stores / warehouse management module
DESCRIPTION
This presentation is aimed at helping small and medium businesses in their Stores / Warehouse Management. The module starts with an introduction to the function, Roles and Responsibilities of executives in the function, Key tools and methodologies, ABC Analysis, Storage Techniques, Visual Representation of best practices and various templates for MIS analysis. Please visit www.businessense.in to download this document.TRANSCRIPT
STORES MODULE
An initiative of Hash Management Services LLP
A Business Sense Publication
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Overview
‘The Essentials’ series from Business Sense is an initiative to empower the professionals and students in performing more
efficiently and effectively in the organization
This publication is aimed at bridging the gap between the institutions and the industry by providing the fundamentals of
manufacturing management which are not offered by any of our institutions/curriculum
This course would immensely benefit professionals and students who are joining manufacturing organizations
At Business Sense, we help medium scale manufacturing units improve their operational efficiency through consulting
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Kaizen and other tools
We promise to double the productivity in less than 33 days of our effort
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and provide them analytics and enable them better decision making. Useful if your organization do not have an ERP
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Contents
Section 1 – Introduction and Basic Processes
Section 2* – Materials Classification Techniques
Section 3* – Ordering Techniques
Section 4 – Storage techniques
Section 5 – MIS Reports and Analyses Points
Section 6 – Templates * - common to Purchase module
Property of Hash Management Services LLP. Unauthorized copying, circulating, modifying and using it without the knowledge / approval of Hash Management Services LLP is prohibited.
Section 1 : Introduction
A professionally managed Store has a process and a space within, to receive the incoming
materials (Receiving Bay), keep them for as long as they are not required for use (Custody)
and then to move them out of stores for use (Issue)
The objective is to efficiently and economically provide the right materials at the time when it
is required and in the condition in which it is required.
Receipt Issues
3 2 1
Stores
Holding
From
suppliers
to
production
/ users
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Organization Structure*
CEO
Stores Manager
Stores Executive / Assistant
Stores Executive / Assistant
Stores Executive / Assistant
This is a standard organization structure for Stores Function
Stores Manager reports to the CEO of the company
There would be a few Stores Executives / Assistants reporting to the Stores Manager
Each Stores executive would typically focus on a single raw material category
* - We have explained a typical functional hierarchy. It may vary according to each organization
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Responsibilities of a Stores Manager
Ensure that the materials are stored without any impact on the quality, physical and chemical composition that the materials
are intended for use in the subsequent functions.
Ensure that the data/information and regular audits regarding the materials stock positions and locations are updated daily
and correctly.
ABC Classification of Items ( along with Purchase function )
Regular stock analysis and salvaging the non-moving items.
Regular coordination with the Purchase and Production teams to ensure the material availability and issues.
Ensuring that the stores is tidy, organized and search free.
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Responsibilities of a Store Executive
Proper documentation and storage of materials including receiving, identifying space, labeling, issuing and stock keeping
Proper Indenting of the net requirement based on the Production Plan
Updation of the bin-cards / system stock positions/ledgers
Perpetual stock keeping – daily stock verification for 5 items
First-In-First-Out (FIFO) – Material Issues
Focus on A and B category items. MinMax model/Two bin system for C category items
To make the stores Search-free, bend-free, count-free & climb-free
Key Activities of Stores Function
Analysis of A, B and C Category Items
Helps in identifying the key materials and maintain their stock
Helps in reducing the overall Inventory carrying cost
Reduces the complexity and enhance the ease of operations in the purchase function
20%
80%
80%
20%
Items Value
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Key Activities of Stores Function
Lead time verification for all A & B category items at regular intervals (every 6 months)
Pull out the details of last 5 transaction for the items
Analyze the PO date vs. GRN date – note the lead time for the 5 transactions
Average of this gives the lead time and the standard deviation gives the Safety Stock days
S.No PO date GRN date Difference (days)
1 5 Dec 28 Dec 23
2 19 Dec 30 Dec 11
3 25 Dec 8 Jan 13
4 1 Jan 12 Jan 11
5 6 Jan 26 Jan 20
Lead time = average (23,11,13,11,20) = 15.6 days We can round it to 16 days Similarly Standard Deviation (Use STDEV function in MS Excel) of all 5 values would give us the Safety stock days = 5.5 days. We can round it to 6 days The item would take 16 days to reach the factory from the day of PO. The company needs to maintain 6 days of stock as safety stock for this item to account for any uncertainties on delivery
Property of Hash Management Services LLP. Unauthorized copying, circulating, modifying and using it without the knowledge / approval of Hash Management Services LLP is prohibited.
