1 - 114896 : receive stock - learner guide

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Learner Guide

Table of Content

Table of Content..................................................................................................1

Introduction.................................................................................................. 3

1. Introduction...................................................................................................................3

2. About this Unit Standard : Receive Stock......................................................................3

2.1 Unit Standard Alignment...................................................................................................3

2.2 Learning Units....................................................................................................................4

2.3 Learner Support.................................................................................................................5

3. Assessment....................................................................................................................6

3.1 Formative Assessment.......................................................................................................6

3.2 Summative Assessment.....................................................................................................6

4. Navigating the Learner Guide........................................................................................7

4.1 Use of Icons.......................................................................................................................7

5. Learner Administration..................................................................................................8

5.1 Attendance Register...........................................................................................................8

5.2 Learner Registration Form.................................................................................................8

5.3 Programme Evaluation Form.............................................................................................8

Module 1: Receiving Goods............................................................................9

Receiving Goods................................................................................................................... 9

Self Assessment...........................................................................................................................20

Module 2: Prevent Shrinkages and Losses....................................................22

Prevent Shrinkages and Losses...........................................................................................22

Self Assessment...........................................................................................................................38

Module 3: Maintain Stock Balances.............................................................40

Supply Chain.......................................................................................................................40

Stock Flow...........................................................................................................................43

Stock Records..................................................................................................................... 46

UStd : 114896 : Receive StockISO DOC Nr Level 3__________

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Self Assessment 3........................................................................................................................47

Learner Evaluation Form...................................................................................49


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Learner Guide

Introduction

1. Introduction

Welcome to the Unit Standard : Receive Stock – this is an NQF registered unit standard (SAQA Reg. No 114896 ).

The purpose of this unit standard is intended for people who will receive stock in a wholesale or Retail outlet. Persons credited with this unit standard operate in a number of contexts, of which some may be non-routine. They demonstrate the ability to make comparisons and interpret available information.

These persons are able to receive stock in a wholesale/retail organisation, implement security procedures to prevent shrinkage and losses and enhance the efficiency of the supply chain by recording required information on stock being received.

2. About this Unit Standard : Receive Stock

2.1 Unit Standard Alignment

This Unit Standard has 3 Specific Outcomes with related assessment criteria that must be achieved by the learner before credits are awarded.

Specific Outcome Assessment Criteria

Receive goods into the wholesale or retail outlet.

1. Offloaded stock is sorted according to organisational requirements and stock characteristics

2. The stock received is recorded as per organisation's procedures.

3. The stock received is checked against required documentation.

4. All variances between actual stock received and invoiced/ordered stock are identified and resolved according to organisation's procedures.

5. Relevant documentation is completed according to organisation's procedures.


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Prevent shrinkage and losses in the Receiving Area.

1. The concept of shrinkage and how it impacts on the organisation is explained.

2. Ways in which shrinkage and losses occur is explained in relation to the process of receiving stock.

3. Shrinkage and loss prevention measures are implemented in the Receiving Area.

4. Breaches in security are reported to the relevant parties following organisation policies and procedures.

5. Received stock is moved to storage areas to prevent shrinkage and losses following the stock characteristics and the organisation’s policy and procedures.

6. The work area, stationary and equipment meet the organisation’s housekeeping standards.

Maintain stock balances in Receiving Area in order to enhance the efficiency of the supply chain.

1. The impact and functioning of the Supply Chain on the organisation is explained as it is stated the organisation's documents.

2. Stock flow through the organisation/business is explained.

3. Stock records are maintained to enhance the supply chain following organisation's procedures.

2.2 Learning Units

This Programme has four (3) Modules to it:


Receiving GoodsReceiving Goods

Prevent Shrinkages and LossesPrevent Shrinkages and Losses

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Learner Tip:

The following table illustrates the specific outcome and assessment criteria alignment in the 3 Modules.

ModuleSpecific Outcome

Assessment Criteria

Receiving Goods SO 1 AC 1 to 5

Prevent Shrinkages and Losses SO 2 AC 1 to 6

Maintain Stock Balances SO 3 AC 1 to 3

2.3 Learner Support

Please remember that as the programme is outcomes based – this implies the following:

You are responsible for your own learning – make sure you manage your study, practical, workplace and portfolio time responsibly.

Learning activities are learner driven – make sure you use the Learner Guide and Portfolio Guide in the manner intended, and are familiar with the Portfolio requirements.

The Facilitator is there to reasonably assist you during contact, practical and workplace time of this programme – make sure that you have his/her contact details.


Maintain Stock BalancesMaintain Stock Balances

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3. Assessment

Learning Outcomes:

Please refer to the beginning of each module for the learning outcomes that will be covered per module.

3.1 Formative Assessment

In each Learner Guide, several activities are spaced within the content to assist you in understanding the material through application. Please make sure that you complete ALL activities in the Learner Guide, whether it was done during the contact session, or not!

3.2 Summative Assessment

You will be required to complete a Portfolio of Evidence for summative assessment purposes. A portfolio is a collection of different types of evidence relating to the work being assessed. It can include a variety of work samples.

Learner Tip:

DO NOT WAIT until the end – the programme is designed to assist you in evidence preparation as you go along – make use of the opportunity!

Remember:

If it is not documented, it did not happen!

In some evidence, the process you followed is more important than actual outcome / end-product.

Therefore …

Please make sure you complete all activities for your Portfolio.


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4. Navigating the Learner Guide

4.1 Use of Icons

Throughout the learning programme icons are used to focus your attention on important aspects of the learning programme. The following icons are used in this learning programme to direct your attention in using at as a reference guide.

