Materials Management Cycle Counting And Physical Inventory David McCusker, Senior Consultant CISTECH, Inc.

Materials Management Cycle Counting & Physical Inventory Objectives To incorporates the best capabilities from IM and MPA’s Physical Inventory/Cycle Counting, then expand with Power Architecture technology Provide inventory tag support Provide bar code support Deliver customization capabilities to greatly enhance productivity

Inventory Count Groups

Materials Management Cycle Counting & Physical Inventory Report Options will allow user to tailor the reports to their preference!

Materials Management Cycle Counting & Physical Inventory Ease of Entry! User can either enter tags sequentially by tag number or...

Materials Management Cycle Counting & Physical Inventory Random Count Entry by Item OR by Tag It’s the user’s choice!

Materials Management Cycle Counting & Physical Inventory Count items will list in a ‘spreadsheet’ format Columns may be moved, items can be changed, created, located…all from this screen. You’ll have a ‘window’ of opportunities!

Inventory Count Groups With Subsets Single Warehouse Cycle Count Class Range(s) – –item numbers within a Warehouse – –item classes – –stock locations Transaction Activity By Timed Interval Forced Count Negative On-Hand Balance Include – –Line Locations for REP – –Unapproved Locations for QC

Inventory Count Groups Turnaround Documents – –Both “Count Entry List” and “Inventory Tags” – –Bar Coding is available without PM&C being installed Two Inventory Lockdowns – –Entry On-Hand Quantity Captured at the time the actual count was entered – –Cutoff On-Hand Quantity Captured at the time the count was activated

Inventory Count Groups Speed Data Entry – –Random Entry By Item By Tag By Barcode – –Sequential Entry Warehouse/Location/Item Warehouse/Item/Location Tag Number

Inventory Count Groups Warehouse Highlight Warehouse File Host Jobs Physical Inventory

Inventory Count Groups Inventory Count Entry List

Inventory Count Groups Inventory Tags

Inventory Count Groups Counting can be entered either by Random or Sequential Entry

Inventory Count Groups Random count entry by tag Random count entry by bar-code Random count entry by item

Inventory Count Groups Sequential Entry is the fastest format but requires the items being entered to be in order. Notice the Bypass Key.