Property of Hash Management Services LLP. Unauthorized copying, circulating, modifying and using it without the knowledge / approval of Hash Management Services LLP is prohibited.
Key Activities of Stores Function
Issues and Receipts entries done on the same day
Make sure that Physical Stock and Book Stock are the same
Store all the heavy items in the bottom racks
Regular, Fast Moving items at the middle racks ( avoid climbing, bending)
Slow Moving and Non-moving items at the top racks
Rack Numberings along with the items stored inside list to be updated every 2 weeks
Monthly Closing Stock report to be submitted to the senior management every month
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Stores Function – A Snapshot
Stores
Assistant
Warehouse
Material Issue
Requisition Slip
Production
Supervisors Materials
Accounting
Invoice & GRN
Perpetual Stock
Verifications
Purchase
Executive
Purchase
Indent
Stores - Process
Shipments
Invoice,
Delivery Challan
Issues
Receipts
Net
Requirement
Bill
Passing
Any part supplies/ Quality issues / changes from the above mentioned processes would be discussed with the Stores manager/ Senior Management and necessary actions would be taken.
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Stores Process Flow - Receipts
Stores executive receives materials along with the invoice and Delivery Challan (DC)
After checking the quality& Quantity of the received materials against the PO, the Goods Receipt Note (GRN) is created by the Stores Executive
Invoice is sent to the Bill Passing / Accounts function for payments to the supplier
If the quality / Quantity of the incoming materials are not according to the PO, Purchase and other relevant functions are informed and necessary actions are taken
Action ranges from sending back the materials to the suppliers in case of major quality issues to adjustments in the payment schedules to the suppliers
Any part supplies/ Quality issues / changes from the above mentioned processes would be discussed with the Stores manager/ Senior Management and necessary actions
would be taken.
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Stores Process Flow – Holding / Custody
Once received, the materials are stored in the allotted space
The Stock position is updated in the bin card, system stock /ledger on the same day
Stock count: every month the closing stock report is prepared and sent to the Stores Manager and the Senior Management of the company
Every day the stores executives count and verify the stock of at least 5 A& B class items. Any discrepancy in the physical stock, system stock/ledger and bin card should be reported to the Stores Manager
Any discrepancy in stock/ Quality issues / changes from the above mentioned processes would be discussed with the Stores manager/ Senior Management and
necessary actions would be taken.
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Stores Process Flow – Issues to Production
Whenever the materials are required for the production function, a Material Issue Requisition (MIR) is created by the production supervisor and sent to the Stores Executive
Against the MIR, Stores Executive issues the required quantity for the materials and immediately updates the Bin card and system stock/ledger
In case of a new customer order, the stores executive would create the Net requirement for the order based on the Bill of Materials (BOM), Stock available in the stores corresponding to that order, Pending POs, and the delivery schedule
Indenting: The stores executive would raise a Purchase Indent (PI) to the purchase Executive during a new customer order / the existing materials in the stores reaches the ordering points
Any part issues/ Quality issues / changes from the above mentioned processes would be discussed with the Stores manager/ Senior Management and necessary actions would be taken.