Group Activity / Pair Activity:

You will be required to complete an activity in your group or in pairs with fellow colleagues / programme participants, and provide feedback to the participants in a report back or presentation session.

Individual Activity:

You will be required to complete an activity on your own that relates to the outcomes covered in the module.

Self Reflection:

Reflect on the question(s) asked to identify the relevance of learning outcomes in your own working environment.

Learner Tip:

A useful tip or essential element regarding the concept under discussion is given as a basis to further discussion.

Resources:

Possible sources for further research and study is listed under this icon. Resources may include additional reading, handouts, web-sites, multimedia


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Self Assessment:

You have come to the end of this module – please take the time to review what you have learnt to date, and conduct a self assessment against the learning outcomes of this module

5. Learner Administration

Learner Tip:

The following Learner Administration is critical in assisting your provider in managing this programme effectively.

Please take a moment to familiarize yourself with the requirements.

5.1 Attendance Register

You are required to sign the Attendance Register every day of attendance. Please make sure you sign daily!

5.2 Learner Registration Form

Pease refer to the end of the Learner Guide for the Learner Registration Form. Make sure you complete it using the Key Document, and submit to your Facilitator before the end of the contact session with a copy of your ID document.

Learner Tip/Truths:

Without the Learner Registration and ID Documents we will not be able to register you with Services SETA for certification purposes.

5.3 Programme Evaluation Form

At the end of the Learning Guide is a Learning programme Evaluation Form. Please complete the form before the end of the contact sessions, as this will assist us in improving our service and programme material. Your assistance is highly appreciated!


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Learner Guide

Module 1: Receiving Goods

Learning Outcomes:

The following learning outcomes are covered in this module.

The Learner will have knowledge of how to behave in a business environment

Offloaded stock is sorted according to organisational requirements and stock characteristics

The stock received is recorded as per organisation's procedures.

The stock received is checked against required documentation.

All variances between actual stock received and invoiced/ordered stock are identified and resolved according to organisation's procedures.

Relevant documentation is completed according to organisation's procedures

Receiving Goods

When stock arrives at the organisation, it will more than likely arrive in a truck or in a container, which needs to be off loaded.

Before you start the offloading processing you need to know not only what the stock consists of but also its characteristics.

Learner Tip:

The less the stock is moved the less chance there is of damage to the stock

If the stock requires any form of special attention it will have a label on the outside of the packaging (box, crate, container etc)

Group Activity / Pair Activity 1: Sorting Stock (SO1 AC1)

Your facilitator will divide you into groups of 3 or 4.

Resource 1 : Identify Contents in your Resource guide refers.


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Have a look at each label and answer the questions that follow:

Choose 6 Labels and indicate the type of stock that may carry that label.

Why would you not keep perishable items with hazardous items?

Which stock would you try and off load first? Why?


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Since you would like to move the stock as little as possible, it is essential that you off load and sort it at the same time. Keep like items together.

Try and keep any form of chemicals separate from other goods as this could lead to contamination.

As goods are off loaded and sorted they will then enter into receiving where a record of the stock is recorded.

Systems for receiving and maintaining stock are important to make sure that work is not held up or delayed while essential supplies are being ordered and delivered.

As stock is received in your workplace, checks need to be made so that what is actually paid for or billed is actually received and is in good condition. Other considerations include making sure that stock does not have to be thrown out because it has passed its use by date or has reached the point where it is no longer able to be used. Foodstuffs, film, medicines and chemicals are examples of stocks that have to be used by a certain time. Safety is also important, as some supplies cannot be stored with others – imagine storing poisons with foodstuffs!

Workplaces have systems in place to ensure that stock is:

• available when it is required • fit for use • managed cost effectively and wastage is kept to a minimum.

Every workplace will have differences in how stock is ordered, received and stored. For each of these the organisation will have a policy.

To make sure the flow of goods through a warehouse is smooth and effective, we need a method of recording and tracking goods between all groups involved in the exchange process. We need a way to show that suppliers, purchasers, carriers and distribution centres have all played their part correctly. This is necessary to show exactly what goods have been given to whom, and as evidence of work and receipt of goods on which payments will be based. Individual warehouses will have different systems for recording the movement and storage of goods. These systems can be manual or computerised.


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Delivery note : A delivery note is usually supplied with the goods at the time of delivery. It will state what the supplier has actually delivered to the store. This is probably the most important receipt document of all. Goods delivered are checked against the delivery note to confirm the delivery is correct. The delivery note is used to check the delivery has come to the right place and it contains the correct goods.

Invoice : Invoices are used for the same purpose as the delivery document. However, invoices are used in situations where the distribution centre actually purchases the goods rather than just distributing them for somebody else. Goods received are checked against the amount and description stated on the invoice. The invoice may contain: • a single item or • many items. Invoices are normally sent with the load of goods. Invoices are very important documents as they are used to bill the receiving company. Great care must be taken to make sure that goods received are accurately checked against the invoice.

Like the delivery docket, the invoice is used to check that:

• the delivery is at the right place• the delivery has the right products• the delivery has the right amount of products.

Manifest : Some warehouses are ‘care takers’ of goods, (that is they do not actually purchase the goods). These warehouses receive goods using a document called a manifest. The manifest is similar to an invoice. They are used mostly when importing or exporting goods. The information on a manifest is used to check the delivery and make sure all the goods consigned have arrived. A delivery note, invoice or manifest will be used at different times to check that the goods delivered are the right goods and the right quantity.

