Inaccurate inventory
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morgan
Inaccurate inventory
In the last year I have had a rise in inaccurate bin counts. I have eliminated the Service dept. taking parts off of RO's and theft as being a part of the problem and feel it is primarily my counter people either charging out the wrong number or the wrong quantity, or not charging out the part at all. I have been through the Ford parts upgrade and follow their last sale, out of stock, and stock order audits religiously and although this helps me in correcting the bin counts it does not reduce the problem occuring. We are on the ADP Elite any suggestions, procedures, would be helpful. Thanks
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sallen1
Inaccurate inventory
Wow, callbob has a great suggestion... Another computer!
One thing though, a computer system only keeps track of information. Good or Bad, no system will eliminate 'charging the wrong number', 'not charging the part', 'charging the wrong quantity'.
Morgan's problem sounds like a 'people problem', work on your people.
One thing though, a computer system only keeps track of information. Good or Bad, no system will eliminate 'charging the wrong number', 'not charging the part', 'charging the wrong quantity'.
Morgan's problem sounds like a 'people problem', work on your people.
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fburrows
Inaccurate inventory
Morgan:
I doubt this has much to do with your computer system. I would start looking at your basic procedures. Check in would be first. Is someone really conscientiously checking the parts in or just checking off numbers on a packing slip? Things like pulling bin tags dont catch missed picked parts. Since we sell bar code systems I would have to plug them also.
I would also pull a hundred repair orders and review the parts that are charged out. Do they match the labor description? Is there a replace water pump with no water pump charged out? I bet you would be amazed if you asked a couple of your technicians around the soda machine if they notice parts being charged out inaccurately. They usually know who is doing it right and who is not, but will never comment unless you ask them. Service writers would also know what is going on. I would also interview each of your parts people to get their input.
I would also review the transaction journal on every shortage to see if there might be an answer there. I would take every opportunity when a shortage comes up to investigate that individual part number to try and find out what happened. Also do a bin check on parts that might have been handed out in place of the part that was charged out.
Good Luck
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Frank Burrows
Automotive Business Solutions LLC
frank@autobusiness.org
I doubt this has much to do with your computer system. I would start looking at your basic procedures. Check in would be first. Is someone really conscientiously checking the parts in or just checking off numbers on a packing slip? Things like pulling bin tags dont catch missed picked parts. Since we sell bar code systems I would have to plug them also.
I would also pull a hundred repair orders and review the parts that are charged out. Do they match the labor description? Is there a replace water pump with no water pump charged out? I bet you would be amazed if you asked a couple of your technicians around the soda machine if they notice parts being charged out inaccurately. They usually know who is doing it right and who is not, but will never comment unless you ask them. Service writers would also know what is going on. I would also interview each of your parts people to get their input.
I would also review the transaction journal on every shortage to see if there might be an answer there. I would take every opportunity when a shortage comes up to investigate that individual part number to try and find out what happened. Also do a bin check on parts that might have been handed out in place of the part that was charged out.
Good Luck
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Frank Burrows
Automotive Business Solutions LLC
frank@autobusiness.org
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ferris
Inaccurate inventory
-Are you doing inventory perpetually and regularly?
-Do you have good procedures in Shipping/Receiving and at your Inventory Clerks desk (this may be your desk)?
-Do your Shipper/Receiver and your Inventory Clerk have a good communications and procedures linking them?
-Are your Counter people paid based on what they sell?
Is your computer access setup such that any adjustments to parts charged out on RO's can only be made by the Parts Dept? As Manager the Inventory $$ are your responsiblity, NO ONE outside the Parts Dept has any business taking parts off an RO!!
-Do you stress the rule that, "Nothing leaves the Parts Dept unless it is charged out-CORES included"?
Is your Parts Room secure when the Parts Dept is closed for business?
Next time you have a discrepency look in function PDA T to track all the transactions that Part-NO. has experienced. This is a great tool. With practice you can become very good at solving most oif these type of mysteries.
Also use RA to receive orders. Then print out this receipt and compare value to your delivery note or packing slip.
Good Luck, hope some of this helps!
-Do you have good procedures in Shipping/Receiving and at your Inventory Clerks desk (this may be your desk)?
-Do your Shipper/Receiver and your Inventory Clerk have a good communications and procedures linking them?
-Are your Counter people paid based on what they sell?
Is your computer access setup such that any adjustments to parts charged out on RO's can only be made by the Parts Dept? As Manager the Inventory $$ are your responsiblity, NO ONE outside the Parts Dept has any business taking parts off an RO!!
