1. FOR RFL ( Durable plastics limited)
S. M. Zabed
Assistance Manger
Store & Inventory

2.  Objective…??
 How to Manage The Materials in Manufacturing Industry.
 Standard Operating Procedure in DPL.
 How to maintain lead time.
 How to maintain Stock label.
 Why Create Non Moving.
 What's types of action taken for Non Moving.
 How to control dead items.

3.  What is materials Management.?
Option-1
 Inventory is a list of goods and materials, or those goods and materials
themselves, held available in stock by a business / organization. It can be
defined in this away that, “Inventory is the list of goods or raw materials for
the purpose of production availability in the manufacturing company shop.
In accounting inventory is considered as an asset.
Option-2
 Inventory is a quantity of stores/goods that is held for some purpose or use.
Meaning to take inventory or to count all goods held in inventory. Inventory
may be kept “In –house,” meaning on the premises or nearby for immediate
use: or it may be held in distant warehouse for future use. With the
exception of firms utilizing just-in-time methods more often than not, the
term “ inventory” implies a stored quantity of goods that exceeds what is
needed for the firm to function at the current time (within the next few
hours or days).

4. Materials Type..??
 Mainly we use three types of materials as bellow:
1. Raw Materials (RM)
2. Packaging Materials(PM)
3. Mechanical and Electrical parts (ME)

5. 1.Raw Materials (RM)..??
 Raw materials means which item directly involve to produce the product.
 We use various type of Raw materials as bellow.
 PP HP (Poly propylene Homo polymer)
 PP CP (Poly propylene Co-polymer)
 RCP (Random Co-polymer)
 HDPE (High Density poly ethylene)
 LDPE (Low density poly ethylene)
 PC (Poly Carbonate)
 MS (METHACRYLATE STYRENE RESIN)
 MB (Master batch)
 TPR
 GPPS
 HIPS
 ABS
 PP Filler
Etc….

6. 2.Packaging Materials(PM)..??
Option:1
 Packaging Materials is the technology of enclosing or protecting
products for distribution , storage , sale, and use packaging also refers to
the process of design, evaluation and production of packages.
Option:2
 The packaging materials can be a load carrier. The most important
packaging materials include creates, Boxes, containers wire baskets and
plates.
 We use various types of packaging Materials as bellow:
 Heat Seal Foil, Inmold Foil, Label ,Sticker ,Hologram ,manual, Tag etc.
 Carton & Inner Packet.
 Various type of poly (LDPE,PP,BOPP,POF) etc.

7. STORE ADMINISTARTION
The following departments are related to the store management:
1. Store at Factory – The end users of materials.
2. SCM – Material purchaser
3. Accounts – Inventory Record and Payment to suppliers
4. Top Management – Approval

8. Organogram of Store Management at factory.

9. Function of Store Management at Factory
 Purchase Requisition (PR)
 Purchase Order (PO),SCM
 Material Receiving Report (MRR)
 Issue of Materials (CO)
 Other Receive(OR)
 Other Issue (OI)
 Delivery request (DR)
 Transfer Out (TO)
 Transfer In (TI)
 Store Ledger
 Store Software (SCM)
 Reports

10. Others
 Scrap sale..
 Local Purchase..
 Sub-store maintain..
 Stock Level..
 Stationery Stores..

11. Store Uses format (Software/Manual)
SL No Particulars Software/Manual Form No.
1 PR Raising policy local Manual F-1
2 PR Raising policy Import manual F-2
3 PR Format Software F-3
4 PO Format Software F-4
5 MRR Format Software F-5
6 Store Ledger Format Software F-6
7 TO/TI Format Software F-7
8 Unadjusted Balance (IOU) Slip Format Software F-8
9 Transaction List Format Software F-9
10 Last Purchase Rate Format Software F-10
11 Inventory level Format Software F-11
12 Physical Inventory Report Format Manual F-12

12. STORE RECORD KEEPING IN SUBSIDIARY LEDGER (SL)
 Subsidiary stock ledger is the primary book to keep records of materials in details. An
oracle based SCM Software is maintained ledger of materials under store.
 Purchase Requisition (PR): PR raised by the store person based on
reordering/ordering level and quantity in a standard frequency.

