materials management cycle counting and physical inventory david mccusker, senior consultant...

Materials ManagementCycle Counting

AndPhysical Inventory

David McCusker, Senior ConsultantCISTECH, Inc.

[email protected]

Materials ManagementMaterials ManagementCycle Counting & Physical InventoryCycle Counting & Physical Inventory

ObjectivesTo incorporates the best capabilities

from IM and MPA’s Physical Inventory/Cycle Counting, then expand with Power Architecture technology

Provide inventory tag supportProvide bar code supportDeliver customization capabilities to

greatly enhance productivity

Inventory Count Groups


Report Options

will allow user to tailor the

reports to their preference!


Ease of Entry!

User can either enter tags sequentially by

tag number

or...


Random Count Entry by Item

OR by Tag

It’s the user’s choice!


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


• 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


• Speed Data Entry– Random Entry

• By Item

• By Tag

• By Barcode

– Sequential Entry• Warehouse/Location/Item

• Warehouse/Item/Location

• Tag Number


• Warehouse

• Highlight Warehouse

• File

• Host Jobs

• Physical Inventory


• Inventory Count Entry List


• Inventory Tags


Counting can be entered either by Random or Sequential Entry


• Random count entry by tag

• Random count entry by bar-code

• Random count entry by item


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 CodeCycle Count Code


Transaction CompareTransaction CompareTransaction Activity CountTransaction Activity Count


Next Count DateNext Count DateLast Count DateLast Count Date


Cycle Count ClassCycle Count Class


Count Accuracy Count Accuracy Tolerance PercentTolerance Percent


Click on Click on FileFile and then on and then on Host JobsHost Jobs

Physical Inventory Walk Thru

Click on Click on FileFile and then on and then on Host JobsHost Jobs

Physical Inventory Walk Thru

Cycle Count/Physical Inventory Walk Thru

Cycle Count/Physical Inventory Walk ThruCOUNT GROUP- 31 COUNT#- 0 INVENTORY COUNT ENTRY LIST DATE 8/06/07 TIME 17:06:04 PAGE 1 AXTG641RCOUNT GROUP- 31 COUNT#- 0 INVENTORY COUNT ENTRY LIST DATE 8/06/07 TIME 17:06:04 PAGE 1 AXTG641RStapler Cycle Count 08/06/07 OPER MCCUSKERD 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 600 1 ________________ __________ ______________________ EA XWH X600 Stapler, Model 600 1 ________________ __________ ______________________ 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 ________________ __________ ______________________ EAXWH X610 Top. Plastic Molded 4 ________________ __________ ______________________ EA RA01A3 N 5/22/06 RA01A3 N 5/22/06 XWH X610 Top. Plastic Molded 7 ________________ __________ ______________________ EAXWH X610 Top. Plastic Molded 7 ________________ __________ ______________________ EA RA01A4 N 5/22/06 RA01A4 N 5/22/06 XWH X610 Top. Plastic Molded 10 ________________ __________ ______________________ EAXWH X610 Top. Plastic Molded 10 ________________ __________ ______________________ EA RA01A5 N 5/22/06 RA01A5 N 5/22/06 XWH X611 Base, Plastic Molded 5 ________________ __________ ______________________ EAXWH X611 Base, Plastic Molded 5 ________________ __________ ______________________ EA RA01A3 N 3/24/06 RA01A3 N 3/24/06 XWH X613 Plate, Tap Un-Plated 8 ________________ __________ ______________________ EAXWH 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 ________________ __________ ______________________ EAXWH X650 Box, Screenprinted Size 6 12 ________________ __________ ______________________ EA RA01A5 N 5/22/06 RA01A5 N 5/22/06


TAG#- 1 DATE 8/06/07 TIME 17.06.04TAG#- 1 DATE 8/06/07 TIME 17.06.04COUNT GROUP- 31 Stapler Cycle Count 08/06/07 COUNT GROUP- 31 Stapler Cycle Count 08/06/07 ITEM NUMBER- X600 COUNT NUMBER- 0ITEM NUMBER- X600 COUNT NUMBER- 0 Stapler, Model 600 WAREHOUSE- XWHStapler, Model 600 WAREHOUSE- XWHLOCATION BATCH/LOT FIFO DATE LOCATION BATCH/LOT FIFO DATE RA01A1 3/24/06 RA01A1 3/24/06 COUNTED BY DATE COUNTED QTY COUNTED U/MCOUNTED BY DATE COUNTED QTY COUNTED U/M____________ ______________ _________________ EA____________ ______________ _________________ EA