Cycle Count Walk Thru Cycle Count Code

Cycle Count Walk Thru Transaction Compare Transaction Activity Count

Cycle Count Walk Thru Next Count Date Last Count Date

Cycle Count Walk Thru Cycle Count Class

Cycle Count Walk Thru Count Accuracy Tolerance Percent

Cycle Count Walk Thru Click on File and then on Host Jobs

Cycle Count Walk Thru

Physical Inventory Walk Thru Click on File and then on Host Jobs

Physical Inventory Walk Thru

Cycle Count/Physical Inventory Walk Thru

COUNT GROUP- 31 COUNT#- 0 INVENTORY COUNT ENTRY LIST DATE 8/06/07 TIME 17:06:04 PAGE 1 AXTG641R Stapler Cycle Count 08/06/07 OPER MCCUSKERD WHSE ITEM NUMBER DESCRIPTION TAG NUMBER COUNTED BY COUNT DATE COUNTED QUANTITY U/M WHSE ITEM NUMBER DESCRIPTION TAG NUMBER COUNTED BY COUNT DATE COUNTED QUANTITY U/M LOCATION LINE BATCH/LOT FIFO DATE ASSIGNED TO LOCATION LINE BATCH/LOT FIFO DATE ASSIGNED TO XWH X600 Stapler, Model ________________ __________ ______________________ EA XWH X600 Stapler, Model ________________ __________ ______________________ EA RA01A1 N 3/24/06 RA01A1 N 3/24/06 XWH X610 Top. Plastic Molded 2 ________________ __________ ______________________ EA XWH X610 Top. Plastic Molded 2 ________________ __________ ______________________ EA RA01A1 N 2/02/06 RA01A1 N 2/02/06 XWH X610 Top. Plastic Molded 3 ________________ __________ ______________________ EA XWH X610 Top. Plastic Molded 3 ________________ __________ ______________________ EA RA01A2 N 3/24/06 RA01A2 N 3/24/06 XWH X610 Top. Plastic Molded 4 ________________ __________ ______________________ EA XWH X610 Top. Plastic Molded 4 ________________ __________ ______________________ EA RA01A3 N 5/22/06 RA01A3 N 5/22/06 XWH X610 Top. Plastic Molded 7 ________________ __________ ______________________ EA XWH X610 Top. Plastic Molded 7 ________________ __________ ______________________ EA RA01A4 N 5/22/06 RA01A4 N 5/22/06 XWH X610 Top. Plastic Molded 10 ________________ __________ ______________________ EA XWH X610 Top. Plastic Molded 10 ________________ __________ ______________________ EA RA01A5 N 5/22/06 RA01A5 N 5/22/06 XWH X611 Base, Plastic Molded 5 ________________ __________ ______________________ EA XWH X611 Base, Plastic Molded 5 ________________ __________ ______________________ EA RA01A3 N 3/24/06 RA01A3 N 3/24/06 XWH X613 Plate, Tap Un-Plated 8 ________________ __________ ______________________ EA XWH X613 Plate, Tap Un-Plated 8 ________________ __________ ______________________ EA RA01A4 N 3/24/06 RA01A4 N 3/24/06 XWH X614 Screw, 1/4" 11 ________________ __________ ______________________ EA XWH X614 Screw, 1/4" 11 ________________ __________ ______________________ EA RA01A5 N 3/24/06 RA01A5 N 3/24/06 XWH X615 Washer, Serrated 1/2" 13 ________________ __________ ______________________ EA XWH X615 Washer, Serrated 1/2" 13 ________________ __________ ______________________ EA RA01A6 N 3/24/06 RA01A6 N 3/24/06 XWH X616 Pad, Rubber Base 14 ________________ __________ ______________________ EA XWH X616 Pad, Rubber Base 14 ________________ __________ ______________________ EA RA01B1 N 3/24/06 RA01B1 N 3/24/06 XWH X620 Base Subassembly 15 ________________ __________ ______________________ EA XWH X620 Base Subassembly 15 ________________ __________ ______________________ EA RA01B2 N 3/24/06 RA01B2 N 3/24/06 XWH X621 Sheet, Steel Carbon Chrome 16 ________________ __________ ______________________ EA XWH X621 Sheet, Steel Carbon Chrome 16 ________________ __________ ______________________ EA RA01B2 N 3/24/06 RA01B2 N 3/24/06 XWH X650 Box, Screenprinted Size 6 12 ________________ __________ ______________________ EA XWH X650 Box, Screenprinted Size 6 12 ________________ __________ ______________________ EA RA01A5 N 5/22/06 RA01A5 N 5/22/06

Cycle Count/Physical Inventory Walk Thru TAG#- 1 DATE 8/06/07 TIME COUNT GROUP- 31 Stapler Cycle Count 08/06/07 ITEM NUMBER- X600 COUNT NUMBER- 0 Stapler, Model 600 WAREHOUSE- XWH Stapler, Model 600 WAREHOUSE- XWH LOCATION BATCH/LOT FIFO DATE RA01A1 3/24/06 COUNTED BY DATE COUNTED QTY COUNTED U/M ____________ ______________ _________________ EA TAG#- 2 DATE 8/06/07 TIME COUNT GROUP- 31 Stapler Cycle Count 08/06/07 ITEM NUMBER- X610 COUNT NUMBER- 0 Top. Plastic Molded WAREHOUSE- XWH Top. Plastic Molded WAREHOUSE- XWH LOCATION BATCH/LOT FIFO DATE RA01A1 2/02/06 COUNTED BY DATE COUNTED QTY COUNTED U/M ____________ ______________ _________________ EA

