Successful inventory management involves creating a purchasing plan that will ensure that items are available when they are needed (but that neither too much nor too little is purchased) and keeping track of existing inventory and its use.

1. INVENTORY MANAGEMENT AND CONTROL

2. WHY INVENTORY MANAGEMENT
• Controlling the material usage i.e. purchasing and issuing
material in optimum cost and time.
• Maintaining the database for the ease of analysis i.e.
• Material required
• Material purchased and
• Material used
• Allocating the specific material to the specific location to
make storage easy and damage free.
• Ease of tracking database and material.
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3. WHAT ARE WE LOOKING FOR
• To implement the system for easy and controlled material flow, from
purchasing material to issue it to the end user.
• To ensure that the material is given to end user only for genuine purpose of
production or the activity related to production.
• To keep the material safe in a custody of a responsible person, where no
other person without an authority has an access of it.
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4. ISSUES NEED TO BE RESOLVE
• Database of material received, material issued and balanced qty details
have not been maintained.
Everyone has an access to the storage material.
Issuing code of conduct is not defined for returnable and non-returnable
material.
Material location and way to store it, is not defined.
•
•
•
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5. FOCUS
 Requirements from Management
•
•
•
Control over inventory of material
Keeping the material in a safe place provided with locker.
Setting up the procedure to receive material and issue material
with proper execution.
Ease of material and database tracking.•
 Requirements from end user
 Availability of a material or tool at any required time
 Easy procedure to issue the material
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6. 




Qty of each item
Exact location and how to store
Prior Notification to procure
Frequency of material usage to control the usage of the material
Space Available
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Maintaining Database

7. ACTION PLAN
1.
2.
Making list of all the material to be stored
Sorting the material as per the type i.e. Maintenance, Raw material,
Hand tools, electrical items etc.
Allocating the specific material a specific location as per the type,
keeping it safely, storing it without damage and ease of handling.
Deciding the procedure for procuring, issuing and controlling the
material .
3.
4.
5.
6.
Maintaining the database as per the process decide.
Giving end user training regarding the process of issuing material
and
Spreading awareness of controlling the inventory for successful
results.
7.
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8.  Inventory list need to be made of all the materials which facilitate the
production directly or indirectly.
This list contains
a. All the raw material for the product and the jigs and fixtures to
facilitate production (SS, MS, POM, Al, PVC, Bakelite).
All the fasteners.
Tools and safety equipments.
b.
c.
d.
e.
f.
Electrical components and maintenance items.
Pneumatic accessories.
Lubricants, lifting equipments, clamps etc.
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INVENTORY LIST

9. SORTING OF MATERIAL
• After the list of all the material is made, the material will be sorted as per , a) Raw
material for product, b) Raw material for fixture, c) Hand tools, D) Portable
machines, E) Fasteners, F) Safety equipments G) Machine spare parts, H) Electrical
items, I) Lubricants.
Raw material for product Raw material for fixture Hand tools Portable machines Fasteners
Safety equipments M/c spare parts Electrical items Lubricants
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10. Storage of the material
All the material will be kept in safety fence or storage building as per the
allocation.
For max utilization of the storage racks more partitions can be used so that
vertical space utilization can be achieved.
The material storage allocation will be decided on the basis of:
•
•
•
a.
b.
c.
Type of material.
Frequency of usage.
Rough/ Fragile.
Safety
fence
d.
e.
Space required.
Bulky/ light wt.
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11. Storage of the material
A. Raw material : Location SR1-C
 The raw material for fixture will be procured in required size only. The stock for raw
material fixture need to maintain as less as possible.
The raw material can be available from purchase dept side in a day or maximum in three
days (as discussed with Mr. Nilesh Bagul).
This would save the space required and utilization of material will be optimum. The
design team can give the material requirement one or two days before.
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

B. Safety equipments and hand tools: Location CB2-C
 Safety equipments and hand tool required for production need to provide for each
machine in advance for every day use.
These tools and equipments need to keep on shadow board of that particular machine.
Whenever operator needs the new tool or equipment, he needs to give the used material
details before.


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12. Storage of the material
C. Fasteners: Location
 The fasteners can be stored in a small storage system with multiple drawers or a box with
multiple partitions or in a drawer of a trolley in small plastic box.
 Sizes like M3*10, M4*10 will be kept together in same drawer as it requires less space in
zip bags.
D. Wire coils: Location- storage building


All wire coils will be stored in storage building on pallet
Only one coil of dia 2.9 & one of dia 5.8 will be stored in trial production building for any
sudden requirement. And these coils will be stored outside the safety storage area.
One pallet will contain one coil only. And inventory in charge need to make sure that it is
tied properly with lifting ring. This will provide ease in coil movement and loading.

E. Portable machines: Location
 Portable m/cs are supposed to be kept in a safe location separately in a cupboard.
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13. Storage of the material
F. Lubricants: Location- storage building
 The material like wire coils and lubricants can be stored in storage building, coz lubricants
can cause dirt if spilled and wire coils require large space, frequency of use is less.
G. Electrical items: Location-SR3
H. Machine spare parts: Location- SR4
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14. • A store in charge will maintain a record of used material and once it goes
below the safety limit, he will raise the BOR.
Material procurement/purchase will be done only after the authorized
person signed the BOR.
The quantity of material will be decided by supervisor on the theoretical
calculations or/and previous consumption.
•
•
A. Raw material :
•
•
Raw material will be procured if the size is not available in inventory.
Raw material for inventory should not be more than 1meter in length
for the ease of storage.
B. Safety tools and hand tools and other material:
• As soon as the inventory reaches the safety stock limit, next lot of
procurement can be ordered.
If the material is scraped the scrap report need to be formed.•
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PROCEDURE FOR PROCURING THE MATERIAL

15. •
•
Once the material brought in, it will first checked for proposed quality.
If the material is OK, the register entry need to be made in material receive
sheet or it will be handed back to purchase dept.
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PROCEDURE FOR PROCURING THE MATERIAL

16. • Raw material will be issued only through Material issue slip.
• This slip to be honoured only after signature from RK Singh. In absence of Mr.Singh,
Mr. Anil Kulkarni.
•
•
Inventory in charge will take the slip and issue a material.
A register entry will be made with signature of the issuer.
• The slip will be kept in a file for any future reference.
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PROCEDURE FOR ISSUING THE MATERIAL

17. • Hand tools and portable machines or any material which is expected to
submit back to inventory store are considered as the returnable material.
A register entry need to make for issuing the returnable material with the
expected returnable date or time.
•
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PROCEDURE FOR RETURNABLE MATERIAL MATERIAL

18. •
•
A store in charge has to maintain the control sheet for the material issued.
This will be the record of specific amount of material used in specific
duration, as well as it will be an intimation of a reducing stock of the
material for the next procurement.
• At the end of the month or quarter year, this database can be used to
calculate the frequency of usage of the material.
If the usage is excess, control measures can be taken.•
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MAINTAINING THE DATABASE

19. Training
• A training for the new code of conduct for material flow need to be given to
the staff.
A meeting or a session can be arranged to teach the process.
Hard copy of the protocol can be displayed outside the safety fence for the
reference.
•
•
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20. Inventory control awareness
• Awareness for the optimum usage is necessary amongst the team for
successful implementation of the plan.
to serve this purpose a sign boards, pictures, charts can be displayed in trial
production building
•
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