13. Standard Frequency of PR..
Group of Item Order Frequency Remarks
1 RM Once a month
2 Chemical Once a month
3 Stationery Once a month
4 Medicine Once a month
5 Mechanical Once in a month and Need basis
6 Electrical Once in a month and Need basis
7 Packaging Once a month
8 Vehicle Once in a month and Need Basis
9 Tetra Spares Need Basis
10 Civil Need Basis
11 Misc. Once a month
12 Fixed Assets Need Basis
13 MIS Once in a month and Need Basis
14 Trading items On demand

14. Store Physical Control..
 Bulk Raw Material (RM).
# PP HP, CP, RCP,HDPE,LDPE,PC.MS,PET,TPR,ABS,GPPS,HIPS,FILLER Etc.
 Packaging Materials (PM).
# Heat Seal Foil, Inmold Foil, Labels, Stickers, MRP/Barcodes, Gaskets, Manuals,
Tags , Inner packets, Cartons etc.
 Mechanical Items
 Chemical Items
 Electrical Items
 Physical Inventory Reporting
Etc……

15. Reordering/ordering level:
 Reordering/ordering level means the level of stock where requisition to
be placed to SCM.
Reordering/Ordering Level:
= Maximum Lead Time (LT) x Maximum Usage of Materials per Day
Or,
= Safety Stock + Lead time Consumption (LT x Average Consumption per
day).
Lead Time (LT)
= Date of goods delivered – Date of order placed

16. Policy Of PR.. Group’s management
policies
 No need to take print of PR, the purchaser shall procure materials based on
computer software generated copy of PR. No edit in PR via telephone shall be
accepted.
 PR not taken action by the purchaser shall automatically be deleted from software
after 45 days for local purchase and 120 days for imported items.
 No PR can be raised for fixed asset items, if he doesn’t get CEO/DMD’s approval.
 Standard lead time to be given to the purchaser to purchase the requisitioned items.
 PR must be marked “Import” if the items are to be imported.
Continue..

17.  All columns must be filled while raising PR.
 PR must be noted the expected delivery date of goods.
 PR must contain last purchase rate of the requested item.
 Proper specification must be clearly mentioned in PR.
Otherwise PR shall not be valid to take action.
 In case of any deviation approval to be taken from respective
authority/BU heads.
 Separate Policy enclosed for raising PR and maintain lead time
Etc…
Policy

18. Material Receiving Report (MRR):
 After receiving PO and materials (as per requested quality), MRR to be
issued.
 MRR to be authorized via SCM software with the following persons:
1. Store In-charge or designated Store In-charge 2nd in-command,
2. QC In-charge or designated QC 2nd in-command
3. Factory In-charge or designated Factory In-charge 2nd-in-
command
 VAT dept. (for VATable items)
 No. of Copy : 3 (Three)
 MRR Users : (1) Purchaser, (2) Accounts & (3) Store Keeper

19. Policy of MRR..
 MRR to be issued within 48 working hours receiving goods other then Sugar, Palm oil
etc. which to be done within 24 hours.
 MRR to be printed by the authorized person in SCM.
 MRR qty. to be same as actual quantity received and rate to be same as PO.
 MRR must be printed once If it is necessary to get print of MRR twice on the same
day, 2nd copy and onward must be noted as “Duplicate”. If it is necessary to get print
on the following date MRR (Account copy) must be noted as 1/2/3 on the original
MRR.
 The rate of new MRR shall effect based on arrival date rather entry date of MRR. But
arrival date can’t be previous month after the month is closed.

