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Is stockopname sampling possible?

 

One day I got into the Manufacturing Company, say Company A.

In the Logistics Department I saw a job description of a staff member.

In the job description, I see that one of the routine tasks is stockpname sampling 10 item codes per day in the warehouse.

At a glance, the stock-record sampling of 10 item codes per day seems easy. What do you think?

Then I asked the Logistics Staff whether the stock-taking sampling was working, it was not working, he said. Why?

I will explain the answer.

The storage of one item code in Company A's warehouse was scattered in several locations in one warehouse.

So, for example, the 10 code items to be sampled are item codes: A, B, C, D, E, F, G, H, I, J.

When the Logistics Staff enters the warehouse to carry out stockopname sampling, the first item code to be stockpiled is the item code A, the Logistics Staff will go to the location where item code A is usually stored, say the stock is 10 pcs, it will be recorded on the paper stock item A is 10.

Is A total stock of goods = 10? No, because as already stated, the goods in the warehouse are scattered, the Logistics Staff will continue to look for item A codes in other locations. Because his memory is limited, he will search the entire warehouse, another place where item A is stored.

So if the Logistics Staff is asked stockopname sampling 10 items per day, this means "combing" the warehouse 10 times per day, difficult and time consuming, right?

Because of this routine task of stock-taking sampling was no longer done by the logistics staff.

The cause of not easy stock-taking sampling is the spread of one item code to several locations.

Do you have any ideas so that this stockopname sampling can be done?

The easiest idea is to reunite the scattered items.

Is this reunification idea easy? Very difficult and time-consuming and personnel-consuming, bringing back scattered items is much more difficult and resource-consuming than a full stock-record.

The thing that makes this illogical is that when the concatenation job isn't finished, the batched item code starts to scatter again.

Is there a better idea than yours?

Stock data on computer is not up to date

 

One day the PPIC staff saw the raw material stock on their computer, the stock was sufficient, then a Production DSS was made. After the Production DSS is given to the Production Department, the SPK is used as the basis for requesting raw materials from the warehouse. It turned out that the stock of raw materials in the warehouse for SPK was empty. Why is that?

One day the Purchasing Staff saw the below minimum stock report on their computer, there were several SKUs that were below the minimum stock and had to be ordered to the Supplier immediately. Then a PO is made for the Supplier. After the goods from the supplier arrive, it turns out that there are still a lot of stock in the warehouse, still far above the minimum stock. Why is that?

There are several reasons for discrepancies in stock data, in this article I will discuss one of them.

One thing that is often overlooked by the Company is that the actual stock data is not up to date, so when PPIC Staff and Purchasing Staff see the stock data on their computers, the data that appears is not up to date data, maybe yesterday's data, maybe last week's data. Why does this happen?

Try to ask the Manager / Head of Warehouse this question: "Which one is done first: input receipt data into software or load and place goods on the shelf?"

My experience in many companies, some (if not want to say most of it) Warehouse Managers do not know about administrative problems in the field. CMIIW.

So the Administration in the Warehouse field is less aware that delays in data input of receipts or expenditures or returns will have an impact on not updating the stock which as a result will be immediately felt by the relevant departments: Purchasing (raw materials, spare parts, etc.), PPIC (raw materials, finished goods) , Marketing (finished goods), Accounting (all warehouses).

I will try to discuss one by one.

Purchasing (raw materials, spare parts, etc.): Purchasing will buy raw materials, spare parts that should not be purchased, this means waste of money, consuming warehouse space, damage to raw materials due to excess stock.

PPIC (raw materials and finished goods): production planning is interrupted, production is interrupted, delivery to customers is interrupted.

Marketing (finished goods): sales are interrupted, delivery to customers is interrupted.

Accounting (all warehouses): The biggest difference in stockopnames could be due to a 'hanger' for input data which can be multiple. Accounting and warehouse often don't realize this. This will be discussed in the next article on the topic of stockopname.

It is clear that the impact is not very large, the loss in terms of Rp is also large.

The next question: How to solve this, how to make Warehouse Personnel input data up-to-date?

To add to the complexity of this problem, the Warehouse Admin usually uses the ERP provided by the Company, but also has a self-made application, usually Excel which usually takes precedence over data input.

The order is usually: Enter the goods to the warehouse to the shelf, Excel input, last ERP input.

