Order Completion Report - An Important MIS Report for Garment Exporters

Question: Please explain OCR report. …asked by B.K. Gupta

Order Completion Report, mostly known as OCR, is an MIS report that is made once an order is shipped to customer. Processing of an order is not complete until OCR is made and submitted to cost accounting department. Profit from an order after shipment of goods can be assessed only when OCR is made.

Generally Production planning department made this report. But management can give responsibility to any other department or a person. It does not matter who made the report. Important point is that correct and complete information must be collected from departments those involved in making the order. Report is complied together to analyse figures on following parameters..

The objective of this report is to measure

  1. How many pieces are shipped against order quantity? Primary target is to ship 100% of order quantity. But in case buyer agrees to accept extra quantity with same price, manufacturers try to ship extra pieces upto buyer’s acceptance limit. In case factory shipped less quantity that ordered, buyer may charge for penalty. 

  2. How many pieces are shipped against cut quantity? Garment manufacturing normally cut extra unit of garments than order quantity as there is chance of producing defective garment. Extra cutting means excess cost incurred in raw materials and manufacturing. 

  3. Whether shipment id sent on time or it is delayed? 

  4. How many garments are rejected and damaged? 

  5. Stock level of raw materials after shipment: Stock of fabrics and other raw material are measured. Planned average of fabric and trims consumption is compared with actual consumption used in the order. 

  6. Planned production cost Vs Actual production cost 

  7. How much Dollars factory has earned? 

Calculated figures the above parameters determine performance level of the company. Company sets its own benchmark or target level for each performance criteria. Figures tells how factory manages its inventory, quality of the product etc. On time delivery and full order quantity delivery is very good sign for good and long term relationship with buyers.

Based on the OCR data, departments those are responsible for mistakes or lowering the factory performance learn and try use correct in the following orders. For example, factory may end up with lot of fabric inventory after shipment due to wrong estimation consumption. This reports help employees to learn from their mistakes.

A sample table for Details of Cut to Ship Quantity of and has been shown below for your reference. For each of the above criteria data is collected in specific format.

Sample Format for Order Completion Report

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