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Contents
Section 1 – Introduction and Basic Processes
Section 2* – Materials Classification Techniques
Section 3* – Ordering Techniques
Section 4 – Storage techniques
Section 5 – MIS Reports and Analyses Points
Section 6 – Templates * - common to Purchase module
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Methodologies – ABC Classification
Pareto Analysis / 80-20 rule
20% of the items would constitute 80% of the value
Few other examples:
20% of the causes results in 80% of the defects
20% of the population controls 80% of the wealth
20%
80%
80%
20%
Items Value
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Methodologies – ABC Classification
COGS: All Raw Materials – 60~65%
Labor Cost – 7~8%
Power & utilities – 8~10%
.
.
.
_______________________
Total – 100%
In any organization, the raw materials form about 60~65% of the Cost of Goods Sold (COGS).
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Methodologies – ABC Classification
While analyzing the raw materials it would be clear that the top 20% of the items would constitute about 80% of the purchase value. Next 30~40% items would constitute about 15% of the purchase value. Remaining 50% of the items constitute 5% of the purchase value.
Few Items = More consumption in value
More Items = Low consumption in value
A Category
B Category
C Category
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Methodologies – ABC Classification
For e.g., Consider an organization where the total purchase value is about 2 Crores per month and there are about 300 different items.
In this case, typically, about 60 items would be in the A category
About 90 items in the B category and the rest in C Category
S.No Classification % of Items No of Items Purchase
Value in %
Purchase
Value (Rs)
1 A 20% 60 80% 1.6 Cr
2 B Next 30%. i.e.
Up to 50%
90 15% 0.3Cr
3 C Remaining
50%
150 5% 0.1Cr
4 Total 100% 300 100% 2 Cr
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Methodologies – ABC Classification
This analysis has to be done season-wise separately. ( peak season / moderate season and lean season of the year)
Consumption of the raw materials would follow the same trend as production/sales
Peak Season Moderate
Season
Moderate
Season
Lean
Season
Lean
Season
Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec
Sales
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Methodologies – ABC Classification
Let us assume that the company has two major seasons. A peak season where the demand is high (October to March) and a moderate/low season (April to September). This ABC analysis has to be done every season (though there may not be major changes in the items in each category). For the season starting October, the data of the previous year (month-wise consumption data for all items) is used.
Price in
Rs. October November December January February March
1 X6 Kgs 961 455 1080 1278 1002 650 1057 920.3 884440.3 25.5% 25.5% A
2 X9 Kgs 867 1265 1200 1231 1198 1258 1272 1237.3 1072768.0 30.9% 56.4% A
3 X5 Kgs 654 1331 651 1470 971 896 1382 1116.8 730409.0 21.0% 77.4% A
4 X7 Kgs 153 629 1330 290 1045 1316 690 883.3 135150.0 3.9% 81.3% A
5 X4 Kgs 980 111 126 118 107 128 110 116.7 114333.3 3.3% 84.6% B
6 X8 Kgs 76 1038 170 1338 66 1498 1055 860.8 65423.3 1.9% 86.5% B
7 X1 Kgs 454 107 135 100 134 131 146 125.5 56977.0 1.6% 88.2% B
8 X15 Kgs 728 97 63 71 62 72 87 75.3 54842.7 1.6% 89.7% B
9 X14 Kgs 928 54 65 57 50 53 62 56.8 52741.3 1.5% 91.3% B
10 X13 Kgs 787 42 43 46 84 81 97 65.5 51548.5 1.5% 92.7% B
11 X2 Kgs 382 117 132 115 115 124 150 125.5 47941.0 1.4% 94.1% B
12 X10 Kgs 645 55 63 91 89 55 78 71.8 46332.5 1.3% 95.5% B
13 X16 Kgs 607 94 41 86 71 58 84 72.3 43906.3 1.3% 96.7% C
14 X18 Kgs 820 22 59 75 34 35 57 47.0 38540.0 1.1% 97.8% C
15 X3 Kgs 270 110 108 138 118 120 134 121.3 32760.0 0.9% 98.8% C
16 X12 Kgs 412 52 69 80 86 72 49 68.0 28016.0 0.8% 99.6% C
17 X17 Kgs 208 66 24 39 56 62 61 51.3 10677.3 0.3% 99.9% C
18 X11 Kgs 53 40 84 96 86 69 43 69.7 3692.3 0.1% 100.0% C
Total 3470499
Unit of
Measurment
Item
NameS.No
Sample done wth 18 items
Monthly Consumption in Kgs
Category
Cumulative
%
%
consumption
Avg
consumption
value in Rs.