Consignment note : A consignment note is used when the delivery is contracted out to a private carrier. They show what is to be receipted and are usually issued by the carrier of the delivery, as a record of what has actually been sent.

In some cases, the goods on a consignment note may be checked with other delivery documents (invoice, manifest etc). A consignment note usually does not give a product description, but will give information like how many boxes, pallets, bags, bales etc. The important sections are:

• pallet control information • number of items • description • receiver • signature of receiver.

Internal packing note : The internal packing note is used to carry out a more detailed check of the stock delivered, once the outer containers, such as cartons, drums, boxes and pallets have been


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broken down and the stock is ready for inspection and then storage. The packing note lists what is actually within each unit delivered. It should give specific information regarding quantity, type, size, specifications, colours, etc.

Group Activity / Pair Activity 2 : Documentation (SO1 AC2)


Resource 2 : Document Samples in your Resource guide refers.

Have a look at each document and answer the questions that follow:

On the delivery note, write down tick the information you think will show the delivery has come to the right place and contains the correct goods.

Using the sample invoice write the information you would use to check three of the points listed above


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Referring to the Manifest, indicate which points are important/relevant when receiving goods.

Electronic data systems : Many warehouses today use special computer systems in the receival of goods. This is called an automated system. Automated systems cut down on paper work and are very quick when it comes to checking and transferring information. The main features of an automated system are:

• consignment notes sent through a computer as proof of delivery • barcodes used on consignment notes • barcoded delivery labels• speedy pricing.

Sometimes with automated receival systems, computers can be used to provide extra information. Daily dispatch details can be looked at for numbers of:

• deliveries • amounts • weights • money charged.

Regardless of whether the process is completed manually or electronically, it is critical to have a record of what was ordered, what was supposed to arrive and for you to check that the stock


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actually arrived. Also, the stock must be checked to ensure that it is fit for use.

For example, in the paper industry, a roll of paper that will have plastic or foil laminated onto it, may arrive without any protective layer as the first hundred meters will be wasted in setting up the machine and getting it running correctly. The edge may be trimmed in the process. The excess acts as appropriate packaging for the roll of paper and is allowed for. If the outer layer is marked, this will not matter as it is trimmed off or wasted.

Individual Activity 1: Checking of stock against documents (SO1 AC3)

Refer to Resource 2 : Sample Documents in your Resource guide.

Which of the documents can be used to check that the stock given is what was ordered.

In many workplaces, the deliverer cannot leave until the receiver provides a signature on the suppliers’ documentation. In most enterprises, the signing of this document indicates that the goods arrived as listed on the consignment notice. In this case, it should not be signed unless the stock has been checked.

When checking stock, the stock received should be counted and checked to see that quantities match that listed on the consignment note. At the same time, the stock should be checked for:

• damage that means stock cannot be used • fitness to use (spoiled, soiled, dinted, cracked, etc.) • use by date (freshness, viability, etc.) • colour, size (stock may be of the correct number but wrong size, colour, etc.).

Where any variations or problems with supplied stock are identified, check workplace procedures that apply to this situation. Options include:

• replacement • credit


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• disposal and credit • selling off as ‘seconds’ • repair and charging to supplier • return to supplier.

In most cases, a phone call and discussion with the supplier can sort out the situation. The relationships between the receiver of the goods, the deliverer and the supplier are important. Good relationships built up over time, through patience, being reasonable and using positive communication skills (listening, questioning, not being aggressive) will mean that when a problem exists, it can be sorted out more easily.

The option taken when there is a problem with supply of ordered stock will depend on factors such as the value of stock, urgency of need for stock, replacement time, whether supplier is internal or external. A common problem with stock ordering is where the supplier cannot deliver the quantity required and places a ‘short order’ – in other words, if 500 items are required and only 250 can be supplied, these will be delivered and the remainder of the order delivered as and when it becomes available. The short fall in the stock received should be noted and reported according to workplace procedures.

Individual Activity 2: Variances (SO1 AC4)

What variances would you look for?

What process would you follow if a variance does occur?


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When a delivery is incorrect or damaged, a damage or shortage report must be completed. This includes when:

• goods arrive damaged • a shortage occurs in delivery • goods fail to arrive at the stipulated time.

There are also correct procedures for cases of wrong and surplus delivery.

Once the stock is received and checked against what was ordered and delivered,the stock must be stored.It is always recommended that there is documented proof of each check.


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Individual Activity 3: Checking Stock (SO1 AC5)

Resource 3 : Checking Form in your resource guide refers.

What other items do you believe you should include on your checklist?

Why is it important to complete a checklist?

Once the checklist is completed by yourself, what should happen to the form?


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6. Conclusion Congratulations! You have now completed the first module of the initial learning for Standard : Receive Stock – this is an NQF registered unit standard (SAQA Reg. No 114896).

You now need to complete the following assessments in your own time.

Self Assessment

Self Assessment 1:

You have come to the end of this module – please take the time to review what you have learnt to date, and conduct a self assessment against the learning outcomes of this module by following the instructions below:

Rate your understanding of each of the outcomes listed below :

Keys : - no understanding

- some idea

- completely comfortable

NO OUTCOMESELF RATING

SO1 AC1

Offloaded stock is sorted according to organisational requirements and stock characteristics

SO1 AC2

The stock received is recorded as per organisation's procedures.

SO1

AC3The stock received is checked against required documentation.