TAG#- 2 DATE 8/06/07 TIME 17.06.04TAG#- 2 DATE 8/06/07 TIME 17.06.04COUNT GROUP- 31 Stapler Cycle Count 08/06/07 COUNT GROUP- 31 Stapler Cycle Count 08/06/07 ITEM NUMBER- X610 COUNT NUMBER- 0ITEM NUMBER- X610 COUNT NUMBER- 0 Top. Plastic Molded WAREHOUSE- XWHTop. Plastic Molded WAREHOUSE- XWHLOCATION BATCH/LOT FIFO DATE LOCATION BATCH/LOT FIFO DATE RA01A1 2/02/06 RA01A1 2/02/06 COUNTED BY DATE COUNTED QTY COUNTED U/MCOUNTED BY DATE COUNTED QTY COUNTED U/M____________ ______________ _________________ EA____________ ______________ _________________ EA


Activate the CountActivate the Count

COUNT GROUP- 32 INVENTORY COUNT COUNTED/UNCOUNTED REPORT DATE 8/06/07 TIME 19.20.54 PAGE 1 AXTG660COUNT GROUP- 32 INVENTORY COUNT COUNTED/UNCOUNTED REPORT DATE 8/06/07 TIME 19.20.54 PAGE 1 AXTG660Warehouse XWh Physical Invento ** UNCOUNTED ITEMS ONLY ** OPER MCCUSKERD Warehouse XWh Physical Invento ** UNCOUNTED ITEMS ONLY ** OPER MCCUSKERD Warehouse XWh Physical Inventory 08/06/0 ** SELECTED COUNTS ** 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/MWHSE ITEM NUMBER DESCRIPTION LOCATION LOT FIFO DATE TAG # BY DATE QUANTITY U/MXWH X610 Top. Plastic Molded RA01A1 2/02/06 2 ___________________________________ EAXWH X610 Top. Plastic Molded RA01A1 2/02/06 2 ___________________________________ EAXWH X610 Top. Plastic Molded RA01A2 3/24/06 3 ___________________________________ EAXWH X610 Top. Plastic Molded RA01A2 3/24/06 3 ___________________________________ EAXWH X610 Top. Plastic Molded RA01A3 5/22/06 4 ___________________________________ EAXWH X610 Top. Plastic Molded RA01A3 5/22/06 4 ___________________________________ EAXWH X610 Top. Plastic Molded RA01A4 5/22/06 5 ___________________________________ EAXWH X610 Top. Plastic Molded RA01A4 5/22/06 5 ___________________________________ EAXWH X610 Top. Plastic Molded RA01A5 5/22/06 6 ___________________________________ EAXWH X610 Top. Plastic Molded RA01A5 5/22/06 6 ___________________________________ EAXWH X611 Base, Plastic Molded RA01A3 3/24/06 7 ___________________________________ EAXWH X611 Base, Plastic Molded RA01A3 3/24/06 7 ___________________________________ EAXWH X613 Plate, Tap Un-Plated RA01A4 3/24/06 8 ___________________________________ EAXWH X613 Plate, Tap Un-Plated RA01A4 3/24/06 8 ___________________________________ EAXWH X614 Screw, 1/4" RA01A5 3/24/06 9 ___________________________________ EAXWH X614 Screw, 1/4" RA01A5 3/24/06 9 ___________________________________ EAXWH X615 Washer, Serrated 1/2" RA01A6 3/24/06 10 ___________________________________ EAXWH X615 Washer, Serrated 1/2" RA01A6 3/24/06 10 ___________________________________ EAXWH X616 Pad, Rubber Base RA01B1 3/24/06 11 ___________________________________ EAXWH X616 Pad, Rubber Base RA01B1 3/24/06 11 ___________________________________ EAXWH X620 Base Subassembly RA01B2 3/24/06 12 ___________________________________ EAXWH X620 Base Subassembly RA01B2 3/24/06 12 ___________________________________ EAXWH X621 Sheet, Steel Carbon Chrome RA01B2 3/24/06 13 ___________________________________ EAXWH X621 Sheet, Steel Carbon Chrome RA01B2 3/24/06 13 ___________________________________ EAXWH X622 Sheet, Steel Carbon Chrome 14 ___________________________________ EAXWH X622 Sheet, Steel Carbon Chrome 14 ___________________________________ EAXWH X623 Pin, Fastener Un-Plated 15 ___________________________________ EAXWH X623 Pin, Fastener Un-Plated 15 ___________________________________ EAXWH X624 Spring, # 7 16 ___________________________________ EAXWH X624 Spring, # 7 16 ___________________________________ EAXWH X625 Follower, Un-Plated 17 ___________________________________ EAXWH X625 Follower, Un-Plated 17 ___________________________________ EAXWH X630 Insert, Mechanical Assembly 18 ___________________________________ EAXWH X630 Insert, Mechanical Assembly 18 ___________________________________ EAXWH X632 Compound, Polyethelene Dry 19 ___________________________________ EAXWH X632 Compound, Polyethelene Dry 19 ___________________________________ EAXWH X633 Water, Distilled 20 ___________________________________ EAXWH X633 Water, Distilled 20 ___________________________________ EAXWH X634 Solution, Base Colorant 21 ___________________________________ EAXWH X634 Solution, Base Colorant 21 ___________________________________ EAXWH X635 Compound, Rubber 22 ___________________________________ EAXWH X635 Compound, Rubber 22 ___________________________________ EAXWH X650 Box, Screenprinted Size 6 RA01A5 5/22/06 23 ___________________________________ EAXWH X650 Box, Screenprinted Size 6 RA01A5 5/22/06 23 ___________________________________ EAXWH X661 Plate, Tap Chrome Plated RA01A3 5/14/06 24 ___________________________________ EAXWH X661 Plate, Tap Chrome Plated RA01A3 5/14/06 24 ___________________________________ EAXWH X661 Plate, Tap Chrome Plated RA01A4 5/14/06 25 ___________________________________ EAXWH X661 Plate, Tap Chrome Plated RA01A4 5/14/06 25 ___________________________________ EAXWH X662 Pin, Fastener Chrome Plated 26 ___________________________________ EAXWH X662 Pin, Fastener Chrome Plated 26 ___________________________________ EAXWH X663 Follower, Chrome Plated 27 ___________________________________ EAXWH 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 20.02.45 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 XO6000101 COLORANT - NAVY BLUE KG 1* 2000.000 2000.000 21000.0000 Y • 10.5000 • (W) Item exists in another count group. • XWH XO6000102 COLORANT - HUNTER GREEN KG 1* 3000.000 3000.000 31500.0000 Y • 10.5000 • (W) Item exists in another count group. • XWH XO6000103 COLORANT - SILVER SPARKLE KG 1* 40000.000 40000.000 420000.0000 Y • 10.5000 • (W) Item exists in another count group. • XWH XO6000104 COLORANT - DEEP PURPLE KG 1* 100.000 100.000 1050.0000 Y • 10.5000 • (W) Item exists in another count group. • XWH XO6000105 COLORANT - BRIGHT WHITE KG 1* 200.000 200.000 2100.0000 Y • 10.5000 • (W) Item exists in another count group. • XWH X613 CHROME PLATED TAP PLATE EA 1* 400.000 400.000 28.0000 Y • .0700 • (W) Item exists in another count group. • XWH X614 1/4" SCREW EA 1* 500.000 500.000 1.7500 Y • .0035 • (W) Item exists in another count group. • XWH X615 1/2" SERRATED WASHER EA 1* 600.000 600.000 2.3400 Y • .0039 • (W) Item exists in another count group. • XWH X616 RUBBER BASE PAD EA 1* 700.000 700.000 Y • (W) Item exists in another count group. • XWH X620 BASE SUBASSEMBLY EA 1* 800.000 800.000 56000.0000 Y • 70.0000 • (W) Item exists in another count group. • XWH X621 CHROME PLATED CARBON EA 1* 800.000 800.000 24.8000 Y • .0310 • (W) Item exists in another count group. • XWH X622 CHROME PLATED CARBON EA 1* 900.000 900.000 27.0000 Y• .0300 • (W) Item exists in another count group. • XWH X623 CHROME PLATED FASTNER PIN EA 1* 10.000 10.000 .0550 Y• .0055 • (W) Item exists in another count group.