Average in
Kgs
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Methodologies – ABC Classification
The top 4 items constituting about 80% of the average purchase value are in the A category. The next 8 items constitute 15% of the value, which are in the B Category. The remaining 6 items constitute 5% of the purchase value and they are in the C category.
Category No of Items Cumulative %
A 4 81.3
B 8 95.5
C 6 100
Focus more on A category items.
These are important and high
value items whose inventory
should be managed properly.
Overstocking may lock-up more
money leading to higher holding
cost and would have impact on the
working capital. Stock-out may
force production stoppages.
Property of Hash Management Services LLP. Unauthorized copying, circulating, modifying and using it without the knowledge / approval of Hash Management Services LLP is prohibited.
Contents
Section 1 – Introduction and Basic Processes
Section 2* – Materials Classification Techniques
Section 3* – Ordering Techniques
Section 4 – Storage techniques
Section 5 – MIS Reports and Analyses Points
Section 6 – Templates * - common to Purchase module
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Ordering Techniques
Category Characteristics Ordering Techniques Reason
A Very High Value. Need to
monitor continuously
Scheduled Shipments / Standard
Order Quantity (SOQ)
For items whose consumption
is regular through-out
the season
Re-Order level For items whose consumption
do not follow a pattern
B
Moderate Value – Moderate
Impact on the Inventory
Holding
Re-Order level Order based on the Re-
Order level
C
Low Value – No major
impact on the Inventory
Holding Cost
MinMax / Two Bin System Do not focus more on the C
Category items
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Ordering Techniques – Scheduled Shipments / Standard Order Quantity (SOQ)
Few items in the A category whose consumption does not vary across months can be ordered with a single purchase order asking the supplier to deliver the items as per the schedule the company gives the supplier.
For e.g.. Please refer to the Item X9 in the table. The consumption of this item does not vary across months (only slight variations). Average consumption of this item is around 1200 kgs per month. This item can be ordered with a single PO to the supplier for the entire season. Every week the company requires 300Kgs ( 4 X 300 = 1200). The supplier can send the items every week (300kgs). Payments can be made to the supplier month-wise.
Quantity in Kgs Week 1 Week 2 Week 3 Week 4
October 300 300 300 300
November 300 300 300 300
December 300 300 300 300
January 300 300 300 300
February 300 300 300 300
March 300 300 300 300
So in the PO the following details can be mentioned:
Total order quantity = 1200 per month for 6 months
Delivery : 300kgs per week
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Ordering Techniques – Re-Order Level (ROL)
This method can be followed for most of the A and B category items. Leadtime of all these items should be known with a fair degree of accuracy. Safety stock (SS) to be determined ( 25% of the leadtime X daily consumption- can be taken initially)
Averge Monthly consumption in kgs - A 900
Per day consumption in kgs - B=A/25 36
Lead time in days - C 10
Leadtime Quantity in kgs - D=C*B 360
Safety Stock in days - E=C*25% 2.5
Safety Stock Quantity in kgs - F=E*B 90
Re-Order Level in kgs - G=D+F 450
Re-Order Quantity - D 360
Material Arrival
Material Arrival
Material Arrival
Safety Stock – 90 kgs
Lead
tim
e co
nsu
mp
tio
n-3
60 k
gs Average Stock holding
Re-Order Point
Day 1 Day 10
For.eg. consider an item X7 in the table mentioned
above.