SO1

AC4

All variances between actual stock received and invoiced/ordered stock are identified and resolved according to organisation's procedures.

SO1

AC5

Relevant documentation is completed according to organisation's procedures.


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Complete the mind map below by listing the main point you remember from the module you have just completed.


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Module 2: Prevent Shrinkages and Losses

Learning Outcomes:


The Learner is able to interpret body language in a business

The concept of shrinkage and how it impacts on the organisation is explained.

Ways in which shrinkage and losses occur is explained in relation to the process of receiving stock.

Shrinkage and loss prevention measures are implemented in the Receiving Area.

Breaches in security are reported to the relevant parties following organisation policies and procedures.

Received stock is moved to storage areas to prevent shrinkage and losses following the stock characteristics and the organisation's policy and procedures.

The work area, stationary and equipment meet the organisation's housekeeping standards.

Prevent Shrinkages and Losses

In financial accounting the term inventory shrinkage is the loss of products between point of manufacture or purchase from supplier and point of sale. Sometimes shrinkage may be as high as 15% to 20% of total volume, having a major negative effect on profits.

Individual Activity 4 : The concept of Shrinkage and the Impacts on the organization (SO2 AC1)

Write down (in your own words) what is meant by the concept of shrinkage.

How will this have an impact on the business, and what can the result be?


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The four major sources of inventory shrinkage in the retail industry are:

Employee theft

According to the National Retail Security Survey, the number one source of shrinkage for a retail business is internal theft. Some of the types of employee theft include discount abuse, refund abuse and even credit card abuse. Unfortunately, this is one loss prevention area that generally doesn't receive as much monitoring as customer theft.

Shoplifting Customer theft occurs through concealment, altering or swapping price tags, or transfer from one container to another. While shoplifting remains a smaller inventory loss source than employee theft, stealing by shoppers still costs retailers about R10 billion annually.

Administrative errors

Administrative and paperwork errors make up approximately 15% of shrinkage. Simple pricing mistakes due to markups or markdowns can cost retailers quite a bit.

Vendor fraud

The smallest percentage of shrink is vendor fraud. Retailers report vendor fraud occurs most when outside vendors do stock inventory within the store.

A receiver plays a pivoted role in any retail store. They are the first line of defense in a store through which every shipment has to pass. If the process and the individual lack integrity, it will affect the entire store inventory system. When vendors notice that receivers are ignorant of the merchandise they are receiving, they exploit the situation by either short supplying or charging for goods undelivered.

It is imperative that every retail organisation have trained designated receivers with knowledge of the products they are expected to receive and technology they use.


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Preventing or reducing backdoor receiving shrinkage will require the implementation of the following strategies:

Authorised key controlIt goes without saying that leaving the receiving bay open and unattended is an invitation for shrinkage. Receiving areas when unattended have to be secured and the keys held by authorised staff. Strict control of the receiving area is the most important element in ensuring compliance with laid down policies and procedures. Any personnel not actively engaged in the process should not be allowed access to this area.

Receiver training Many retailers have still not been able to make the correlation between quality of staff allowed to receive goods and backdoor receiving shrinkage. Within numerous organisations there is no trained designated receiver, any staff member can receive and sign for deliveries. A receiver like a cashier literally holds the check book of the organisation, every error they make directly impact on the bottom line. That is why it is so important that receivers are extensively trained and supported with expert level of product knowledge. Much of the vendor fraud in retail stores occur primarily because dishonest vendors realise that the receivers are not properly clued up.

Clearly Written Policies & ProceduresFormally written policies and procedures that are implemented by a motivated and informed workforce will form the fundamentals of an efficient backdoor receiving shrinkage management system. The creation of a standardised system of receiving sends a message to dishonest employees and vendors alike that the organisation considers shrinkage reduction a priority.

TechnologyThe use of advanced technologies have aided the receiving process for most retailers. Technologies such as Direct Store Delivery receiving (DSD) or Radio Frequency Identification (RFID) Merchandise Security tagging have changed the receiving process and made it easier for retailers to track incoming products and increase inventory accuracy. However, the use of technology is only effective if those using it are properly trained to get the most out of the device.

Technological devices used to their full potential can be of enormous benefit to the retail receiving process. Those retailers who harness technology to it maximum have succeeded in reducing their shrinkage level by as much as 9.2% and reduce their accounts payable by 65% and increase overall store profit by up to 3%.


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Backroom Stock ControlExcess stock in the backrooms is a recipe for inventory shrinkage. It is imperative that stock kept in the backroom does not exceed 8-10% of total store inventory. Any losses due to damage, expiration, over-ordering or theft need to be recorded and properly documented.

AuditingAuditing process has to be constantly monitored for integrity and compliance with organisational operating policies and procedures. Auditing should be carried out at least once in every quarter, by both internal and external auditors.

It is clear that backdoor receiving is critical for the success of any retail venture because it is the first line of defense. Get it right and half of the inventory problem is solved. Get it wrong and the entire store inventory remains topsy-turvy for a long time.

Shoplifting (including employee theft and vendor fraud) is widespread in retail establishments, yet accurate data on its extent are not available. Most retail theft is established by audit rather than witnessed, hence it is not clear whether the theft is perpetrated by customers, staff or suppliers.

A 2-3 per cent loss of sales to shoplifting can amount to about 25 per cent loss in profit. For some smaller establishments or those on otherwise tight margins, retail theft not only affects their productivity and competitiveness, but also threatens their economic existence. The costs of this crime are not merely confined to the “front line”. Consumers become the victims, subsidising losses through elevated prices. Ultimately, society as a whole suffers when business viability becomes vulnerable.

