Presentation
•Download as PPTX, PDF•
1 like•452 views
1. There were an average of 47% reconciling items during finished goods inventory counts from June to November 2012, resulting in late posting of inventory counts and submission of reports. 2. A root cause analysis identified issues with people, products, procedures, and external factors contributing to the reconciling items. Key issues included late/incorrect posting, untransferred goods, and delays in recoveries documentation. 3. Proposed solutions aimed to reduce reconciling items by 80% through strict real-time posting procedures, coordinated reconciliation processes, and ensuring goods are accurately located in the system.
Recommended
More Related Content
What's hot
What's hot (8)
Similar to Presentation
Similar to Presentation (20)
Recently uploaded
Recently uploaded (20)
Presentation
- 1. Front / first slide
- 2. Cast: Russel Noviza Rey San Pedro Chris Aranzaso Jeff Arnes Ara Masicap Diana Herrera Project Title: Producer: CHIQCLOG TEAM Director: Huy Q. Truong Date: May 28, 2013 Location: Can Asian Inc. Boardroom ???????????????
- 3. Problem Stratification No. Proposed Problem Cost Impact Controllability / Achievability Result 1. Low value imported spare parts with high freight charges PhP 184,000.00 High 7% or 23 purchases out of 307 purchases have value lower than US$200.00 2. Too many reconciling items that leads to late posting of Inventory Count and submission of FG Inventory Report None Medium Average of 47% reconciling items from June to November, 2012 3. Late processing of recoveries documents from HFI to FG (Delivery of FG before transfer posting) TBD Low 4. Container deposits with deductions PhP 21,693.84 Medium Average of 1% deductions from Jan- Dec. 2012 5. Non-moving FGs without PO Low
- 4. Introduction Logistics Department Purchasing Inventory Supply Planning and Control Physical Distribution / Warehousing
- 5. Purchasing Inventory Supply Planning and Control Introduction Logistics Department Physical Distribution / Warehousing
- 6. Introduction
- 7. Process Flow Physical Inventory Count of Finished Goods FG Physical Inventory Count Email Schedule of Inventory Count Create PID for FG Prepare Count Sheets Logistics Asst. - PD/Warehousing Logistics Asst. - PD/Warehousing TPL Warehousing
- 8. Process Flow Physical Inventory Count of Finished Goods FG Physical Inventory Count Email Schedule of Inventory Count Create PID for FG Prepare Count Sheets Logistics Asst. - PD/Warehousing Logistics Asst. - PD/Warehousing TPL Warehousing Conduct Inventory Count Finance, Logistics, TPL Reconciliation of Inventory Count Finance, Logistics, TPL Agreed? Conduct Recount NO YES Countersign the count sheets Finance, Logistics, TPL Finance, Logistics, TPL
- 9. Process Flow Physical Inventory Count of Finished Goods Conduct Inventory Count Finance, Logistics, TPL Reconciliation of Inventory Count Finance, Logistics, TPL Agreed? Conduct Recount NO YES Countersign the count sheets Finance, Logistics, TPL Finance, Logistics, TPL Prepare summary of the count and count report including reconciling documents Logistics Asst. – PD/Warehousing Validate the correct summary versus SAP count Finance Assistant Post PID of Inventory Count Logistics Assistant. – PD Warehousing Submit inventory count report Logistics Assistant. – PD Warehousing Prepare summary of the count and count report including reconciling documents Validate the correct summary versus SAP count Post PID of Inventory Count Submit inventory count report
- 10. Process Flow Physical Inventory Count of Finished Goods Prepare summary of the count and count report including reconciling documents Logistics Asst. – PD/Warehousing Validate the correct summary versus SAP count Finance Assistant Post PID of Inventory Count Logistics Assistant. – PD Warehousing Submit inventory count report Logistics Assistant. – PD Warehousing Counted FG
- 11. Problem Statement There were an average of 47% reconciling items in pallets during FG inventory count from June – November, 2012 Results: Late Posting of Inventory Count and Submission of report
- 12. Reconciling Items Months No. of Pallets No. of Reconciling items in Pallets % Production PD/ Warehousing June 3,081 944 30.64% 22.49% 8.15% July 2,555 457 17.89% 9.86% 8.73% August 2,682 2,180 81.28% 49.55% 31.73% September 1,866 521 27.92% 15.27% 12.65% October 2,042 1,065 52.15% 32.03% 20.13% November 1,530 1,127 73.66% 44.58% 29.08% 13,756 6,294 47.26% 28.96% 18.41% Initial Objectives To reduce the monthly reconciling items by 80% during FG Inventory Count Desired Effect Posting of Inventory Count within 10 working days from date of Count and Submission of Report within 20 days from date of posting
- 13. Root Cause Analysis There were an average of 47% reconciling items in pallets during FG inventory count from June – November, 2012 People Product Procedure Patrons
- 14. People PD personnel was not able to post DR before the count DR not yet returned to Logistics PD for posting before the scheduled inventory count FG currently being delivered to customer As per customer's schedule Insufficient SAP inventory Newly produced FG not yet transferred to FG Store location