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Ordering Techniques – Re-Order Level (ROL) explained …
At the Day 1, the company has 360+90=450 kgs of stock. Purchase Order for 360 kgs should be placed now. At the end of 10th day, the stock remaining will be 90Kgs. On that day, 360kgs arrive from the supplier against the purchase order. In case of 1~2 days delays, the safety stock would be consumed. This would be adjusted in the subsequent purchase orders.
Sometimes, the Re-order quantity can be set as twice the lead time consumption (720kgs, in this case). In that case the next PO can be raised after 10 days. (at the point when the stock in hand reaches 360+90(SS) ). So,
Re-Order Level/Point = 360+90 = 450 kg ; Order quantity = 360~720 kgs. Every time the stock reaches 450 kgs, Purchase to be done for 360 or 720 kgs.
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Ordering Techniques – MinMax System
This system is similar to the Re-Order level system except that it follows simple calculations
A minimum level is set for each of the items covering the lead time of the item and the safety stock.
A maximum level is set which is 3 times~4 times the lead time consumption.
FULL300kgs
FULL300kgs
EMPTY0 kg
FULL300kgs
FULL300kgs
FULL300kgs
Both the bins are full
Do not order. Wait till one bin becomes empty
One Bin is empty. Order 600 kgs. (By the time the materials arrive the second bin also nears empty level)
Both the bins are full
Do not order. Wait till one bin becomes empty
Stage 1
Stage 2
Stage 3Minimum level in kgs 300
Maximum level in Kgs 900
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Benefits of the various ordering systems
All the three methods of ordering the materials require close coordination with the Stores.
Effective use of these three methods would bring down the inventory by around 25~30% of the current levels (from our past experience in various firms across industries)
Before
Implementation
After
Implementation
25~30%
reduction in
inventory
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Property of Hash Management Services LLP. Unauthorized copying, circulating, modifying and using it without the knowledge / approval of Hash Management Services LLP is prohibited.
Contents
Section 1 – Introduction and Basic Processes
Section 2* – Materials Classification Techniques
Section 3* – Ordering Techniques
Section 4 – Storage techniques
Section 5 – MIS Reports and Analyses Points
Section 6 – Templates * - common to Purchase module
Property of Hash Management Services LLP. Unauthorized copying, circulating, modifying and using it without the knowledge / approval of Hash Management Services LLP is prohibited.
Property of Hash Management Services LLP. Unauthorized copying, circulating, modifying and using it without the knowledge / approval of Hash Management Services LLP is prohibited.
Objectives of the Store
Effective use of the space available
Protection (of the materials & the personnel)
Efficiency – how quickly can a material be delivered to the user departments
Productivity Improvement (Quick retrieval of the materials, volumes handled)
Mechanization – depending on the volume handled / senior management’s decision
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Storage Techniques All the materials are stored inside the stores in
proper racks / bins. The bins should be labeled properly for easy identification.
The racks can be placed in a slight inclination so that First-in-First-Out is followed.
Recent Items placed at the rear
Items for issues taken from the front side –to ensure FIFO
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Rack Design - Sample
A1 – Nuts
A2 - Bolts
A3 -Screws
A4 - Washers
B1 – Rubber materials
B2 - Threads
B3- Nails
B4– Plastic
items
C1 - Tools
C2 -Adhesives
C3 – Welding
rods
C4 –Electrical
Items
S.no Rack No Items
1 A1 Nuts
2 A2 Bolts
3 A3 Screws
4 A4 Washers
5 B1 Rubber Matls
6 B2 Threads
7 B3 Nails
8 B4 Plastic items
9 C1 Tools
10 C2 Adhesives
11 C3 Welding Rods
12 C4 ElectricalItems
Rack Master List
Storage Techniques
Each bin should be given a identification number A1, A2, B1, B2 etc.
An excel sheet containing the Bin identification number and the items present in the bin should be maintained.
By this way, dependence on a person is reduced
Any new person can look at the item in the excel sheet, go to the corresponding bin and pick the item.
Any changes in the material storage bin should be updated in the excel sheet.
