, not left as an anonymous pile.
Do not forget trims
Trims and accessories are reconciled the same way, piece by piece. Labels, zips, buttons and polybags are cheap individually but often run short at the worst moment or disappear in surprising quantities. If you ordered 6,300 zips for 6,000 hoodies, you should be able to say where all 6,300 went. Our guide on managing trims and accessories without running short covers allowances and controls.
Common reasons the numbers do not add up
- Material issued without an order reference, so it is counted against the wrong order.
- Leftovers returned physically but never recorded as a return.
- Cutting waste far above the marker plan. See reducing fabric waste with better marker efficiency.
- Pieces borrowed between orders without a recorded movement.
- Rejects thrown away instead of being counted.
Each of these has the same cure: every movement of material and pieces is recorded at the moment it happens, against the right order.
How Nasij reconciles orders
Nasij records material intake, issue, return and loss as separate movements against each purchase order, and tracks pieces through every production stage with live balances. When an order is marked complete, Nasij reconciles material received against pieces produced automatically, so the unexplained difference is visible immediately instead of months later. Nasij's loss and cost reports can be exported as Arabic PDFs, ready to share with management or with a customer who supplied the fabric, as described in our article on Arabic PDF reports for clients and auditors.