COUNT GROUP- 32 INVENTORY COUNT VARIANCE REPORT DATE 8/06/07 TIME 19.20.55 PAGE 1 AXTG670R1COUNT GROUP- 32 INVENTORY COUNT VARIANCE REPORT DATE 8/06/07 TIME 19.20.55 PAGE 1 AXTG670R1Warehouse XWh Physical Invento COMPARE QUANTITY - CUTOFF OPER MCCUSKERD Warehouse XWh Physical Invento COMPARE QUANTITY - CUTOFF OPER MCCUSKERD Warehouse XWH Physical Inventory 08/06/0 Warehouse XWH Physical Inventory 08/06/0 -------- VARIANCE -------- -------- VARIANCE -------- WHSE ITEM NUMBER DESCRIPTION U/M COUNT COUNTED QTY COMPARE QTY QUANTITY AMOUNT OUTWHSE 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* 12000.000 10000.000 2000.000 YXWH X600 Stapler, Model 600 EA 1* 12000.000 10000.000 2000.000 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 3/24/06 .0630 RA01A4 3/24/06 .0630 (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 3/24/06 .0035 RA01A5 3/24/06 .0035 (W) Item exists in another count group. (W) Item exists in another count group.

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 InventoryDay 1• Identify Count Personal (Counters/Checkers/Entry etc.)• Create Physical Inventory Count Group• Generate and Print Inventory Count Entry Lists /or Tags• TrainingDay 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• TrainingDay 4

Activate Next Count• Count Items • Enter Counts (Random/Sequential Count Entry)• Generate and Print Inventory Count Reports • Post Count Adjustments

THANK YOUTHANK YOU

materials management cycle counting and physical inventory david mccusker, senior consultant...

Documents

count date slide

cycle count class slide

cycle count code slide

item slide

cycle count walk

qc slide

productivity slide

sequential entry slide