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Storage Techniques
Following are the items that can be
stored in adjacent racks
Different Product of the same
type
Product which are issued as sets
(paint & paint brush)
Products with similar weight &
dimensions
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Stores Layout
Each different value stream within the warehouse will use dedicated space and assets
Each value stream will have a dedicated flow
The result will be better customer service, faster response and less waiting
Value stream X
Value stream Y
Value stream Z
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Stores Layout
Warehouse layout must be designed in order to separate inbound and outbound flows
This means providing physically different spaces and aisles for replenishment and for picking or operating inbound and outbound at different times
The result will be increased productivity, reduced stock loss and reduced accidents
Inbound / replenishment flow
Outbound / picking flow
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Stores Layout
The warehouse layout must ensure there is no wasted transport or movement Long journeys
Empty returns
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Storage of Materials
Bin cards should be placed in each bin to indicate the quantity present in the racks.
Items which are frequently used/fast moving should be kept in such a way that the stores executive does not bend/climb the racks to take the items.
Items which are not used frequently/slow/rarely moving items can be kept at the top of the racks. Heavy items should be kept at the bottom racks.
Bin Card - Template
Item code: Item Name
Unit of Measurement Rack No
Supplier Code Re-Order Level / Min Max Level:
Supplier Name Lead time
City of the Supplier Safety stock
Date Issues (subtract) Receipts (add) Available Qty
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Designing the stores
Following are the points that should be noted while designing the stores:
Single floor facilities are better (wherever possible)
Move goods in a straight-line (avoid zigzag/overlapping gangways)
Use the most efficient materials handling equipment
Optimize aisle space
Use full building height – design racks based on the height of the materials stored/to be stored in each rack ( optimal air gap between the materials and the inner edge of the rack)
Large air gap
– wastage of
space
Minimal air gap
Air-Free racks
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Count-Free racks
Based on the size of the materials, paste numbers zero to the storage quantity at the bottom surface of the rack
In this case the storage space is designed for 20 items. So numbers are pasted from 0 to 19
Immediately by looking at the number next to the material we can identify there are 14 materials left in the rack : count-free
If the next material is issued, number 13 will become visible. So we can say without counting that there are 13 items remaining
0 1 2 3 4
5 6 7 8 9
10 11 12 13 14
15 16 17 18 19
14 items in the
rack
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Stock Maintenance – Perpetual Stock Counting
Stores personnel should maintain that the physical stock and the book stock should be equal all the time
Every day at least 5 ‘A’-category items should be counted and verified for stock discrepancy – this is called Perpetual Stock Counting
By this method the stock position of all the key items would be monitored regularly
In case of any discrepancy, Stores Manager should be informed immediately
S.no Item
Code
Item description Category Inspection
Date
Book Stock Physical
Stock
Difference Remarks Next
Inspection
Date
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Contents
Section 1 – Introduction and Basic Processes
Section 2* – Materials Classification Techniques
Section 3* – Ordering Techniques
Section 4 – Storage techniques
Section 5 – MIS Reports and Analyses Points
Section 6 – Templates * - common to Purchase module
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MIS Reports & Analyses
Type Key Parameters Report Name Nature of Report Frequency Prepared by
Absolute Reports Monthly Issues, Receipts and
Closing Stock Monthly Stock report
Category-wise / Item-wise
- descending in value
terms Monthly Stores Executive
Non-Moving Stock value Non-Moving Stock Report Item-wise / Category-wise Every 3 months Stores Executive
Variance Reports Stock Discrepancy value Stock Discrepancy Report Item-wise / Category-wise Monthly Stores Executive
Quality issues in the incoming
materials Incoming Quality Report*
Item-wise / trend chart
comparing the last 3
months Monthly
Purchase Executive +
Stores Executive
The list below explains the various parameters to track, the reports to generate, the frequency and the person-in-charge in the Purchase function:
* - to be jointly done with Purchase Function
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Analysis/questions to ask from the reports…
Type Key Parameters Report Name Frequency Questions to ask
Absolute Reports
Monthly Issues,
Receipts and
Closing Stock
Monthly Stock
report Monthly
What is the category-wise consumption, receipts and closing stock. Is the closing stock of A&B
class items more than 30 days of consumption? How to bring the closing stock value down ? Can
we convert any major item into batches of small quantity instead of ordering one time?
