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Business Services Section Head – David Carlson Business Services Section Deputy Head – Jeff Irvin Property & Inventory Control Manager – Jack Kelly Assistant.

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Presentation on theme: "Business Services Section Head – David Carlson Business Services Section Deputy Head – Jeff Irvin Property & Inventory Control Manager – Jack Kelly Assistant."— Presentation transcript:

1 Business Services Section Head – David Carlson Business Services Section Deputy Head – Jeff Irvin Property & Inventory Control Manager – Jack Kelly Assistant Property & Inventory Control Manager - Gary Golinski Inventory Control Supervisor – Shelby Jones Lead Store Keeper – Bert Zamora Three (3) Store Keepers – Jeff Clark Dan Ewen Kevin Coppert Property Management Supervisor – Dale Wilderspin Two (2) Material Services Forman – Dave Seifert Scott Borton Seven (7) Property Clerks – Ann Arnold Wayne Braun Alex Hernandez Chris Hirner Tom Miller Louvie Dan Nelson Brian Slatton Two (2) Material Specialists – Dave Bundy Todd Wagner 1

2 Stockroom operation has two (2) storeroom locations: Main Stockroom & Whse Stockroom. Number Dollars Ending Inventory Balance 12/31/10 663,000 Issues for CY10 38,558 1,908,000 Receipts for CY10 6,461 1,894,000 Returns for CY10 723 GRAND TOTAL: 45,742 Gas Cylinders Handled for CY10 7,673 Inventory Turns for CY10 2.88 Purchase Orders / Releases Approved in CY10 2,200 Total Number of SKU’s 4,750 We utilize location control and the faster moving items are located closer to our counter operations. Stockroom operation has two (2) storeroom locations: Main Stockroom & Whse Stockroom. Number Dollars Ending Inventory Balance 12/31/10 663,000 Issues for CY10 38,558 1,908,000 Receipts for CY10 6,461 1,894,000 Returns for CY10 723 GRAND TOTAL: 45,742 Gas Cylinders Handled for CY10 7,673 Inventory Turns for CY10 2.88 Purchase Orders / Releases Approved in CY10 2,200 Total Number of SKU’s 4,750 We utilize location control and the faster moving items are located closer to our counter operations. 2

3 Systems That We Use In Our Stockroom Operation  Oracle Public Sector Financials Fully Integrated System - Inventory Module - Purchasing which includes Requisitioning Process & Receiving Process - Accounts Payable - General Ledger - Project Accounting  Oracle Discoverer Tool Used to Create Queries Against Oracle Databases Systems That We Use In Our Stockroom Operation  Oracle Public Sector Financials Fully Integrated System - Inventory Module - Purchasing which includes Requisitioning Process & Receiving Process - Accounts Payable - General Ledger - Project Accounting  Oracle Discoverer Tool Used to Create Queries Against Oracle Databases 3

4 How We Order / Restock the Shelves Run the Min–Max Report Verify the Minimum & Maximum Quantities are Appropriate by using the Latest Usage Report. Update These Quantities if Necessary. Create Requisitions from the Min-Max Report Place Purchase Orders – Most of the Items are Procured from the Same Vendors Material is Received from the Vendor. Receiving Report Generated. This Provides Last Location of where Material was Issued from. 4

5 Blanket Purchases The Stockroom has established Blanket Purchase Agreements  Swagelok Gas Fittings  Parker Hannifan Fittings  Plumbing Supplies  Tools  Fasteners  Office Supplies  Cylinders/Dewars  5 Gallon Water Bottles The Stockroom has established Blanket Purchase Agreements  Swagelok Gas Fittings  Parker Hannifan Fittings  Plumbing Supplies  Tools  Fasteners  Office Supplies  Cylinders/Dewars  5 Gallon Water Bottles 5

6 Blanket Purchases (con’t) Spreadsheets were created for these commodities & sent to 4 or 5 local suppliers. Information provided to suppliers included:  Previous 2 year usage  Current on-hand availability  Open-orders  Back-orders  Potential yearly order Most of these contracts were set up as a 5-year contract with yearly fixed pricing. Spreadsheets were created for these commodities & sent to 4 or 5 local suppliers. Information provided to suppliers included:  Previous 2 year usage  Current on-hand availability  Open-orders  Back-orders  Potential yearly order Most of these contracts were set up as a 5-year contract with yearly fixed pricing. 6