- 15. Newly produced FG not yet transferred to FG Store location No created FGTR (Production) Reconciliation of FG was not made on-time by TPL, PD and Production Agreed schedule of reconciliation by TPL, PD & Production was not followed Real time posting was not strictly implemented (Production- within 24 hours from date of Production) Real time posting is not strictly implemented and included in the procedure of Production No penalty for late posting of FGTR
- 16. People PD personnel was not able to post DR before the count DR not yet returned to Logistics PD for posting before the scheduled inventory count FG currently being delivered to customer As per customer's schedule Insufficient SAP inventory Newly produced FG not yet transferred to FG Store location Recoveries from HFI were being delivered to customer before posting to FG storloc
- 17. Recoveries from HFI were being delivered to customer before posting to FG storloc FGTR was not yet prepared before the delivery Not being prioritized Engaged in other activities FGTR was not yet prepared before the delivery Real time posting is not strictly implemented and included in the procedure of Production
- 18. People Production personnel was not able to post the FGTR of recoveries on time Accumulated FGTR over the weekends needs time to verify before posting Documents of recoveries in conflict with database and actual Database not regularly updated (production) Production Staff engage in other activities Lack of Production Staff personnel to do the database updating and FGTR posting regularly
- 19. People Made an error in inputting the correct quantity in SAP Quantity inputted in SAP is less than actual quantity received Quantity inputted in SAP is more than actual quantity received TPL acknowledge the quantity of FG in the FGTR without counter checking
- 20. Quantity inputted in SAP is less than actual quantity received Status of the pallets reflected in the POR are not clear if HFI or Good Manual writing (sample attached) Not all copies of the POR (Prod., QA, TPL) are being updated. (see attach sample) Updating of the POR was made after segregating and distributing the copies (Prod., QA, TPL)
- 21. People Made an error in inputting the correct quantity in SAP Quantity inputted in SAP is less than actual quantity received Quantity inputted in SAP is more than actual quantity received TPL acknowledge the quantity of FG in the FGTR without counter checking
- 22. Quantity inputted in SAP is more than actual quantity received Status of the pallets reflected in the POR are not clear if HFI or Good Manual writing (sample attached) Not all copies of the POR (Prod., QA, TPL) are not being updated. (see attach sample) Updating of the POR was made after segregating and distributing the copies (Prod., QA, TPL)
- 23. Root Cause Analysis There were an average of 47% reconciling items in pallets during FG inventory count from June – November, 2012 People Product Procedure Patrons
- 24. Product DR was not immediately returned by Customer Schedule of unloading was delayed Expired Cans not counted but still on SAP For write-off . Waiting for approval. Separate count
- 25. Root Cause Analysis There were an average of 47% reconciling items in pallets during FG inventory count from June – November, 2012 People Product Procedure Patrons
- 26. Procedure Insufficient SAP inventory Newly produced FG not yet transferred to FG Store location Recoveries from HFI delivered to customer but not yet posted to FG storloc Late confirmation by Production Personnel
- 27. Newly produced FG not yet transferred to FG Store location No created FGTR (Production) Reconciliation of FG was not made on- time by TPL, PD and Production Agreed schedule of reconciliation by TPL, PD & Production was not followed Engaged in other activities Real time posting was not strictly implemented (Production- within 24 hours from date of Production) Real time posting is not included in the procedure of Production No penalty for late posting of FGTR
- 28. Procedure Insufficient SAP inventory Newly produced FG not yet transferred to FG Store location Recoveries from HFI delivered to customer but not yet posted to FG storloc Late confirmation by Production Personnel
- 29. Recoveries from HFI delivered to customer but not yet posted to FG storloc FGTR was not yet prepared before and after the delivery Not being prioritized Engaged in other activities Real time posting was not strictly implemented Real time posting is not included in the procedure of Production
- 30. Procedure Insufficient SAP inventory Newly produced FG not yet transferred to FG Store location Recoveries from HFI delivered to customer but not yet posted to FG storloc Late confirmation by Production Personnel
- 31. Late confirmation by Production Personnel Real time posting was not strictly implemented (Production- within 24 hours from date of Production) Real time posting is not included in the procedure of Production Engage in other activities