-Do you stress the rule that, "Nothing leaves the Parts Dept unless it is charged out-CORES included"?
Is your Parts Room secure when the Parts Dept is closed for business?
Next time you have a discrepency look in function PDA T to track all the transactions that Part-NO. has experienced. This is a great tool. With practice you can become very good at solving most oif these type of mysteries.
Also use RA to receive orders. Then print out this receipt and compare value to your delivery note or packing slip.
Good Luck, hope some of this helps!
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jayb
Inaccurate inventory
Frank soft sells the bar code system in order to stay away from the advertising format, however he knows a bar code system that does check-in, bin inventory, and point of sale makes a PM life much easier.
Front and rear counter sales done by bar code
interphase with your host computer system, prints invoices/RO without fat finger mistakes.
One system can even tell you if the part is being put into the correct bin, time,date,and employee ID stamp.
No "machine" can fix all the issues in a parts dept, however it can greatly assist the employee and provide a record of who is getting it right and who is not.
Jay Bain
GigaBytes Dealership Solutions
jbain@satx.rr.com
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Front and rear counter sales done by bar code
interphase with your host computer system, prints invoices/RO without fat finger mistakes.
One system can even tell you if the part is being put into the correct bin, time,date,and employee ID stamp.
No "machine" can fix all the issues in a parts dept, however it can greatly assist the employee and provide a record of who is getting it right and who is not.
Jay Bain
GigaBytes Dealership Solutions
jbain@satx.rr.com
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Gord
Inaccurate inventory
Morgan,
A couple of things we've tried. I know producing paper is not the goal but sometimes it works. We have 3x5 "Inventory Adjustment" pads made up. 20 or 30 sheets to a pad. Pt#, Bin, what you found or didn't find, who you are, date, did you adjust,(not everybody has access to Post Sales). What research did you do or not do. Slip goes to inventory person. They can do more research. The fact that it gets written down and followed up on gets some buy in. Match adjustment sheets either to transaction detail or RPM. Depends on time you have to spend.
Have also set up SGR report that will let you print up to 4 different BIN locations. Prints O.H., SS, SO, BRP, BSL, PJ, YTD. We are concerned with O.H. integrity but have found neat and tidy, tagged, in order solves some O.H. issues. Have divided up BIN locations between inside parts staff. This report gives them some idea of whether it is a stocking item, how many we could be stocking. If item has zero O.H. and SS is anything but blank, delete BIN. Try to have report print only items that are stocked.
Have made effort so report prints almost same as Physical Inventory Sheets.
We are a 24x7 operation. A true perpetual is tough. We try to concentrate on, Did you get what you paid for?, Did it get put away identified where somebody can find it?, Did you bill out what you pulled?, If you found a problem, is there a process in place to get it fixed without taking flak.
May the force be with you.
A couple of things we've tried. I know producing paper is not the goal but sometimes it works. We have 3x5 "Inventory Adjustment" pads made up. 20 or 30 sheets to a pad. Pt#, Bin, what you found or didn't find, who you are, date, did you adjust,(not everybody has access to Post Sales). What research did you do or not do. Slip goes to inventory person. They can do more research. The fact that it gets written down and followed up on gets some buy in. Match adjustment sheets either to transaction detail or RPM. Depends on time you have to spend.
Have also set up SGR report that will let you print up to 4 different BIN locations. Prints O.H., SS, SO, BRP, BSL, PJ, YTD. We are concerned with O.H. integrity but have found neat and tidy, tagged, in order solves some O.H. issues. Have divided up BIN locations between inside parts staff. This report gives them some idea of whether it is a stocking item, how many we could be stocking. If item has zero O.H. and SS is anything but blank, delete BIN. Try to have report print only items that are stocked.
Have made effort so report prints almost same as Physical Inventory Sheets.
We are a 24x7 operation. A true perpetual is tough. We try to concentrate on, Did you get what you paid for?, Did it get put away identified where somebody can find it?, Did you bill out what you pulled?, If you found a problem, is there a process in place to get it fixed without taking flak.
May the force be with you.
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Billy
Inaccurate inventory
We were having trouble with accuracy and like you, we had completed Ford's Parts Upgrade. So, we signed up for another week and had the Parts Upgrade consultant focus just on data accuracy. He was great and we identified problems with receiving, too many hiding places for parts, and our processes controlling part number changes. He helped us idenity and correct our problems.
Good Luck!
Billy
Good Luck!