Group Activity / Pair Activity 3 : Shrinkage and Losses in Receiving (SO2 AC2 & 3)

Your facilitator will divide you into groups of three or four learners.

In your groups discuss the following and write down your findings.

How can shrinkage and loss occur during eth receiving process


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What measures can be implemented in the receiving are to combat and prevent shrinkage and loss?


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Learner Tip:

It is better to prevent loss than to witness loss and report it.

In the event of an actual or suspected breach of security or other policy you should revert to your organization’s security policy / whistleblowers1 policy, for guidelines of what to do. In most cases it will stipulate that if you suspect breach of security of any nature the following should be done:

Do make a report regardless of how small you think an issue may be.

Do write down notes of specific incidents, conversations and observations (include names, dates, times, locations, etc.). . Only include facts, not emotions

Do be patient: sometimes a fraud investigation can be a lengthy process.

Do not attempt to obtain absolute proof of any improper conduct before making a report.

Do not attempt any investigation yourself.

Do not interview the suspect or any witnesses.

Do not make accusations.

Do not start rumours.

Resources:

Look in your Resource Guide at Resource 4 : Incident/Suspicions reporting Form

This is an example of the type of form you may be required to complete, depending on your organization’s policy.

Individual Activity 5: Breaches in Security

Your colleague and yourself have just completed offloading a truck. As you were offloading you completed the Checklist to find all is in order, signed acceptance of the goods and sent the truck drive on his way. Before moving the stock into storage you decide to break for tea. As you and your colleague are the only two people in receiving, you never take your breaks together. On return you start to move the goods to storage when you noticed a box has been partially opened.

Complete the Incident report below.

1 “Whistleblower” is a general term which refers to an employee who notifies management of an activity or event which that person genuinely believes may be fraudulent, dishonest or clearly violates the law or company policy


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As mentioned earlier, security in receiving is of utmost importance as this is your first line of defence.


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Once the stock is received and checked against what was ordered and delivered, the stock must be stored. A number of factors will have been considered in the design of the storage area:

• people safety when storage area is entered • available space • shape of containers or stock (drums, on pallets, cartons, racks or shelves, etc.) • maintenance of condition of stock (protection from water, dirt, sunlight, physical damage) • security of stock • cost of storage equipment (shelving, racks, trays, other) • availability of mechanical aids for moving stock (forklift, hand trolleys, carts, etc.) • minimising distance and number of times that stock is moved • stock rotation to ensure older stock is used first and before use by date • whether stock is itself hazardous (separation of some chemicals from other chemicals that could cause ignition or explosion; radiation; flammability and flash point; biological material that is potentially or actually harmful to humans; other dangerous goods classifications) • other issues such as those faced where living material is stored or where refrigeration is required.

When storing stock, your aim should be to complete the process of storage as quickly as possible and in a safe manner. Associated with this task is the need for accuracy in placing stock in locations that follow the stock storage system, and accuracy in recording what you have stored.

Resources:

Look in your Resource guide at Resource 5 : Stock Storage.

This form will help you keep track of how items of a specific nature are stored and where they are stored.

Safety is the primary concern of all enterprises and applies to stock storage. Safety issues are relevant to:

• yourself and other team members involved in stock storage • team members passing through the storage area • team members accessing stock from storage.

When storing stock, you may be required to make use of Personal Protective Equipment (PPE) to ensure that you do not injure or harm yourself or others. This would be detailed in your organization’s policies.

When moving stock it is important to know the characteristics of the stock and any special requirements in its handling.


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Resources:

Look in your Resource guide at Resource 6 : Stock Labelling

These are some labels you may come into contact with, which will guide you on how to handle the stock.

Some goods move faster through the system than others and must therefore be stored where easily accessible.

To assist in deciding where to move stock, and how to move it, it is recommended that you ask the following questions:

• What type of stock is it?

• How fast does it move?

• Is it dangerous?

• Is it large or small?

• Is it easy to stack?

• Does it require cold storage?

Sometimes in more advanced warehouse systems, the computer system automatically slots new goods into storage based on the criteria above and gives instructions on how it is to be moved.

Resources:

Refer to Resource 7: Moving Equipment in your Resource Guide.

Using the correct equipment to move stock is of the essence to prevent shrinkage and losses. If you use the incorrect equipment, not only could it result in injury to yourself and others but may also damage the stock.

Group Activity / Pair Activity 4: Moving Stock (SO2 AC5)


Write down what :

Labels you will find on each of the items listed

How you will move them

How you will pack & store them


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Parafin:

T-Shirts:

Frozen Chickens:

Upright Fridge / Freezers

Efficient production and a good working environment are complementary. The elimination of inefficiencies and accident hazards caused by unfavourable conditions in and about the workplace is essential in getting the job done properly and safely. The attention to these important details—which may be overlooked when management’s attention is concentrated upon such amenities as good cloakrooms, canteens, rest rooms, recreational facilities, etc.—is widely referred to as “good housekeeping”. Good housekeeping involves every phase of industrial operations and should apply throughout the entire premises, indoors and out. It is more than mere cleanliness. It requires orderly conditions, the avoidance of congestion, and attention to such details as an orderly layout of the whole workplace, the marking of aisles, adequate storage arrangements, and suitable provision for cleaning and maintenance.


