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Stores in English

Stores in English

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    Stores english Stores english Presentation Transcript

    • The Essentials - Stores HASH MANAGEMENT SERVICES LLP CHENNAI PH: 91766 13965
    • Overview ‘The Essentials’ series from Business Sense is an initiative to empower the students(freshers) and professionals in performing more efficiently and effectively in the organization This document is a part of the “Certified Manufacturing Professional” course offered by Business Sense This course 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 students and professionals who are joining manufacturing organizations For more details, please visit www.businessense.in At Business Sense, we help clients through consulting engagements focusing on improving their Operations through Lean Manufacturing Implementation covering 5S, SMED, Kaizen and other tools. We also serve clients on Preparation of Detailed Project Reports, Market Assessments, and Supply Chain Re-engineering. You can subscribe to our bi-weekly newsletter here. Follow us:Copyright of Hash Management Services LLP www.businessense.in
    • 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 PointsCopyright of Hash Management Services LLP www.businessense.in
    • Introduction to Stores Function 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. Stores 1 2 3 to From production suppliers Receipt Issues Holding / usersCopyright of Hash Management Services LLP www.businessense.in
    • Organization Structure This is a standard organization structure for Stores Function Stores Manager reports to the CEO of the CEO company There would be a few Stores Executives / Assistants reporting to the Stores Stores Manager Manager Each Stores executive would typically focus on a single raw material category Stores Stores Stores Executive / Executive / Executive / Assistant Assistant Assistant  We have explained a typical functional hierarchy. It may vary according to each organizationCopyright of Hash Management Services LLP www.businessense.in
    • Responsibilities of an Engineer in the Stores Function 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 First-In-First-Out (FIFO) – Material Issues Regular coordination with the Purchase and Production teams to ensure the material availability and issues. Ensuring that the stores is tidy, organized Search-free, bend-free, count-free & climb-freeCopyright of Hash Management Services LLP www.businessense.in
    • 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 monthCopyright of Hash Management Services LLP www.businessense.in
    • 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.Copyright of Hash Management Services LLP www.businessense.in
    • 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 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.Copyright of Hash Management Services LLP www.businessense.in
    • 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 supplies/ Quality issues / changes from the above mentioned processes would be discussed with the Stores manager/ Senior Management and necessary actions would be taken.Copyright of Hash Management Services LLP www.businessense.in
    • How Stores co-ordinate with other functions? Stores - Process Bill Accounting Passing Invoice & GRN Issues Net Material Issue Requirement Requisition Slip Purchase Indent Purchase Stores Executive Assistant Production Supervisors Materials Receipts Invoice, Warehouse Delivery Challan Perpetual Stock Verifications ShipmentsCopyright of Hash Management Services LLP www.businessense.in
    • 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 PointsCopyright of Hash Management Services LLP www.businessense.in
    • 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 Items Value 20% 80% 80% 20%Copyright of Hash Management Services LLP www.businessense.in
    • ABC Classification In any organization, the raw materials form about 60~65% of the Cost of Goods Sold (COGS). COGS: All Raw Materials – 60~65% Labor Cost – 7~8% Power & utiities – 8~10% . . . _______________________ Total – 100%Copyright of Hash Management Services LLP www.businessense.in
    • 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 A Category B Category More Items = Low consumption in value C Category Methodology of analyzing ABC items, and Lead time are explained in the “Certified Manufacturing Professional” course. To access login to www.businessense.inCopyright of Hash Management Services LLP www.businessense.in
    • 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 PointsCopyright of Hash Management Services LLP www.businessense.in
    • Ordering Techniques Category Characteristics Ordering Techniques Reason For items whose Scheduled Shipments / Standard consumption is regular Order Quantity (SOQ) through-out the season Very High Value. Need to A monitor continuously For items whose Re-Order level consumption do not follow a pattern Moderate Value – Moderate Order based on the Re-Order B Impact on the Inventory Re-Order level level Holding Low Value – No major impact Do not focus more on the C C on the Inventory Holding MinMax / Two Bin System Category items Cost Methodology of calculating ROL, Scheduled Shipments, MinMax quantities are explained in the “Certified Manufacturing Professional” course. To access login to www.businessense.inCopyright of Hash Management Services LLP www.businessense.in
    • 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 PointsCopyright of Hash Management Services LLP www.businessense.in
    • 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 decisionCopyright of Hash Management Services LLP www.businessense.in
    • Ensuring First-In-First-Out (FIFO) 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 Items for at the rear issues taken from the front side – to ensure FIFOCopyright of Hash Management Services LLP www.businessense.in
    • Rack Numbering and Maintenance Each bin should be given a Rack Master List identification number A1, A2, S.no Rack No Items B1, B2 etc. Rack Design - Sample 1 A1 Nuts An excel sheet containing the A1 A2 A3 A4 2 A2 Bolts Bin identification number and – Nuts - Bolts -Screws - Washers 3 A3 Screws the items present in the bin B1 B2 B3 B4 4 A4 Washers – Rubber – Plastic should be maintained. materials - Threads - Nails items 5 B1 Rubber Matls By this way, dependence on a C1 C2 C3 C4 6 B2 Threads – Welding –Electrical person is reduced - Tools -Adhesives rods Items 7 B3 Nails 8 B4 Plastic items Any new person can look at 9 C1 Tools the item in the excel sheet, go 10 C2 Adhesives to the corresponding bin and 11 C3 Welding Rods pick the item. 12 C4 Electrical Any changes in the material Items storage bin should be updated in the excel sheet Detailed Storage techniques, MIS reports and templates are available in the “Certified Manufacturing Professional” course. To access login to www.businessense.inCopyright of Hash Management Services LLP www.businessense.in
    • End of Free Content Please visit our website www.businessense.in to access the full course – “Certified Manufacturing Professional” Our website also contains list of ready-to-use templates and report formats containing Charts and pivot tables. Templates and report formats are available for Purchase, Stores, Production, Quality, Maintenance and HR functions These templates come in excel /word and can be downloaded and used right away At Business Sense, we help clients through consulting engagements focusing on improving their Operations through Lean Manufacturing Implementation covering 5S, SMED, Kaizen and other tools. We also serve clients on Preparation of Detailed Project Reports, Market Assessments, and Supply Chain Re-engineering. You can subscribe to our bi-weekly newsletter here. Follow us:Copyright of Hash Management Services LLP www.businessense.in