7 Pay Upon Receipt (PUR) Option within Oracle to set up specific vendor site as payment occurs upon receipt How does this work?  Create Blanket Purchase Order and choose PUR vendor site. This is set up with PUR terms.  Create release against Blanket PO.  Vendor sends us the material.  Run a job in Oracle that creates an Invoice.  Run “Check-Register” and “Invoice Register” (2 times each week).  Vendor is sent “Invoice Register” and “Check Register”. Invoice has detailed information about the release, line #, our part # and quantity received. Option within Oracle to set up specific vendor site as payment occurs upon receipt How does this work?  Create Blanket Purchase Order and choose PUR vendor site. This is set up with PUR terms.  Create release against Blanket PO.  Vendor sends us the material.  Run a job in Oracle that creates an Invoice.  Run “Check-Register” and “Invoice Register” (2 times each week).  Vendor is sent “Invoice Register” and “Check Register”. Invoice has detailed information about the release, line #, our part # and quantity received. 7

8 Pro’s/Con’s to Setting Up Blankets/PUR Contracts Pro’s  Inventory supervisor creates the releases instead of requisition(s) being sent to Procurement, getting assigned to a buyer and placed on an order.  Do not have to get pricing from vendor. Fixed pricing for 12 month period.  For Pay Upon Receipt (PUR) contracts, the vendor does not have to send and invoice – payment is automatically created after receipt occurs.  Savings for the vendor and Fermilab Accounts Payable group. Con’s For PUR contracts, difficult to back out invoices. Pro’s  Inventory supervisor creates the releases instead of requisition(s) being sent to Procurement, getting assigned to a buyer and placed on an order.  Do not have to get pricing from vendor. Fixed pricing for 12 month period.  For Pay Upon Receipt (PUR) contracts, the vendor does not have to send and invoice – payment is automatically created after receipt occurs.  Savings for the vendor and Fermilab Accounts Payable group. Con’s For PUR contracts, difficult to back out invoices. 8

9 Stockroom Cylinder/Dewar Process Our Process Before July 2008  Customer calls in an order for specific cylinder/dewar that is under ISS control – approximately 30 different SKU’s are common use.  Customer informs us of: Deliver To Location, Project & Task to charge and if there are any empty cylinders/dewars to be picked up.  Lead Storekeeper accumulates worksheets and prepares one paper requisition that is faxed to vendor.  Vendor delivers full cylinders to BSS ISS Gas Shed Operation and picks up any empty cylinders/dewars.  BSS Transportation Services picks up cylinders/dewars for on-site delivery and obtains delivery ticket information from ISS Lead Storkeeper. Our Process Before July 2008  Customer calls in an order for specific cylinder/dewar that is under ISS control – approximately 30 different SKU’s are common use.  Customer informs us of: Deliver To Location, Project & Task to charge and if there are any empty cylinders/dewars to be picked up.  Lead Storekeeper accumulates worksheets and prepares one paper requisition that is faxed to vendor.  Vendor delivers full cylinders to BSS ISS Gas Shed Operation and picks up any empty cylinders/dewars.  BSS Transportation Services picks up cylinders/dewars for on-site delivery and obtains delivery ticket information from ISS Lead Storkeeper. 9

10 Stockroom Cylinder/Dewar Process (con’t) Why Did We Make the Change After July 2008?  Transportation Services (TS) Management was approached by our Dispatch Operation (Drivers) about some safety concerns about the Lab’s cylinder delivery truck.  Was this going to be cost beneficial for the Laboratory?  TS Management did analysis of what the total cost was for delivering cylinders/dewars.  Included in this total cost – Driver Labor Cost, Stockroom Labor Cost and Fuel Cost & Maintenance of the cylinder truck. Why Did We Make the Change After July 2008?  Transportation Services (TS) Management was approached by our Dispatch Operation (Drivers) about some safety concerns about the Lab’s cylinder delivery truck.  Was this going to be cost beneficial for the Laboratory?  TS Management did analysis of what the total cost was for delivering cylinders/dewars.  Included in this total cost – Driver Labor Cost, Stockroom Labor Cost and Fuel Cost & Maintenance of the cylinder truck. 10

