diff --git a/erpnext/manufacturing/doctype/work_order/work_order.py b/erpnext/manufacturing/doctype/work_order/work_order.py
index 84bfab2f1d9..8301f30d837 100644
--- a/erpnext/manufacturing/doctype/work_order/work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/work_order.py
@@ -421,6 +421,9 @@ class WorkOrder(Document):
 		return holidays[holiday_list]
 
 	def update_operation_status(self):
+		allowance_percentage = flt(frappe.db.get_single_value("Manufacturing Settings", "overproduction_percentage_for_work_order"))
+		max_allowed_qty_for_wo = flt(self.qty) + (allowance_percentage/100 * flt(self.qty))
+
 		for d in self.get("operations"):
 			if not d.completed_qty:
 				d.status = "Pending"
@@ -428,6 +431,8 @@ class WorkOrder(Document):
 				d.status = "Work in Progress"
 			elif flt(d.completed_qty) == flt(self.qty):
 				d.status = "Completed"
+			elif flt(d.completed_qty) <= max_allowed_qty_for_wo:
+				d.status = "Completed"
 			else:
 				frappe.throw(_("Completed Qty can not be greater than 'Qty to Manufacture'"))