20. Issue of Materials & Other Issue.
 Issue of Materials :The store keeper shall issue materials based on
Consumption Demand (CD) and record the issue/consumption
under the following “Nature of Expenses”
 Nature of expenses : Consumption (CO), Capital Installation (CI),
Fixed Assets (FA), TO, OI.
 Other Receive/Issue: Other receives means any receive other than
receive through MRR like reusable rejection, excess material etc.
Other issue means any issue from other receive.
 Other Receive/Issue: Other receive items are limited. Subject to
concerned authorized person's approval other receive items’ code to
be opened in the software

21. Transfer Out (TO)/Transfer In (TI).
 Transfer Out (TO)/Transfer In (TI): TO and TI is needed when materials are
transferred from one warehouse to another warehouse within the group. Materials
transferring warehouse issue TO at time of physically transferring out the
materials and materials receiving warehouse raise TI against the respective TO
which has already been issued.
Policy:
 DR (Demand Requisition) must be raised before issuing TO.
 TO be used as challan and to be handed over to the driver. Without issuing TO, no
materials or goods can be delivered one location to others location.
 Within 3 days of issuing TO, TI must be raised.

22. Store Ledger :
 Store Ledger : Store ledger is a statement showing the movement of a
particular material , Opening balance, receive, issue and Closing balance.
After proper recording of transaction (from section 1.1 to 1.6) store ledger
to be generated to see the accuracy of qty. and rate of the materials.
 Store Software : Store subsidiary ledger is based on an oracle program
based software. Therefore, no manual ledger needs to be maintained at any
store.

23. Organogram of SCM to support store management.

24. F – Fast
Moving
S- Slow
Moving
N- Non
moving
FSN

25. Non Moving

27. Inventory balancing
Transfer the excess stock to another
company location where the inventory
is needed
# This option is particularly attractive
if the cost of transporting the product
between branches is a small fraction of
the value of the item
Return Material to the Vendor
The actual desirability of this option
varies with each supplier
# The best time to negotiate the terms
for the return of material with a
vendor is before you agree to take on a
new product line or place a very large
purchase order
Reduce the price to “move” the
excess inventory
Department stores do it, why can’t
you?
# A customer might purchase a
discontinued Item if the price is
substantially lower than a similar item
from normal stock

28. Offer salespeople a monetary incentive to
sell the product
Sometimes it is almost miraculous how fast
inventory can move when salespeople are
provided with the proper incentive.
# Remember that inventory is not worth what
you paid for it, it is worth what someone is
willing to pay you for it
Create the position of a Dead Stock
Manager
This person has the responsibility of taking all
dying and dead stock items and making them
disappear
# This person should report directly to the
President of the company, as tough decisions
will have to be made
Re-package it with "good items “
Selling it as part of a package deal
# Bundle it into groups and talk to your better
customers, asking them to take the entire
bundle at a certain price
# Hold a semi-annual or annual "garage sale,"
grouping dead stock with good items -- setting
a goal to sell it all during the one-day "garage
sale;

29. Advertise the availability of this material to
other suppliers
Consider placing ads in industry publications
listing the products you’re planning to liquidate
# There are also Internet World Wide Web sites
that maintain lists of available surplus stock
# Internet sites that specialize in surplus material
allow you to sell specific items in your excess stock
at an amount close to your actual cost
Brainstorm and get creative
Instead of taking the typical non-action of
ignoring the situation, one salesman took
assertive action
# As there was no other use for the material, this
was truly “found” money!
Substitute the product for a less-expensive
item.
Department stores do it, why can’t you?
# Change The Marketing Policy

30. Donate the material to a non-profit organization
Can a school, church, or charity use some of your dead
or slow-moving inventory?
# Do This With Some Marketing View
Throw it away
The least agreeable alternative
# Throwing Can be with some vendor, with customer as
free offer with some sales & Marketing policy which is
feasible for you
# At least your freeing up some shelf space in your
warehouse, getting rid of an eyesore, and getting some
value by being able to write off the cost of the material.
# But be sure you have tried all of the other possibilities
before you implement this last resort.

31. Search For Alternate Uses of
The Stock. All The User
Department should be
informed
The List of the obsolete Item
can be circulated to other
similar organization by
creating mutual
understanding
Approach Some trading
organization who are in touch
with other similar organization
who may need the item for
their promotional or regular
activities
By tendering out or by auction.
Selling to traders who by the
product as is where is basis.

32. Get Rid of Dead Stock
Product
Promotion
s
Distributo
r Support
&
Training
Contests
Product
For Work
Industry
Awards
Selling
To
Employee
New Idea

33. Thanks to all.