11 Driver Labor Information MON TUES WED THU FRI HOURS AVG. RATE COST/DAY 1.Date 25-Feb 26-Feb 27-Feb 28-Feb 29-Feb Hours 8 4 4 4 8 28 5.6 28 $156.80 2.Date 17-Mar 18-Mar 19-Mar 20-Mar 21-Mar Hours 4 5.5 4 5.5 4 23 4.6 28 $128.80 3.Date 24-Mar 25-Mar 26-Mar 27-Mar 28-Mar Hours 5 5 4 6 4 24 4.8 28 $134.40 4.Date 31-Mar 1-Apr 2-Apr 3-Apr 4-Apr Hours 4 5.5 4 5.5 4 35.5 7.1 28 $198.80 5.Date 7-Apr 8-Apr 9-Apr 10-Apr 11-Apr Hours 8 7 7 8 6 36 7.2 28 $201.60 6.Date 14-Apr 15-Apr 16-Apr 17-Apr 18-Apr Hours 6 8 8 8 6 36 7.2 28 $201.60 7.Date 21-Apr 22-Apr 23-Apr 24-Apr 25-Apr Hours 4 5.5 7 7 6 29.5 5.9 28 $165.20 8.Date 28-Apr 29-Apr 30-Apr 1-May 2-May Hours 8 8 6 6 6 34 6.8 28 $194.40 9.Date 1-Nov 2-Nov 5-Nov 6-Nov 7-Nov Hours 4 8 8 6 8 34 6.8 28 $194.40 10.Date 8-Nov 9-Nov 12-Nov 13-Nov 14-Nov Hours 8 6 8 8 8 38 7.6 28 $212.80 11.Date 15-Nov 16-Nov 19-Nov 20-Nov 21-Nov Hours 3 8 4 3 3 21 4.2 28 $117.60 12.Date 1-Oct 2-Oct 3-Oct 4-Oct 5-Oct Hours 4 8 8 6 8 21 4.2 28 $117.60 13.Date 8-Oct 9-Oct 10-Oct 11-Oct 12-Oct Hours 3 6 2 4 6 21 4.2 28 $117.60 14.Date 15-Oct 16-Oct 17-Oct 18-Oct 19-Oct Hours 6 4 4 5 3 224.4 28 $123.20 15.Date 22-Oct 23-Oct 24-Oct 25-Oct 26-Oct Hours 6 5 5 4 2 224.4 28 $123.20 425 85 28$ 2,380.00 26.5625 5.3125$ 158.70 Avg. Cost/Day/Driver $ 3,332.00 Monthly average Driver Labor Information MON TUES WED THU FRI HOURS AVG. RATE COST/DAY 1.Date 25-Feb 26-Feb 27-Feb 28-Feb 29-Feb Hours 8 4 4 4 8 28 5.6 28 $156.80 2.Date 17-Mar 18-Mar 19-Mar 20-Mar 21-Mar Hours 4 5.5 4 5.5 4 23 4.6 28 $128.80 3.Date 24-Mar 25-Mar 26-Mar 27-Mar 28-Mar Hours 5 5 4 6 4 24 4.8 28 $134.40 4.Date 31-Mar 1-Apr 2-Apr 3-Apr 4-Apr Hours 4 5.5 4 5.5 4 35.5 7.1 28 $198.80 5.Date 7-Apr 8-Apr 9-Apr 10-Apr 11-Apr Hours 8 7 7 8 6 36 7.2 28 $201.60 6.Date 14-Apr 15-Apr 16-Apr 17-Apr 18-Apr Hours 6 8 8 8 6 36 7.2 28 $201.60 7.Date 21-Apr 22-Apr 23-Apr 24-Apr 25-Apr Hours 4 5.5 7 7 6 29.5 5.9 28 $165.20 8.Date 28-Apr 29-Apr 30-Apr 1-May 2-May Hours 8 8 6 6 6 34 6.8 28 $194.40 9.Date 1-Nov 2-Nov 5-Nov 6-Nov 7-Nov Hours 4 8 8 6 8 34 6.8 28 $194.40 10.Date 8-Nov 9-Nov 12-Nov 13-Nov 14-Nov Hours 8 6 8 8 8 38 7.6 28 $212.80 11.Date 15-Nov 16-Nov 19-Nov 20-Nov 21-Nov Hours 3 8 4 3 3 21 4.2 28 $117.60 12.Date 1-Oct 2-Oct 3-Oct 4-Oct 5-Oct Hours 4 8 8 6 8 21 4.2 28 $117.60 13.Date 8-Oct 9-Oct 10-Oct 11-Oct 12-Oct Hours 3 6 2 4 6 21 4.2 28 $117.60 14.Date 15-Oct 16-Oct 17-Oct 18-Oct 19-Oct Hours 6 4 4 5 3 224.4 28 $123.20 15.Date 22-Oct 23-Oct 24-Oct 25-Oct 26-Oct Hours 6 5 5 4 2 224.4 28 $123.20 425 85 28$ 2,380.00 26.5625 5.3125$ 158.70 Avg. Cost/Day/Driver $ 3,332.00 Monthly average Stockroom Cylinder/Dewar Process (con’t) 11

