Materials Management

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Materials Management

• Cycle Counting
• And
• Physical Inventory
• David McCusker, Senior Consultant
• CISTECH, Inc.
• David.mccusker_at_cistech.net

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Materials ManagementCycle Counting Physical
Inventory

• Objectives
• To incorporates the best capabilities from IM and
  MPAs Physical Inventory/Cycle Counting, then
  expand with Power Architecture technology
• Provide inventory tag support
• Provide bar code support
• Deliver customization capabilities to greatly
  enhance productivity

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Inventory Count Groups
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Materials ManagementCycle Counting Physical
Inventory
Report Options will allow user to tailor the
reports to their preference!
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Materials ManagementCycle Counting Physical
Inventory
Ease of Entry! User can either enter tags
sequentially by tag number or...
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Materials ManagementCycle Counting Physical
Inventory
Random Count Entry by Item OR by Tag Its the
users choice!
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Materials ManagementCycle Counting Physical
Inventory
Count items will list in a spreadsheet
format Columns may be moved, items can be
changed, created, locatedall from this
screen. Youll have a window of opportunities!
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Inventory Count Groups With Subsets

• Single Warehouse
• Cycle Count Class
• Range(s)
• item numbers within a Warehouse
• item classes
• stock locations

• Transaction Activity
• By Timed Interval
• Forced Count
• Negative On-Hand Balance
• Include
• Line Locations for REP
• Unapproved Locations for QC

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Inventory Count Groups

• Turnaround Documents
• Both Count Entry List and Inventory Tags
• Bar Coding is available without PMC being
  installed
• Two Inventory Lockdowns
• Entry On-Hand Quantity
• Captured at the time the actual count was entered
• Cutoff On-Hand Quantity
• Captured at the time the count was activated

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Inventory Count Groups

• Speed Data Entry
• Random Entry
• By Item
• By Tag
• By Barcode
• Sequential Entry
• Warehouse/Location/Item
• Warehouse/Item/Location
• Tag Number

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Inventory Count Groups

• Warehouse
• Highlight Warehouse
• File
• Host Jobs
• Physical Inventory

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Inventory Count Groups

• Inventory Count Entry List

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Inventory Count Groups

• Inventory Tags

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Inventory Count Groups
Counting can be entered either by Random or
Sequential Entry
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Inventory Count Groups

• Random count entry by tag
• Random count entry by bar-code
• Random count entry by item

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Inventory Count Groups
Sequential Entry is the fastest format but
requires the items being entered to be in order.
Notice the Bypass Key.
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Cycle Count Walk Thru
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Cycle Count Walk Thru
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Cycle Count Walk Thru
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Cycle Count Walk Thru
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Cycle Count Walk Thru
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Cycle Count Walk Thru
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Cycle Count Walk Thru
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Cycle Count Walk Thru
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Cycle Count Walk Thru
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Cycle Count Walk Thru
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Cycle Count Walk Thru
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Cycle Count Walk Thru
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Cycle Count Walk Thru
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Physical Inventory Walk Thru
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Physical Inventory Walk Thru
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Physical Inventory Walk Thru
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Physical Inventory Walk Thru
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Physical Inventory Walk Thru
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Physical Inventory Walk Thru
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Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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• COUNT GROUP- 39 INVENTORY COUNT
  COUNTED/UNCOUNTED REPORT DATE 9/11/06
  TIME 20.02.44 PAGE 1 AXTG660
• PHYSICAL INVENTORY WALK THRU BOTH
  COUNTED AND UNCOUNTED ITEMS OPER
  MCCUSKERD
• Physical Inventory Walk Thru
  COUNT 1
  
• 
  BATCH/
  -----------------COUNTED---------------
• WHSE ITEM NUMBER DESCRIPTION
  LOCATION LOT FIFO DATE TAG BY
  DATE QUANTITY U/M
• XWH XO6000101 COLORANT - NAVY BLUE
  