Billy
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GEvans
Inaccurate inventory
I had the same problem a few years ago. Sometimes you really have to dig. I found several problems at the same time. A) Parts were not being received correctly. The guy checking in the parts was checking them by the parts depot's picking label, not the parts tag on the box - easily corrected. B) Incorrectly posting the received parts - I was guilty here - Sometimes in my haste I goofed! I double and triple check myself now. C) Rear countermen were overwelmed at times and did not charge out the correct part, the incorrect quantity, or didn't charge out the part at all! This was by far the biggest problem. As mentioned by fburrows, I pulled R/Os and found the problem. These guys egos were too big to ask for help when they got busy. They could "handle it" until I showed them exactly how much they were losing in a month. I now keep a real close eye on them and pitch in when a tech is at the counter not being helped. I had to put another window in my office but it was a heck of a lot cheaper. D) Finally, I found out my parts driver's father owned a body shop and NEVER bought a part from us. We would be short a bunch of parts that fit the same car at the same time. Hmmm... Security cameras we had installed caught him. And not the cause but a problem anyway - E) We dumped the R&R ERA system because it was so damned slow! I don't know about ADP and UNIX but there is no reason to back out of one screen you are working on to get to another! I.E. - (Working up a stock order, stopping in the middle, get out of the stock order screen, change screens to charge out parts on a ticket, then change screens again to work on your stock order.)
Parts shortages were my responsibility. Take care of it what ever you have to do or you may not have the responsibility anymore!
Parts shortages were my responsibility. Take care of it what ever you have to do or you may not have the responsibility anymore!
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Gerry Laughlin
Inaccurate inventory
Since GEvans posted an admission that he had made mistakes that led to inaccurate inventory counts, guess I ought to chime in with my own goof up that led to inaccurate counts.
I was having a similar problem with counts being off. The first thing I did was to check the history using PDA in ADP. Nothing really stood out. I didnt really see any kind of a pattern as far as what vehicle the missing parts fit. Eventually the only thing I saw in common was that they were all AC-Delco parts. Since all AC-Delco parts are purchased from my local WD I knew where to head next. I worked with my shipping and receiving clerk for a few afternoons to see how the accuracy of the orders were and her procedures to ensure all parts were received. She had been using a check off system of matching the parts to the bill, just as she had been taught many years ago. Nothing seemed out of kilter there. To make a long story short, since the orders came in late in the afternoon she would check them off, then set them on a cart to be put away in the morning by herself or the driver. The only problem with this was that the cart was left in the secure shipping and receiving area, where a number of drivers would make drop-offs throughout the night. Since the parts had already been checked in, no discrepancies were seen. Amazingly as soon as I instituted a rule of absolutely no parts are to be left in the secure shipping and receiving area overnight my problem disappeared. I know that this seems like common sense, I had ASSUMED that every thing was being moved, she had assumed that since these companies had a key to the secure shipping and receiving area that there was no risk, she trusted them.
Two lessons were relearned:
1: Assume nothing.
2: Like you, I was sure it couldnt be a theft problem with my people, which it wasnt, but it was a theft problem nonetheless. So if you trust your people thats great, but keep an eye on whom they are trusting.
Gerry
I was having a similar problem with counts being off. The first thing I did was to check the history using PDA in ADP. Nothing really stood out. I didnt really see any kind of a pattern as far as what vehicle the missing parts fit. Eventually the only thing I saw in common was that they were all AC-Delco parts. Since all AC-Delco parts are purchased from my local WD I knew where to head next. I worked with my shipping and receiving clerk for a few afternoons to see how the accuracy of the orders were and her procedures to ensure all parts were received. She had been using a check off system of matching the parts to the bill, just as she had been taught many years ago. Nothing seemed out of kilter there. To make a long story short, since the orders came in late in the afternoon she would check them off, then set them on a cart to be put away in the morning by herself or the driver. The only problem with this was that the cart was left in the secure shipping and receiving area, where a number of drivers would make drop-offs throughout the night. Since the parts had already been checked in, no discrepancies were seen. Amazingly as soon as I instituted a rule of absolutely no parts are to be left in the secure shipping and receiving area overnight my problem disappeared. I know that this seems like common sense, I had ASSUMED that every thing was being moved, she had assumed that since these companies had a key to the secure shipping and receiving area that there was no risk, she trusted them.
Two lessons were relearned:
1: Assume nothing.
2: Like you, I was sure it couldnt be a theft problem with my people, which it wasnt, but it was a theft problem nonetheless. So if you trust your people thats great, but keep an eye on whom they are trusting.
Gerry