Cycle Count/Physical Inventory Walk Thru Activate the Count

Cycle Count/Physical Inventory Walk Thru

COUNT GROUP- 32 INVENTORY COUNT COUNTED/UNCOUNTED REPORT DATE 8/06/07 TIME PAGE 1 AXTG660 Warehouse XWh Physical Invento ** UNCOUNTED ITEMS ONLY ** OPER MCCUSKERD Warehouse XWh Physical Inventory 08/06/0 ** SELECTED COUNTS ** BATCH/ COUNTED BATCH/ COUNTED WHSE ITEM NUMBER DESCRIPTION LOCATION LOT FIFO DATE TAG # BY DATE QUANTITY U/M XWH X610 Top. Plastic Molded RA01A1 2/02/06 2 ___________________________________ EA XWH X610 Top. Plastic Molded RA01A2 3/24/06 3 ___________________________________ EA XWH X610 Top. Plastic Molded RA01A3 5/22/06 4 ___________________________________ EA XWH X610 Top. Plastic Molded RA01A4 5/22/06 5 ___________________________________ EA XWH X610 Top. Plastic Molded RA01A5 5/22/06 6 ___________________________________ EA XWH X611 Base, Plastic Molded RA01A3 3/24/06 7 ___________________________________ EA XWH X613 Plate, Tap Un-Plated RA01A4 3/24/06 8 ___________________________________ EA XWH X614 Screw, 1/4" RA01A5 3/24/06 9 ___________________________________ EA XWH X615 Washer, Serrated 1/2" RA01A6 3/24/06 10 ___________________________________ EA XWH X616 Pad, Rubber Base RA01B1 3/24/06 11 ___________________________________ EA XWH X620 Base Subassembly RA01B2 3/24/06 12 ___________________________________ EA XWH X621 Sheet, Steel Carbon Chrome RA01B2 3/24/06 13 ___________________________________ EA XWH X622 Sheet, Steel Carbon Chrome 14 ___________________________________ EA XWH X623 Pin, Fastener Un-Plated 15 ___________________________________ EA XWH X624 Spring, # 7 16 ___________________________________ EA XWH X625 Follower, Un-Plated 17 ___________________________________ EA XWH X630 Insert, Mechanical Assembly 18 ___________________________________ EA XWH X632 Compound, Polyethelene Dry 19 ___________________________________ EA XWH X633 Water, Distilled 20 ___________________________________ EA XWH X634 Solution, Base Colorant 21 ___________________________________ EA XWH X635 Compound, Rubber 22 ___________________________________ EA XWH X650 Box, Screenprinted Size 6 RA01A5 5/22/06 23 ___________________________________ EA XWH X661 Plate, Tap Chrome Plated RA01A3 5/14/06 24 ___________________________________ EA XWH X661 Plate, Tap Chrome Plated RA01A4 5/14/06 25 ___________________________________ EA XWH X662 Pin, Fastener Chrome Plated 26 ___________________________________ EA XWH X663 Follower, Chrome Plated 27 ___________________________________ EA REPORT TOTALS: REPORT TOTALS: COUNTED ITEMS: 0 COUNTED ITEMS: 0 UNCOUNTED ITEMS: 26 UNCOUNTED ITEMS: 26 VOIDED ITEMS: 0 VOIDED ITEMS: 0

COUNT GROUP- 39 INVENTORY COUNT VARIANCE REPORT DATE 9/11/06 TIME PAGE 1 AXTG670 PHYSICAL INVENTORY WALK THRU COMPARE QUANTITY - CUTOFF OPER MCCUSKERD Physical Inventory Walk Thru VARIANCE WHSE ITEM NUMBER DESCRIPTION U/M COUNT COUNTED QTY COMPARE QTY QUANTITY AMOUNT OU LOCATION BATCH/LOT FIFO DATE TOLERANCE UNIT COST XWH XO COLORANT - NAVY BLUE KG 1* Y (W) Item exists in another count group. XWH XO COLORANT - HUNTER GREEN KG 1* Y (W) Item exists in another count group. XWH XO COLORANT - SILVER SPARKLE KG 1* Y (W) Item exists in another count group. XWH XO COLORANT - DEEP PURPLE KG 1* Y (W) Item exists in another count group. XWH XO COLORANT - BRIGHT WHITE KG 1* Y (W) Item exists in another count group. XWH X613 CHROME PLATED TAP PLATE EA 1* Y.0700 (W) Item exists in another count group. XWH X614 1/4" SCREW EA 1* Y.0035 (W) Item exists in another count group. XWH X615 1/2" SERRATED WASHER EA 1* Y.0039 (W) Item exists in another count group. XWH X616 RUBBER BASE PAD EA 1* Y (W) Item exists in another count group. XWH X620 BASE SUBASSEMBLY EA 1* Y (W) Item exists in another count group. XWH X621 CHROME PLATED CARBON EA 1* Y.0310 (W) Item exists in another count group. XWH X622 CHROME PLATED CARBON EA 1* Y.0300 (W) Item exists in another count group. XWH X623 CHROME PLATED FASTNER PIN EA 1* Y.0055 (W) Item exists in another count group.

