MNS reset to zero upon receipt option

[B964]

MSDA has option to reset MNS to zero upon receipt of a zero on hand part.
Ex Part # 123 is 12 MNS and you order one. When order is received MNS resets to zero to match MNR.

Pros and cons? Other than the idea that someone could DS zero an aged on hand and post in back in to make old inventory look newer.

[FixedManager]

I am sorry to say since seeing your post I have yet to think up any PRO's for it with this exception; lazy parts and service managers with aging as a component of their pay plans (could also be considered a CON).

[B964]

Thanks for the reply.

One example of a PRO may be...…

We have a new mandatory stocking list (MSL) of 150 parts we have minimal movement on over last 18 months, do not meet our normal stocking criteria and have zero on hand that I was required to order.

When those parts are received with reset MNS off I instantly increase my on hand with MNS greater than 12 months.

This manufacture also does not have an indicator built in price tape to be able to separate these MSL parts. When doing a MSR suggested these parts are not excluded.

Yes, I see the "CON" part of the equation but in same spirit if pay is based partly on obsolescence is it the PM's fault for these instantly obsolete parts?

CDK cloned another store inventory when we opened this store. Day one half my inventory was over 12 MNS but if this function was on I would have a better idea now of what my aging really is.

On a related note at my last dealer on Automate the PM was changing QOH of obsolete parts to zero, doing a lost sale and then reposting part. He was getting gold stars at inventory time for nothing over 12 MNS.

[FixedManager]

Thanks for the reply. One example of a PRO may be...…

We have a new mandatory stocking list (MSL) of 150 parts we have minimal movement on over last 18 months, do not meet our normal stocking criteria and have zero on hand that I was required to order. When those parts are received with reset MNS off I instantly increase my on hand with MNS greater than 12 months. This manufacture also does not have an indicator built in price tape to be able to separate these MSL parts. When doing a MSR suggested these parts are not excluded. Yes, I see the "CON" part of the equation but in same spirit if pay is based partly on obsolescence is it the PM's fault for these instantly obsolete parts?

I understand your dilemma and have been there myself, however you have a fiduciary responsibility to your owner.

* What is the cost to purchase and maintain these items relative to the value received from the manufacturer - is the profit add worth the addition?
* Why are they excess inventory in your store - is additional training needed for the Parts Associates or Technicians to sell these items?
* Is the net affect on your pay plan really so much relative to the increase from the manufacturers bonus - perhaps a pay plan discussion is in order

CDK cloned another store inventory when we opened this store. Day one half my inventory was over 12 MNS but if this function was on I would have a better idea now of what my aging really is.

Why was this done?

* If this was a buy sell you inherited the entire inventory and this was the correct way to handle it. Be sure to read the sale agreement and if there are value exclusions for damaged and aged inventory that they are removed from your inventory.
* If this is a brand new point in a market where this is a new franchise, this was wrong and a discussion with the Controller is in order.

On a related note at my last dealer on Automate the PM was changing QOH of obsolete parts to zero, doing a lost sale and then reposting part. He was getting gold stars at inventory time for nothing over 12 MNS.

While off topic, this is fraudulent activity and the individual you referenced is lucky that the owners did not gift him with some connected chrome bracelets.

[B964]

* What is the cost to purchase and maintain these items relative to the value received from the manufacturer - is the profit add worth the addition? Best I can figure it's a wash. 18 grand of cost, 50% plus will not sell and will be returned in 18 months, time spent and space lost, not doing it and falling out of favor with MGF will cost on discounts.
* Why are they excess inventory in your store - is additional training needed for the Parts Associates or Technicians to sell these items? These are not add on related parts that are being missed by counterpersons.
* Is the net affect on your pay plan really so much relative to the increase from the manufacturers bonus - perhaps a pay plan discussion is in order Not part of my pay plan but in spirit of being my dealers "stock broker" I do not want to invest his money in a 18 month no dividend event.

Why was this done? Uninformed personnel decision to take easy way to filling new store with inventory.
* If this was a buy sell you inherited the entire inventory and this was the correct way to handle it. Be sure to read the sale agreement and if there are value exclusions for damaged and aged inventory that they are removed from your inventory. Was not inherited.
* If this is a brand new point in a market where this is a new franchise, this was wrong and a discussion with the Controller is in order. Uninformed and unresponsive.

While off topic, this is fraudulent activity and the individual you referenced is lucky that the owners did not gift him with some connected chrome bracelets.Actions were brought up to Controller who brought it up to Principle who just wanted to continue golfing and boating.

Again thank you for the perspective. I fear my days of working with uppers of your type are never to happen again.

[mrjaygraham]

MSDA has option to reset MNS to zero upon receipt of a zero on hand part.
Ex Part # 123 is 12 MNS and you order one. When order is received MNS resets to zero to match MNR.

Pros and cons? Other than the idea that someone could DS zero an aged on hand and post in back in to make old inventory look newer.

MNS and MNR are both needed to accurately age all parts in your inventory. They are both great pieces of information. Not understood or used incorrectly can cause a lot of inventory issues. Clearing the MNS field with each receipt was never a true "need" but since so many misunderstand how to age a part accurately, they added this feature. Turn it on, turn it off - I'm good with either decision - as long as you understand what's happening behind the scenes.

Let's say you have a part on your shelf that hasn't sold in 8 months. Someone buys that part. Five minutes later they return that part. YOUR MNS HAS BEEN RESET - AND THE RETURN WILL NOT PUT THE MNS FIELD BACK TO WHAT IT WAS. However, the MNR still shows the last time you bought it (or at least the last piece/part)

Let's say you have two alternators on your shelf. They are both 13 months old. Someone buys one of them. The MNS is now reset. How old is the other alternator still on the shelf? 13 months. What does the computer say MNS is... "blank". This is why MNR needs to be considered. I see PM's all the time forget this and build idle reports or use MSR the wrong way - causes idle buildup and they miss return opportunities. Lets say that other part was on the locater at 50% off and you only have MNS setup on the locator to discount parts.... that other one just fell off the discounted list!

MNS shouldn't be used ALONE.... MNS and MNR work together.