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

Physical Inventory Walk Thru

Cycle Count/Physical Inventory Walk Thru

COUNT GROUP- 39 INVENTORY COUNT COUNTED/UNCOUNTED REPORT DATE 9/11/06 TIME PAGE 1 AXTG660 PHYSICAL INVENTORY WALK THRU ** BOTH COUNTED AND UNCOUNTED ITEMS ** OPER MCCUSKERD Physical Inventory Walk Thru ** COUNT 1 ** BATCH/ COUNTED WHSE ITEM NUMBER DESCRIPTION LOCATION LOT FIFO DATE TAG # BY DATE QUANTITY U/M XWH XO COLORANT - NAVY BLUE 6001 DMM 9/11/ KG XWH XO COLORANT - HUNTER GREEN 6002 DMM 9/11/ KG XWH XO COLORANT - SILVER SPARKLE 6003 DMM 9/11/ KG XWH XO COLORANT - DEEP PURPLE 6004 DMM 9/11/ KG XWH XO COLORANT - BRIGHT WHITE 6005 DMM 9/11/ KG XWH X613 CHROME PLATED TAP PLATE 6012 DMM 9/11/ EA XWH X614 1/4" SCREW 6013 DMM 9/11/ EA XWH X615 1/2" SERRATED WASHER 6014 DMM 9/11/ EA XWH X616 RUBBER BASE PAD 6015 DMM 9/11/ EA XWH X620 BASE SUBASSEMBLY 6016 DMM 9/11/ EA XWH X621 CHROME PLATED CARBON 6017 DMM 9/11/ EA XWH X622 CHROME PLATED CARBON 6018 DMM 9/11/ EA XWH X623 CHROME PLATED FASTNER PIN 6019 DMM 9/11/ EA XWH X624 #7 SPRING 6020 DMM 9/11/ EA XWH X625 CHROME PLATED FOLLOWER 6021 DMM 9/11/ EA XWH X630 MECHANICAL INSERT ASSEMBLY 6022 DMM 9/11/06 *** VOID *** EA XWH X632 POLYETHYLENE DRY COMPOUND 6023 DMM 9/11/ GM XWH X633 DISTILLED WATER 6024 DMM 9/11/ ML XWH X634 COLORANT BASE SOLUTION DMM 9/11/ ML XWH X635 RUBBER COMPOUND 6026 DMM 9/11/ KG XWH X650 SIZE 6 SCREENPRINTED BOX 6027 DMM 9/11/ EA XWH 1600 STAPLER, MODEL DMM 9/11/ EA XWH X610 MOLDED PLASTIC TOP RA01 3/10/ DMM 9/11/ EA XWH X610 MOLDED PLASTIC TOP RA01 8/15/ DMM 9/11/ EA XWH X600 MODEL DESK STAPLER (FG) RA01A /06/ DMM 9/11/ EA XWH X600 MODEL DESK STAPLER (FG) RA01A /13/ DMM 9/11/ EA XWH X600 MODEL DESK STAPLER (FG) RA01A /16/ DMM 9/11/ EA XWH X611 MOLDED PLASTIC BASE RA01A1 1/06/ DMM 9/11/ EA REPORT TOTALS: COUNTED ITEMS: 27 UNCOUNTED ITEMS: 0 VOIDED ITEMS: 1

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.

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