COUNT GROUP- 32 INVENTORY COUNT VARIANCE REPORT DATE 8/06/07 TIME PAGE 1 AXTG670R1 Warehouse XWh Physical Invento COMPARE QUANTITY - CUTOFF OPER MCCUSKERD Warehouse XWH Physical Inventory 08/06/ VARIANCE VARIANCE WHSE ITEM NUMBER DESCRIPTION U/M COUNT COUNTED QTY COMPARE QTY QUANTITY AMOUNT OUT WHSE ITEM NUMBER DESCRIPTION U/M COUNT COUNTED QTY COMPARE QTY QUANTITY AMOUNT OUT LOCATION BATCH/LOT FIFO DATE TOLERANCE UNIT COST LOCATION BATCH/LOT FIFO DATE TOLERANCE UNIT COST XWH X600 Stapler, Model 600 EA 1* Y XWH X600 Stapler, Model 600 EA 1* Y RA01A1 3/24/06 RA01A1 3/24/06 (W) Item exists in another count group. (W) Item exists in another count group. XWH X610 Top. Plastic Molded EA 1* NO COUNT INFORMATION ENTERED XWH X610 Top. Plastic Molded EA 1* NO COUNT INFORMATION ENTERED RA01A1 2/02/06 RA01A1 2/02/06 (W) Item exists in another count group. (W) Item exists in another count group. (W) Allocations exceed counted quantity. (W) Allocations exceed counted quantity. XWH X610 Top. Plastic Molded EA 1* NO COUNT INFORMATION ENTERED XWH X610 Top. Plastic Molded EA 1* NO COUNT INFORMATION ENTERED RA01A2 3/24/06 RA01A2 3/24/06 (W) Item exists in another count group. (W) Item exists in another count group. XWH X610 Top. Plastic Molded EA 1* NO COUNT INFORMATION ENTERED XWH X610 Top. Plastic Molded EA 1* NO COUNT INFORMATION ENTERED RA01A3 5/22/06 RA01A3 5/22/06 (W) Item exists in another count group. (W) Item exists in another count group. XWH X610 Top. Plastic Molded EA 1* NO COUNT INFORMATION ENTERED XWH X610 Top. Plastic Molded EA 1* NO COUNT INFORMATION ENTERED RA01A4 5/22/06 RA01A4 5/22/06 (W) Item exists in another count group. (W) Item exists in another count group. XWH X610 Top. Plastic Molded EA 1* NO COUNT INFORMATION ENTERED XWH X610 Top. Plastic Molded EA 1* NO COUNT INFORMATION ENTERED RA01A5 5/22/06 RA01A5 5/22/06 (W) Item exists in another count group. (W) Item exists in another count group. XWH X611 Base, Plastic Molded EA 1* NO COUNT INFORMATION ENTERED XWH X611 Base, Plastic Molded EA 1* NO COUNT INFORMATION ENTERED RA01A3 3/24/06 RA01A3 3/24/06 (W) Item exists in another count group. (W) Item exists in another count group. XWH X613 Plate, Tap Un-Plated EA 1* NO COUNT INFORMATION ENTERED XWH X613 Plate, Tap Un-Plated EA 1* NO COUNT INFORMATION ENTERED RA01A4 3/24/ RA01A4 3/24/ (W) Item exists in another count group. (W) Item exists in another count group. XWH X614 Screw, 1/4" EA 1* NO COUNT INFORMATION ENTERED XWH X614 Screw, 1/4" EA 1* NO COUNT INFORMATION ENTERED RA01A5 3/24/ RA01A5 3/24/ (W) Item exists in another count group. (W) Item exists in another count group.

Cycle Count/Physical Inventory Walk Thru

Cycle Count Steps Select Items for Cycle Count Add/Delete Items To/from the Audit Control Group Create Cycle Count Inventory Count Group Generate and Print Inventory Tags Generate and Print Inventory Count Entry List Activate the Next Count Group Work with Inventory Count Groups Work with Inventory Count Items Random Count Entry Sequential Count Entry Generate and Print the Counted/Uncounted Items Report Generate and Print the Variance Report Post Count Adjustment

Physical Inventory Steps Create Physical Inventory Count Group Generate and Print Inventory Tags Generate and Print Inventory Count Entry List Activate the Next Count Group – Required Work with Inventory Count Groups Work with Inventory Count Items Random Count Entry Sequential Count Entry Generate and Print the Counted/Uncounted Items Report Generate and Print the Variance Report Post Count Adjustment

Requirements for maintaining accurate records A good and well documented process for recording all receipts, issues, and dispositions that affect inventory unit balances A well thought out system of inventory locations Record activities which match physical activities Well defined responsibilities and accountabilities for accurate records

Requirements for maintaining accurate records An effective system for maintaining high levels of training and understanding among all employees An effective audit program

Cycle Counting involves: Counting selected items frequently and testing their record accuracy Identifying causes of errors in the records Showing change in the quality of records as time goes on

A Short Way to Get Started Get your team together and read the procedure Make whatever few changes to terminology that are absolutely necessary Select a group of 25 items Make assignments including counters, warehouse supervisor, inventory analyst, etc. Let management know what you are doing Schedule a count tomorrow Learn by doing Post the results!

Physical Inventory Day 1 Identify Count Personal (Counters/Checkers/Entry etc.) Create Physical Inventory Count Group Generate and Print Inventory Count Entry Lists /or Tags Training Day 2 Activate Next Count Count Items (Random/Sequential Count Entry) Generate and Print Inventory Count Reports Post Count Adjustments

Cycle Count Inventory Day 3 Identify Count Personal (Counters/Checkers/Entry etc.) Select and Code Items for Cycle Counting Create Cycle Count Inventory Count Group Generate and Print Inventory Count Entry Lists /or Tags Training Day 4 Activate Next Count Count Items Enter Counts (Random/Sequential Count Entry) Generate and Print Inventory Count Reports Post Count Adjustments

THANK YOU