12 Stockroom Labor Information Hours AverageRateCost Per Day 3 3 28$ 84.00 Average cost per day per stock clerk $ 1,764.00 Monthly average Stockroom Labor Information Hours AverageRateCost Per Day 3 3 28$ 84.00 Average cost per day per stock clerk $ 1,764.00 Monthly average Stockroom Cylinder/Dewar Process (con’t) 12

13 Cylinder Truck Gasoline (Diesel) Consumption Vehicle Transaction Card Hose Date Gallons Average diesel cost Oct. ‘07 thru Apr. ’08 $3.32 E480700490 0027020312200848.5 E480700719 0027020320200860.7 E480701060 0027020403200862.0 E480701357 0027020416200857.0 E480707821 0027021203200740.0 E480708145 0027021213200758.3 E480708462 0027021227200750.0 E480708701 0027020107200839.7 E480708908 0027020115200849.2 E480709271 0027020128200858.3 E480709561 0027020206200847.6 E480709835 0027020215200845.5 E477750340 0036020305200823.6 E477750601 0036020317200829.0 E477750666 0036020319200819.5 E477750978 0036020331200831.0 E477751029 0036020402200836.7 E477751274 0036020414200840.3 E477757116 0036021102200746.9 E477757524 0036021119200750.1 E477758154 0036021213200726.9 E477758187 0036021214200719.4 E477758373 0036021221200741.7 E477758827 0036020111200827.7 E477758828 0036020111200826.2 E477759356 0036020130200835.2 E477759357 0036020130200824.2 E477759946 0036020220200836.0 568.90 Total gallons of diesel 94.80 Avg. gallons of diesel / month $314.79 Avg. cost/month of diesel used in tractors for cylinder delivery $ 14.99 Avg. / day Cylinder Truck Gasoline (Diesel) Consumption Vehicle Transaction Card Hose Date Gallons Average diesel cost Oct. ‘07 thru Apr. ’08 $3.32 E480700490 0027020312200848.5 E480700719 0027020320200860.7 E480701060 0027020403200862.0 E480701357 0027020416200857.0 E480707821 0027021203200740.0 E480708145 0027021213200758.3 E480708462 0027021227200750.0 E480708701 0027020107200839.7 E480708908 0027020115200849.2 E480709271 0027020128200858.3 E480709561 0027020206200847.6 E480709835 0027020215200845.5 E477750340 0036020305200823.6 E477750601 0036020317200829.0 E477750666 0036020319200819.5 E477750978 0036020331200831.0 E477751029 0036020402200836.7 E477751274 0036020414200840.3 E477757116 0036021102200746.9 E477757524 0036021119200750.1 E477758154 0036021213200726.9 E477758187 0036021214200719.4 E477758373 0036021221200741.7 E477758827 0036020111200827.7 E477758828 0036020111200826.2 E477759356 0036020130200835.2 E477759357 0036020130200824.2 E477759946 0036020220200836.0 568.90 Total gallons of diesel 94.80 Avg. gallons of diesel / month $314.79 Avg. cost/month of diesel used in tractors for cylinder delivery $ 14.99 Avg. / day Stockroom Cylinder/Dewar Process (con’t) 13

