Nomenclature required by a plastics factory where I worked

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© MyPowerStation 2000 - 2018
The Requirements for Stock Accuracy
By David Lipschitz 21st
October 2000
100% Stock Accuracy Requires:
1. 100% Store Stock Take 9. 100% Despatch
2. 100% WIP Stock Take 10. 100% Invoicing
3. 100% Delivery 11. 100% Client Returns & Cr Notes
4. 100% Issues (From Store to Factory) (-ve Despatch = Credit Return)
12. 100% Returns To Suppliers
5. 100% Production Packing/Palletising (-ve Delivery = Debit Return)
13. 100% Use of Nomenclature
6. 100% Receipts (From Factory to Store) 14. 100% Neatness (Housekeeping)
15. 100% Accuracy
7. 100% Intra-Transfers 16. 100% Scanning
8. 100% Inter-Transfers (no writing as an objective)
If Steps 2-16 are 100% accurate, then step 1 is not required, but perpetual stock taking will be done
to check for shrinkage or any other possible mistakes. Full stock takes will also be done from time
to time as required.
Objectives and Staff Requirements
The objectives of this document are to show areas where 100% accuracy must be achieved and to
show staff responsibilities and obligations in order to meet this accuracy. The 16 processes above
must be made to be 100% accurate. In order to do this we need to set up generic rules, process
rules and process procedures.
Generic Rules are those rules that are applicable to everyone in the organisation, whether they
work on computers or not and whether they have a direct influence on the information systems or
not.
Process Rules are rules that apply to a particular process and which cannot be broken without the
employee’s immediate supervisor’s OK. If a rule needs to be broken to continue operations, then
this must be documented and the documents given to the stock team on a daily basis.
The written Process Procedures will document how the person does his job both in terms of job
requirement and in terms of data capture. Each process must be able to run first without the
computer and then with the computer.
All relevant staff must become familiar with Data Capture. All staff must understand that in order
to achieve the 100% stock accuracy objective, each and every one of them must be responsible for
his or her own area and if he or she sees a problem to firstly try and fix the problem in their own
department and if that is not possible to bring the problem to the stock team for resolution. If the
problem has something to do with computer accuracy, then the problem must be brought to the
stock team.
Part of the objective of the project is to Lock The System. This is part of the process of setting up
Rules for each process. For example, a lock might be “no negative stock”. A lock exists in the JDE
system and if it is broken, the stock team must be called in to see exactly what went wrong.
In order to stop the Fire-fighting (fixing existing problems) and never getting to solving the real
underlying causes of the problems, two things will be done: 1) the fire-fighting team will resolve
existing problems such as negative stocks, invalid orders, invalid picking, etc; 2) the factory and
warehouses will start working within the rules and system locks. By doing this, we will solve the
problems over the short term (3 months) as we won’t be adding new problems to an existing
problem workload.

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© MyPowerStation 2000 - 2018
1) Staff Requirements: Must be implemented once all staff have accepted these rules
• Everyone must learn the nomenclature found in the CLIENT Dictionary. The
nomenclature is designed in such a way that each process has a unique word or two words
to describe it. When we are discussing something, it will be assumed that the staff
understand the words that we are using. Likewise if there is a problem, the staff
concerned must be able to explain and isolate the problem using the nomenclature.
• All staff must know who makes decisions at each level.
• The rules will change the attitudes and enforce team building.
• This will create discipline automatically.
• Increase reliability.
• This will enforce 100% stock accuracy.
• It (the above) will increase communication between staff.
• It will decrease lead times to customers.
• It will force people to think about each others processes and tasks.
• It will identify nodes. A node is a point in the process between the sending and the
receiving movement.
• A node exists between two physical locations.
• It is the responsibility of the giver to check what he is giving and the receiver to check what
he is receiving and to resolve problems together in conjunction with their superiors.
• The scanner will force people to think about the nodes and also to ensure that every time
stock moves locations, it is accurately scanned. The factory itself will be considered as one
location.
2) Generic Rules:
• Understand the nomenclature.
• Cannot enter stock until the stock is received.
• Cannot send stock until the stock exists and has been captured.
• Must ensure that there is 100% integrity between what physically happens and what is
captured in the computer.
• Must rely on what the computer tells you (objective).
• Must be 100% accurate at and during all steps.
• Exercise discipline and responsibility at all times.
3) Scanner Rules: must be implemented as scanners are implemented throughout the factory. This
is currently in force in S2s.
• Must use scanner during stock movement.
4) Order Processing and Picking Rules
• Cannot pick stock until the stock exists and cannot pick stock before the despatch date
unless the stock is for exports or unless the stock is for a special production order and you
wish to pick it in advance for a client. Can’t pick stock if stock not in your warehouse.
• Cannot enter orders until orders received. We need to decide if a telephonic order is
acceptable.
5) Process Rules
• Must follow process procedure.
• If there is an error within process procedure you must ask your supervisor or manager or
report the problem to the stock team.