Non-Moving Stock
value
Non-Moving
Stock Report Every 3 months
What are the major non-moving items ? Why they have not issued in the last 3 months? How to
use / salvage them ?
Variance Reports
Stock Discrepancy
value
Stock
Discrepancy
Report Monthly
What is the value of the stock discrepancy ? In that what is the value of A & B category items ? Is
there is downward trend observed in the stock discrepancy value? If not, why? What are the
corrective actions taken to avoid discrepancy in the future?
Quality issues in
the incoming
materials
Incoming
Quality Report* Monthly
What is the pareto of the quality issues in the incoming materials ? What is the trend ? Is it for
the same item / from same supplier? What is the time taken by the supplier to rectify/send new
materials ? How to avoid this in the future ?
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Role of the Senior Management
All the above initiatives would work only if the senior management is committed to the change and continuously monitors the processes.
There would be a lot of resistance initially for this and would take 2~3 months for the initiatives to sustain.
Regular interactions with the personnel are the key and a systematic follow-up is vital for the initiatives to be successful.
Meetings with the respective personnel can be scheduled for a pre-determined date every month/week.
The minutes of the meetings (MOM) should be sent to the respective personnel for further action. MOM should be precise with the action plan, responsibility and the target date for completion.
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Contents
Section 1 – Introduction and Basic Processes
Section 2* – Materials Classification Techniques
Section 3* – Ordering Techniques
Section 4 – Storage techniques
Section 5 – MIS Reports and Analyses Points
Section 6 – Templates * - common to Purchase module
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Monthly Closing Stock Report
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S.No Item Code Item Description
Item
Categor
y
Price
(Rs) UOM Opening Stock Receipts Issues
Closing
Stock
Closing Stock
value
1 1009 Steel Rods A 500 tons 200 60 35 225
112,500
2 1003 Steel Wires A 500 tons 150 75 60 165
82,500
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Non-Moving Stock Report
Over a period of time, this list should be empty !!
S.No Item Code Item Description
Item
Category UoM
Quantity on
Hand
Purchase
Value
Purchased
on
Last Issue
date
Reasons for nil
usage
Action Plan
suggested by Senior
Management
1 1009 Steel Rods A tons 500
45,000 12-Jul-10 30-Dec-10
Production of that
model - stopped
Try to talk to the
suppliers and return
the materials
Property of Hash Management Services LLP. Unauthorized copying, circulating, modifying and using it without the knowledge / approval of Hash Management Services LLP is prohibited.
Stock Discrepancy Report
S.No Date Item Code Item Name
Item
Category
Book
Stock
Physical
Stock Difference
Reason for
Shortage/excess
Corrective Action
Taken
1 15-Jun-11 1009 Steel Rods A 247 258 11
Wrong entry after
counting
Counting machine
would be bought to
solve it
Over a period of time, this list should be empty !!
Property of Hash Management Services LLP. Unauthorized copying, circulating, modifying and using it without the knowledge / approval of Hash Management Services LLP is prohibited.
Incoming Quality Report*
S.No Item Code
Item
Description
Item
Category
Purchase
Order No PO date Quantity UoM
Supplier
Code
Supplier
Name
Quality
Problem
No of
Defective
items
Repeated
Issue Corrective Action
1 1008 Steel Rods A A2345 15-Jan 25.00 tons 1234
ABC
Metals cracks 25 yes
Sent back to
supplier. Future
dispatches only after
100% quality checks
* - to be jointly done with the Purchase Function
Reasons for quality issues must be sorted out with the suppliers. Items which frequently appears in the list should be examined and necessary action to be taken
STORES MODULE
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