  6001 DMM 9/11/06
  2000.000 KG
• XWH XO6000102 COLORANT - HUNTER GREEN
  
  6002 DMM 9/11/06 3000.000
  KG
• XWH XO6000103 COLORANT - SILVER SPARKLE
  
  6003 DMM 9/11/06 40000.000
  KG
• XWH XO6000104 COLORANT - DEEP PURPLE
  
  6004 DMM 9/11/06
  100.000 KG
• XWH XO6000105 COLORANT - BRIGHT WHITE
  
  6005 DMM 9/11/06
  200.000 KG
• XWH X613 CHROME PLATED TAP
  PLATE
  6012 DMM 9/11/06
  400.000 EA
• XWH X614 1/4" SCREW
  
  6013 DMM
  9/11/06 500.000 EA
• XWH X615 1/2" SERRATED WASHER
  
  6014 DMM 9/11/06
  600.000 EA
• XWH X616 RUBBER BASE PAD
  
  6015 DMM
  9/11/06 700.000 EA
• XWH X620 BASE SUBASSEMBLY
  
  6016 DMM 9/11/06
  800.000 EA
• XWH X621 CHROME PLATED CARBON
  
  6017 DMM 9/11/06
  800.000 EA
• XWH X622 CHROME PLATED CARBON
  
  6018 DMM 9/11/06
  900.000 EA
• XWH X623 CHROME PLATED FASTNER
  PIN
  6019 DMM 9/11/06
  10.000 EA
• XWH X624 7 SPRING
  
  6020 DMM
  9/11/06 20.000 EA

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• COUNT GROUP- 39 INVENTORY
  COUNT VARIANCE REPORT DATE 9/11/06
  TIME 20.02.45 PAGE 1 AXTG670
• PHYSICAL INVENTORY WALK THRU
  COMPARE QUANTITY - CUTOFF OPER
  MCCUSKERD
• Physical Inventory Walk Thru
  
  
• 
  
  -------- VARIANCE --------
• WHSE ITEM NUMBER DESCRIPTION
  U/M COUNT
  COUNTED QTY COMPARE QTY
  QUANTITY AMOUNT OU
• LOCATION BATCH/LOT FIFO DATE TOLERANCE
  UNIT COST
  
• XWH XO6000101 COLORANT - NAVY
  BLUE KG 1
  2000.000
  2000.000
  21000.0000 Y
• 
  
  10.5000
  
• (W) Item exists in another count group.
  
  
• XWH XO6000102 COLORANT - HUNTER GREEN
  KG 1
  3000.000
  3000.000
  31500.0000 Y
• 
  10.5000
  
• (W) Item exists in another count group.
  
  
• XWH XO6000103 COLORANT - SILVER SPARKLE
  KG 1 40000.000
  40000.000 420000.0000 Y
• 
  10.5000
  
• (W) Item exists in another count group.
  
  
• XWH XO6000104 COLORANT - DEEP PURPLE
  KG 1 100.000
  100.000 1050.0000 Y
• 
  10.5000
  
• (W) Item exists in another count group.
  
  
• XWH XO6000105 COLORANT - BRIGHT WHITE
  KG 1 200.000
  200.000 2100.0000 Y

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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count/Physical Inventory Walk Thru
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Cycle Count Steps

• Select Items for Cycle Count
• Add/Delete Items To/from the Audit Control Group
• Create Cycle Count Inventory Count Group
• Generate and Print Inventory Tags
• Generate and Print Inventory Count Entry List
• Activate the Next Count Group
• Work with Inventory Count Groups
• Work with Inventory Count Items
• Random Count Entry
• Sequential Count Entry
• Generate and Print the Counted/Uncounted Items
  Report
• Generate and Print the Variance Report
• Post Count Adjustment

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Physical Inventory Steps

• Create Physical Inventory Count Group
• Generate and Print Inventory Tags
• Generate and Print Inventory Count Entry List
• Activate the Next Count Group Required
• Work with Inventory Count Groups
• Work with Inventory Count Items
• Random Count Entry
• Sequential Count Entry
• Generate and Print the Counted/Uncounted Items
  Report
• Generate and Print the Variance Report
• Post Count Adjustment

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Requirements for maintaining accurate records

• A good and well documented process for recording
  all receipts, issues, and dispositions that
  affect inventory unit balances
• A well thought out system of inventory locations
• Record activities which match physical activities
• Well defined responsibilities and
  accountabilities for accurate records

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Requirements for maintaining accurate records

• An effective system for maintaining high levels
  of training and understanding among all employees
• An effective audit program

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Cycle Counting involves

• Counting selected items frequently and testing
  their record accuracy
• Identifying causes of errors in the records
• Showing change in the quality of records as time
  goes on

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A Short Way to Get Started

• Get your team together and read the procedure
• Make whatever few changes to terminology that are
  absolutely necessary
• Select a group of 25 items
• Make assignments including counters, warehouse
  supervisor, inventory analyst, etc.
• Let management know what you are doing
• Schedule a count tomorrow
• Learn by doing
• Post the results!

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Physical Inventory

• Day 1
• Identify Count Personal (Counters/Checkers/Entry
  etc.)
• Create Physical Inventory Count Group
• Generate and Print Inventory Count Entry Lists
  /or Tags
• Training
• Day 2
• Activate Next Count
• Count Items (Random/Sequential Count Entry)
• Generate and Print Inventory Count Reports
• Post Count Adjustments

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Cycle Count Inventory

• Day 3
• Identify Count Personal (Counters/Checkers/Entry
  etc.)
• Select and Code Items for Cycle Counting
• Create Cycle Count Inventory Count Group
• Generate and Print Inventory Count Entry Lists
  /or Tags
• Training
• Day 4
• Activate Next Count
• Count Items
• Enter Counts (Random/Sequential Count Entry)
• Generate and Print Inventory Count Reports
• Post Count Adjustments

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THANK YOU