Audit engagement

Material usage & scrap variance review

Focused audit of usage and scrap variances — tracing BOM yields, drawing revisions, and scrap coding on the floor.

Format

On-site sampling + ledger tie-out

Duration

1–2 weeks

Location

Client plant in Hong Kong

Fee basis

Day-rate or fixed mini-scope

Who this is for

Costing teams watching material usage swing without a clear scrap story, or purchasing and production stuck in a blame loop over the same variance line.

What we do

We sample high-impact materials, compare theoretical BOM consumption to issues from stores, and walk scrap cages and rework stations to see how losses are coded. Drawing and BOM revision timing is checked against the period under review.

Included

  • Usage and scrap variance isolation for agreed material families
  • BOM-to-floor reconciliation on selected SKUs
  • Short findings memo with ranked causes and control suggestions

Excluded

Labour and overhead variance deep-dives (available as separate or combined engagements). Full inventory physical counts.

Next step

Ask about a material review and name the materials or product lines that dominate your variance report.

Commission this audit

Share your costing method, period, and plant layout. We propose a scoped fee within two business days.

Request this engagement