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A clean, well-ordered, attractive work environment sets the tone of your establishment. It encourages tidy work habits in employees. It helps reduce fatigue. It promotes good worker-management relations. It also gives a lift to morale, which is reflected in the quality of production and overall efficiency. Good housekeeping is also a good advertisement for your company. Customers and clients have more confidence in an organisation when they we work being carried out efficiently in clean, pleasant, well ordered surroundings. There’s an even more important reason why good housekeeping matters — it makes the undertaking a safer place to work in.

It is a vital factor in preventing accidents. The great majority of all work accidents are caused during the handling of goods or materials, and by people falling, being hit by falling objects, or striking against objects in the workplace. All these causes can be reduced by good housekeeping practices—in fact, good housekeeping is the only cure for hundreds of accidents that occur. Here are some kinds of accidents commonly caused by bad housekeeping:

• Tripping over loose objects on floors, stairs and platforms. • Articles dropping from above. • Slipping on greasy, wet or dirty surfaces. • Striking against projecting, poorly stacked, or misplaced material. • Tearing the hands or other parts of the body on projecting nails, wire, steel strapping on bales or crates, etc.

Typical examples of poor housekeeping that lead to these accidents are:

• Excessive material, waste or chips in the working area. • Congested aisles. • Tools left on machines. • Waste containers overflowing. • Lockers and workrooms in disorder. • Acids in open containers. • Broken glass. • Electric leads or air lines across aisles. • Dirty light fittings, windows and skylights.

Where housekeeping is bad, fire is a constant hazard. It can be caused by many housekeeping problems—such as oil-soaked rags and clothing igniting from spontaneous combustion; dust collectors not being properly or frequently cleaned; or piles of paper and other packing materials being allowed to accumulate. Poor housekeeping can also lead to infestation by pests such as rodents and cockroaches and create serious health risks. The following are the basic elements of a good housekeeping campaign that need attention:

Aisles—Wide enough for traffic movements, marked off by floor lines from work positions and storage areas.

Space—Sufficient room for the individual to work.


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Storage—Adequate and convenient space for materials and tools.

Materials Handling—Layout planned for materials flow, with efficient methods and equipment.

Ventilation—Good general ventilation plus local exhaust ventilation to remove air contaminants at the source.

Floors and Walls—Of construction and materials that are easy to keep clean and in good repair.

Lighting—Well-distributed artificial light and effective use of available daylight.

Amenities—Clean, up-to-date washrooms and lockers for clothing. A clean, inviting lunch room for employees to eat their meals.

Waste Removal—Adequate facilities to prevent congestion and disorder. Let us look at some of these elements in detail.

KEEP AISLES CLEAR: Aisle space should be reserved for the movement of personnel, products and materials. It should be kept clean and clear and should never be used for “bottleneck” or “overflow’’ storage. This also applies to passageways and emergency exits. Blind corners should be eliminated or be adequately protected by warning signs. Aisle boundary markings should be drawn to show clearly the space which has been reserved for traffic. Markings should be sufficiently wide (say a minimum of 30 mm) and of a colour to make them clearly visible. Paint or durable plastic strips can be used.

IMPROVE STORAGE FACILITIES: Tidiness and order are essential in overcoming storage problems, both in storerooms and in the yard. Good storage utilises air space instead of floor space, and also saves time-wasting delays. It’s important to prevent stores and scraps accumulating on the floor and around machines. Never keep more stores and materials than necessary near machines and provide proper facilities (such as bins, shelves, boxes, racks, etc.) in which to store them.

KEEP FLOORS CLEAN: Every year thousands of work injuries are caused by people falling. Floor conditions are responsible for many of these accidents. When floors are given the right treatment they are much easier to keep clean and hygienic. Spilt oil and other liquids should be cleaned up at once. Chips, shavings, dust, and similar wastes should never be allowed to accumulate. They should be removed frequently, or better still, be suitably trapped before they reach the floor.

PAINT THE WALLS: Paint is one of the cheapest means of renovating walls, and a fresh coat of paint can give a boost to morale. Light-coloured walls reflect light. Dirty or dark-coloured walls absorb light. Dirty walls have a depressing effect and encourage dirty habits and sloppy attitudes. Choose suitable colours to paint walls, ceilings and working surfaces. See that the paintwork is cleaned down periodically. Colour can be harnessed to assist with safety. For example it can be used to warn of physical hazards and to mark obstructions such as pillars.


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Painting handrails, machine guards and other safety equipment renders them distinctive and also prevents rust. Colour can be used to highlight the hazardous parts of machinery but it can never substitute for a needed guard.

MAINTAIN THE LIGHT FITTINGS: Attention to light fittings should be an integral part of any good housekeeping programme. Dirty lamps and shades, and lamps whose output has deteriorated with use, deprive employees of essential light. It’s been found that lighting efficiency may be improved by 20 to 30 percent simply by cleaning the lamps and reflectors.

CLEAN THE WINDOWS: Clean windows let in light; dirty ones keep it out. Insufficient light causes eye strain and leads to accidents because employees are unable to see properly. Ensure that windows are not blocked by stacked materials, equipment or articles on the ledges.

DISPOSE OF SCRAP AND PREVENT SPILLAGE: It’s a common practice to let the floor catch all the waste and then spend time and energy cleaning it up. It is obviously better to provide convenient containers for scrap and waste and educate employees to use them. Safety will benefit, expense will be saved, and the factory will be a better place in which to work. Oily floors are a common accident and fire hazard. Splash guards and drip pans should be installed wherever oil spills or drips may occur. Prevent accidents by keeping oil and grease off the floor.