Goods received in the morning, can be inputted in the ERP during the day after lunch or the next day.

So the stock data cutoff is confusing: up-to-date sales data, goods receipt data is half or 1 day late, sales returns are 2-3 days late.

We all know that gathering Warehouse Personnel at the meeting reminds this (so that data input is up to date) will not be completely successful.

What is your answer?

Is stock take or stocktake any use?

 

When giving the workshop the accuracy of stock and stock-taking, I often ask this question "Is the stock-taking which has been routinely done so far be of any use to improve the accuracy of warehouse stock data?" Usually, almost all workshop participants without thinking about it will answer that it is useless.

What if I give you the same question?

Actually the answer to this question will be closely related to the state of the warehouse stock data accuracy before and after the stock-taking, if the accuracy of this year's stock data is better than the accuracy of the stock data from a year ago then the stock data accuracy will make sense, but if the data accuracy stock is 'running in place' and it can be said that there is no progress from year to year, so it can be said that the stock-record is actually useless for the accuracy of warehouse stock data.

 

If a stock-record is no longer useful to improve the accuracy of warehouse stock data and until now it is still routinely carried out, it may still be useful for the Accounting Department.

If you ask the Accounting Department, "Is stockopname any use?" surely they will say it's worth it because they need the end of month stock data to be multiplied by the cost of goods to get the inventory value figure.

Stockopname usually requires a lot of time and resources, you can easily calculate how much it costs each time to take stock-taking.

Is it worth the cost incurred just to provide end-of-month stock data to the Accounting Department?

My next question is "if you only need month-end stock data, why not take data from computer software?"

I will discuss this question in the next article, we will first return to the use of stock-record for the Warehouse Department.

 

From the perspective of the Warehouse or Logistics Department, my question should be rethought: "Is the stock-taking that has been routinely done so far be of use to improve the accuracy of warehouse stock data?"

The Warehouse Department could not say there was any point but the results spoke differently.

If the stock-record is useless to increase the accuracy of the warehouse stock, it should be done again or the method is changed.

 

PPIC is like a circus performer

  

In order to fix the Manufacturing Company's warehouse, we often deal with the PPIC Department.

As we know, the main responsibilities of PPIC are: Lowering Production Orders, which includes: determining the production schedule and calculating raw material requirements.

In the PPIC room I often find a wide white board, which writes the production plan, how much is outstanding, the realization, etc.


When PPIC wants to submit the Production Order / MO / SPK they first check the stock of raw materials on their computer, after OK, they print out the production order, give it to the Production Department.


Then the Production Dept. asked for raw materials to the warehouse, when the warehouse turned out to be raw material stock was not there / was lacking!


PPIC immediately received information, and had to change the Production Plan, the pending Production Order, find the next priority, check the raw stock stock, print out the production order.


But the case of stock irregularities in the raw material warehouse can happen again.


PPIC is often shocked and tries to use replacement BOM, or has to change the priority of impromptu production, this is what I mean like circus performers, they often have to turn upside down.


In many manufacturing companies, the realization of production is often driven not by priority but by the availability of raw materials in the warehouse.


From the sentence above, we can conclude further: delivery to customers is very dependent on the accuracy of warehouse stock data.


In many Manufacturing Companies, if I visit to talk to the PPIC Manager, it's often very difficult, maybe they are turning upside down?

Wrong Cashier?

 

The true story, one day I shop monthly at the supermarket, I buy 10  toothpaste, 3 big and 7 small ones.

The cashier took 1 large toothpaste, scanned it, then typed in the number 10.

I received a receipt for 10 large toothpaste, even though the item I received was 3 large toothpaste 7 small toothpaste.

Due to this the supermarket stock is not accurate.

 

In this case what was wrong?

Most of us say the cashier is wrong, software is as good as it is if the people are not careful still.

Do you agree with this?

 

We continue this story, if we replace the wrong cashier with new personnel who we think are more careful, will the same error still occur?

What do you say? Not happening or still happening or definitely happening?

In my opinion, whoever the person is the cashier, the same mistake will happen.

 

Many companies consider the wrong warehouse personnel, look for a more thorough replacement, but the results are more or less the same.

In my opinion, the one who is wrong in this case is not the cashier, the shipping error in your warehouse is not the checker but the system error.