14 One Year Maintenance Costs – E47968 DateMaintenance Cost 03/14/07Repair lift-gate$ 216.00 07/02/07Repair switch$ 108.00 09/04/07Rewire Switch$ 144.00 10/19/07Inspect brakes$ 76.00 10/26/07Brake repair$1,766.00 11/01/07Inspect & Repair$ 164.00 11/15/07Gate slow$ 57.00 12/11/07Gate repair$ 232.00 01/29/08Hydraulic oil$1,401.00 02/04/08Repair gate hose$ 38.00 02/14/08Replace oil cap$ 56.00 $4,258.00 Total repairs $ 354.80 Monthly average cost to maintain cylinder trailer $ 16.90 Daily average cost to maintain cylinder trailer Cylinder Trailer POCylinder Trailer Cost10-Year Annual Cost 552812 $30,000.00 $3,000.00 $ 250.00 Monthly depreciation of cylinder trailer $ 11.90 Daily depreciation of cylinder trailer $ 604.80 Monthly total cost $ 28.80 Daily total cost One Year Maintenance Costs – E47968 DateMaintenance Cost 03/14/07Repair lift-gate$ 216.00 07/02/07Repair switch$ 108.00 09/04/07Rewire Switch$ 144.00 10/19/07Inspect brakes$ 76.00 10/26/07Brake repair$1,766.00 11/01/07Inspect & Repair$ 164.00 11/15/07Gate slow$ 57.00 12/11/07Gate repair$ 232.00 01/29/08Hydraulic oil$1,401.00 02/04/08Repair gate hose$ 38.00 02/14/08Replace oil cap$ 56.00 $4,258.00 Total repairs $ 354.80 Monthly average cost to maintain cylinder trailer $ 16.90 Daily average cost to maintain cylinder trailer Cylinder Trailer POCylinder Trailer Cost10-Year Annual Cost 552812 $30,000.00 $3,000.00 $ 250.00 Monthly depreciation of cylinder trailer $ 11.90 Daily depreciation of cylinder trailer $ 604.80 Monthly total cost $ 28.80 Daily total cost Stockroom Cylinder/Dewar Process (con’t) 14

15 Cylinder Operation Costs Daily Cylinder Operation CostsMonthly Cylinder Operation Costs Labor Cost Labor Cost (Distribution & Stockroom) $242.70(Distribution & Stockroom) $5,096.00 Fuel Cost $ 14.99 Fuel Cost $ 314.79 Maintenance cost Maintenance cost (including depreciation) $ 28.80 (including depreciation) $ 604.80 Total Daily Cost $286.49 Total Monthly Cost $6,015.59 Cylinder Operation Costs Daily Cylinder Operation CostsMonthly Cylinder Operation Costs Labor Cost Labor Cost (Distribution & Stockroom) $242.70(Distribution & Stockroom) $5,096.00 Fuel Cost $ 14.99 Fuel Cost $ 314.79 Maintenance cost Maintenance cost (including depreciation) $ 28.80 (including depreciation) $ 604.80 Total Daily Cost $286.49 Total Monthly Cost $6,015.59 Stockroom Cylinder/Dewar Process (con’t) 15

16 Stockroom Cylinder/Dewar Process (con’t) What Other Information Did the Vendor Need to Provide Us with?  Monthly delivery charge?  How many delivery stops does the Lab have?  What is the average number of stops per day? This included special gas cylinders.  Vendor quoted $1,250.00 per month to deliver cylinders/dewars on-site and pick up any empties. WIN – WIN for Both the Vendor and Fermilab! What Other Information Did the Vendor Need to Provide Us with?  Monthly delivery charge?  How many delivery stops does the Lab have?  What is the average number of stops per day? This included special gas cylinders.  Vendor quoted $1,250.00 per month to deliver cylinders/dewars on-site and pick up any empties. WIN – WIN for Both the Vendor and Fermilab! 16

17 Stockroom Cylinder/Dewar Process (con’t) How Do We Handle the Process Today?  No change for placing orders with the vendor.  Vendor stops in the morning at our ISS Stockroom Operation to obtain delivery tickets.  Vendor delivers cylinders/dewars on-site and picks up empites.  Vendor returns to stockroom so that cylinders/dewars can be surveyed.  The Lab still has the cylinder truck so that if we have to move a cylinder/dewar from one location to another, our Dispatch Operation can handle this. How Do We Handle the Process Today?  No change for placing orders with the vendor.  Vendor stops in the morning at our ISS Stockroom Operation to obtain delivery tickets.  Vendor delivers cylinders/dewars on-site and picks up empites.  Vendor returns to stockroom so that cylinders/dewars can be surveyed.  The Lab still has the cylinder truck so that if we have to move a cylinder/dewar from one location to another, our Dispatch Operation can handle this. 17


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