GET RID OF DUST AND DIRT: In some jobs, dust, dirt, chips, etc., are unavoidable. If they can’t be collected as part of the process (e.g. by enclosure and exhaust methods) you need a way to clean them up. Vacuum cleaners are suitable for removing light dust and dirt. Industrial models have special fittings for cleaning walls, ceilings, ledges, machinery, and other hard-to-reach places where dust and dirt collect. If light dust is removed by sweeping, floors should be dampened first rather than swept dry. Oiling floors occasionally with a light oil helps to lay the dust but take care that slipping hazards do not occur. Remember, it is not only floors that need sweeping. Dust and grime also collect on ledges, shelves, piping, conduits, lamps, reflectors, windows, cupboards, lockers, and so on—and all these places need attention.

MAINTAIN A HIGH STANDARD IN MEAL ROOMS, REST ROOMS, ETC: No housekeeping programme should ignore the facilities provided for meals, rest and sanitation, where cleanliness is essential for walls, floors, and fixtures. A light-coloured paint can work wonders in these places and set a standard to which employees will try to conform. Soap and towels should be renewed regularly and wash basins properly cleaned.

KEEP TOOLS TIDY: Tool housekeeping is very important, whether in the tool room, on the rack, out in the yard, or on the bench. Suitable fixtures for tools are required to provide orderly arrangement, both in the tool room and near the work bench, and a regular system of inspecting, cleaning, and repairing is an essential part of any programme.

LOOK AFTER YOUR FIRST AID GEAR: First aid facilities and equipment should be kept under spotlessly clean conditions and fully stocked so that they are always ready in the event of accidents or illness.


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INSPECT FIRE-CONTROL EQUIPMENT: It is essential to ensure that all fire-fighting equipment such as extinguishers and fire hoses is regularly inspected and kept in good working order. Fire protection facilities — fire doors and exits, automatic alarms, etc.— should be in good working order. Doors and exits should always be kept clear of obstructions.

ATTEND REGULARLY TO MAINTENANCE: Perhaps the most important element of good housekeeping is the attention paid to maintenance of buildings and equipment. If something gets broken or damaged it should be replaced or fixed as quickly as possible (e.g., defective ladders, broken handrails, steps, etc.). Apart from the possibility of causing accidents, a workplace can take on a very neglected appearance if broken windows, damaged doors, defective plumbing, leaking gutters, broken floor surfaces and the like are allowed to remain in that condition. Employees may take the hint in a neglectful attitude to their jobs. A good maintenance programme will make provision for the inspection, lubrication, upkeep and repair of tools, equipment, machines and processes.

ASSIGN RESPONSIBILITY FOR CLEANING: Where practicable, the cleaning of the workplace should be the responsibility of a special cleaning staff and not an additional job for employees engaged in production. Where this is not possible, adequate time during working hours should be allowed for cleaning up to be done. Responsibility should be clearly assigned as to who is to do the cleaning and what area is to be cleaned. If this is not done, out-of-theway places such as shelves, yards, small buildings, sheds, cellars, basements, and boiler rooms are overlooked until they get into a deplorable state.

PREPARE A CHECK LIST: A sound method to ensure that housekeeping is done is for management to prepare a check list to suit the requirements of the workplace.

Learner Tip:

Housekeeping does not happen on its own, it requires Human Intervention!

Individual Activity 6: Housekeeping (SO2 AC6)

What will be the impact if there is poor housekeeping?


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What documentation is available within the organisation to advise on good housekeeping?

How can you maintain and ensure your work area, stationary and equipment meet the organisation’s standards


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6. Conclusion Congratulations! You have now completed the second module of the initial learning for Standard : Receive Stock – this is an NQF registered unit standard (SAQA Reg. No 114896).


Self Assessment

Self Assessment 2:




- some idea



SO2 AC1

The concept of shrinkage and how it impacts on the organisation is explained.

SO2 AC2

Ways in which shrinkage and losses occur is explained in relation to the process of receiving stock.

SO2 AC3

Shrinkage and loss prevention measures are implemented in the Receiving Area.

SO2 AC4

Breaches in security are reported to the relevant parties following organisation policies and procedures.

SO2 AC5

Received stock is moved to storage areas to prevent shrinkage and losses following the stock characteristics and the organisation's policy and procedures.

SO2 AC6

The work area, stationary and equipment meet the organisation's housekeeping standards.


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Learner Guide

Module 3: Maintain Stock Balances

Learning Outcomes:


The Learner will be able to meet people in a business setting

The impact and functioning of the Supply Chain on the organisation is explained as it is stated the organisation's documents.

Stock flow through the organisation/business is explained.

Stock records are maintained to enhance the supply chain following organisation's procedures.

Supply Chain

A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm.

Resources:

Refer to Resource 9 : Typical Supply Chain in your resource guide.

This is an example of a very simple supply chain for a single product, where raw material is procured from vendors, transformed into finished goods in a single step, and then transported to distribution centres, and ultimately, customers.

Each organization will also have its own internal supply chain.

Resources:

Refer to Resource 10 : Internal Supply Chain in your resource guide.

This example shows how various departments complete the Supply Chain. It is important to note that each organization is different.


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The purpose of the supply chain is to have the right products, in the right quantities, at the right place, at the right time, at minimal cost and in the most efficient way.

This therefore requires a great deal of flexibility, dependence and reliance on all components of the supply chain.

Example:

A product needs to be manufactured and then exported to a client in the UK.

What if:

Supplier of raw materials is short of supplies or is delayed in delivering them?

The finance department has not paid a supplier on a previous invoice so they will not deliver?

Eskom reintroduces load shedding which interferes with the manufacturing of the product?

Product is produced but the Road & Shipping Freight industry goes on strike?

On each of these the impact will be disastrous, and could ultimately result in loss of business.

Group Activity / Pair Activity 5 : Supply Chain (SO3 AC1)


In your groups have a look at each of the above and write down the impact each of them will have on the organisation.


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Stock Flow

Wikipedia2 defines stock as being a variable that is measured at one specific time, and represents a quantity existing at that point in time (say, December 31, 2004), which may have accumulated in the past. A flow variable is measured over an interval of time. Therefore a flow would be measured per unit of time (say a year).

Thus, a stock refers to the value of an asset at a balance date (or point in time), while a flow refers to the total value of transactions (sales or purchases, incomes or expenditures) during an accounting period. If the flow value of an economic activity is divided by the average stock value during an accounting period, we obtain a measure of the number of turnovers (or rotations) of a stock in that accounting period. Some accounting entries are normally always represented as a flow (e.g. profit or income), while others may be represented both as a stock or as a flow (e.g. capital).

The above can be clearly understood in the tables below.

Accounting, finance, etc.

"Stock"Possible units of stock

"Inflow(s)" "Outflow(s)"Possible units of flow

bank balance eurosdepositsinterest

withdrawals euros per month

inventory of lumber board feet incoming lumber outgoing lumberboard feet per week

housing stock dollarshousing investment

housing depreciation

dollars per year

equity shareholdings

shares (of 'stock')purchases of shares

sales of shares shares per month

Other contexts

"Stock"Possible units of stock

"Inflow(s)" "Outflow(s)" Possible units of flow

CO2 in atmosphere tons tons emitted tons sequestered tons per day

guests in a hotel persons guests arriving guests leaving persons per day

2 http://en.wikipedia.org/wiki/Stock_and_flow


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population personsbirthsimmigration

deathsemigration

persons per year

water in bathtub liters water pouring in water draining out liters per second

waste in disposal site tons dumping waste decay of waste tons per week

fuel tank gallons refueling fuel consumption gallons per month

Stock Flow can also refer to the “travel” or “process” that stock follows from start to finish.

Group Activity / Pair Activity 6 : Stock Flow

Resource 10 : Stock Flow Process in your resource guide refers. (SO3 AC2 &3)

Write down the process stock goes through from the time the delivery truck arrives to the time stock is despatched from Storage.

Draw a flow diagram of the above, including documentation that is involved.


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Stock Records

To enhance the supply chain detailed records of all movements, checks, stock control & count must be kept. Maintaining stock records can be done in two ways, namely manually or electronically.

Manual systems, require all paperwork to follow the stock. Generally this is done by scanning in the documentation and saving it at a central point on the computer network for all to see and access.

Electronic systems are a more reliable and valuable way to main records, as it requires little human intervention thus leading to less mistakes with manual counts, administrative errors.


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6. Conclusion

Congratulations! You have now completed the third module of the initial learning for Standard : Receive Stock – this is an NQF registered unit standard (SAQA Reg. No 114896).


Self Assessment 3

Self Assessment:




- some idea



SO 3

AC 1

The impact and functioning of the Supply Chain on the organisation is explained as it is stated the organisation's documents.

SO 3

AC 2Stock flow through the organisation/business is explained.

SO 3

AC 3

Stock records are maintained to enhance the supply chain following organisation's procedures.


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Learner Evaluation Form

Learning Programme Name

Facilitator Name

Learner name (Optional)

Dates of Facilitation

Employer / Work site Date of Evaluation

Learner Tip:

Please complete the Evaluation Form as thoroughly as you are able to, in order for us to continuously improve our training quality!

The purpose of the Evaluation Form is to evaluate the following:

Logistics and Support

Facilitation

Training Material

Assessment

Your honest and detailed input is therefore of great value to us, and we appreciate your assistance in completing this evaluation form!


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A Logistics and Support Evaluation

No Criteria / Question

Poor

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1 Was communication regarding attendance of the programme efficient and effective?

2 Was the Programme Coordinator helpful and efficient?

3 Was the training equipment and material used effective and prepared?

4 Was the training venue conducive to learning (set-up for convenience of learners, comfortable in terms of temperature, etc.)?

Additional Comments on Logistics and Support


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B Facilitator Evaluation


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1 The Facilitator was prepared and knowledgeable on the subject of the programme

2 The Facilitator encouraged learner participation and input

3 The Facilitator made use of a variety of methods, exercises, activities and discussions

4 The Facilitator used the material in a structured and effective manner

5 The Facilitator was understandable, approachable and respectful of the learners

6 The Facilitator was punctual and kept to the schedule

Additional Comments on Facilitation


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C Learning Programme Evaluation


Poor

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1 2 3 4 5

1 The learning outcomes of the programme are relevant and suitable.

2 The content of the programme was relevant and suitable for the target group.

3 The length of the facilitation was suitable for the programme.

4 The learning material assisted in learning new knowledge and skills to apply in a practical manner.

5 The Learning Material was free from spelling and grammar errors

6 Handouts and Exercises are clear, concise and relevant to the outcomes and content.

7 Learning material is generally of a high standard, and user friendly

Additional Comments on Learning Programme


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D Assessment Evaluation


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1 A clear overview provided of the assessment requirements of the programme was provided

2 The assessment process and time lines were clearly explained

3 All assessment activities and activities were discussed

Additional Comments on Assessment
