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PREPARATION OF ERP INVENTORY MANAGEMENT
Documentation
On
Preparation Of ERP Inventory Management
Under the guidance of Prof. Anand Mohan
By
Rupam Dey
MBA-00! Reg. "o.#0$$%0&0
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Inde'
Sl.
No.
Chapter Name Content Page No.
1 Introduction Introduction,
Objective, Motive
4-
! "nal#$i$ Introduction, %h# it i$
re&uired, %hat i$ '(P,
)e# *eature$,
Inventor#Management module
divi$ion, (e&uired
+ool$, Important
method$
-
/e$ign Introduction,
Specimen o* 0IN
card, Store
(e&ui$ition,Material
+ran$*er, Material
"nal#$i$, 2I3O, 3I3O,
ood$ (eceived Note,
Purcha$e Order and
pro*e$$ional ver$ion
o* a IN card and
'.O.5. $#$tem6
Image$
7-8
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4 Implementatio
n
Introduction, '**ective
$ide$
87-1
8 /eci$ion Seven $tep$ !-
ibilograph# 7
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A()"O*+ED,EME"
I hereb# ac9no:ledge that, I have completed the *ollo:ing
project on ;Preparation O* '(P Inventor# Management S#$tem
categor# item$ and their purcha$e $hould be underta9en at
&uarterl# or hal*-#earl# interval$.
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.B'/ anal#$i$-
+he B'/ anal#$i$ i$ mainl# made *or $pare part$. +he
re&uirement and urgenc# o* $pare part$ i$ di**erent *rom that o*
material. "--C anal#$i$ ma# not be properl# u$ed *or $pare
part$. +he demand *or $pare$ depend$ upon the per*ormance o*
the plant and machiner#. Spare part$ are cla$$i*ied a$ Bital HBD,
'$$ential H'D, and /e$irable H/D. +he vital $pare$ $e mu$t *or
running the bu$ine$$ the $moothl# and the$e mu$t be $tored
ade&uatel#. +he non-availabilit# o* vital part$ :ill cau$e havoc
in the concern. +he ' t#pe o* $pare are al$o nece$$ar# but their
$toc9$ mu$t be 9ept at lo: level. +he $toc9ing o* / level part$
can be avoid $ometime$. I* the lead time o* the$e $pare$ i$ le$$,
then $toc9ing o* the$e $pare$ can be neglected.
+he cla$$i*ication o* $pare$ under three categorie$ i$ animportant deci$ion. %rong cla$$i*ication o* an# $pare$ :ill
create di**icultie$ *or production department. +he cla$$i*ication
o* $pare$ $hould be le*t to the technical $ta** becau$e the# 9no:
the need , emergenc#, u$age o* the $pare$.
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7.Inventor# +urnover (atio0
Inventor# turnover ratio i$ calculated to indicate :hether
inventor# have been u$ed e**icientl# or not. +he purpo$e i$ to
en$ure the bloc9ing o* onl# re&uired minimum *und$ in
inventor#. +he Inventor# +urnover (atio al$o 9no:n a$ Stoc9
Belocit#. It i$ normall# calculated a$ $ale$Javerage inventor#
co$t. Inventor# conver$ion period ma# be calculated to *ind the
average time ta9en *or clearing the $toc9$.
S#mbolicall#,
Inventor# +urnover (atio Cost of goodssold
Average Inventory Cost
Or Net sales
(Average )Inventory
"nd Inventor# Conver$ion PeriodDaysa year
Inventory turnover ratio
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."ging Schedule o* Inventorie$0
Cla$$i*ication o* inventorie$ to the period HageD o* their holding
al$o help$ in identi*#ing $lo: moving inventorie$ thereb#
helping in e**ective control and management o* inventorie$. +he
*ollo:ing table $ho:$ aging o* inventorie$ o* a *irm.
*#I+# SC,E'-E (! I+/E+T(RIES
I+'M
N"M'JCO/'
"'
C2"SSI3IC"+ION /"+' O3
"C5KISI+ION
"MOKN+ OF TOTAL
LL1 L-18 da#$ Aune !8,
!LL8
LLLL 18
LL! 1-L da#$ Aune 1L,
!LL8
LLLL L
LL 1-48 da#$ Ma#
!L,!LL8
8LLLL !8
LL4 4-L da#$ Ma# 8,
!LL8
4LLLL !L
LL8 1 and above "pril 1!,
!LL8
!LLLL 1L
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. Cla$$i*ication0
+he companie$ are u$ing variou$ 9ind o* inventorie$ at a time in
their production department. 3ini$hed good$ ma# be a t#pe,
$pare$ ma# be a t#pe and etc. the inventorie$ $hould be cla$$i*ied
and code number$ $hould be a$$igned *or their identi*ication.
+he identi*ication or the $hort name i$ e$$ential not onl# *or the
big companie$ or *irm but *or the $mall *irm$ al$o. 2ac9 o*
proper cla$$i*ication mat lead to reduction in production.
1L.Inventor# report$0
3orm e**ective inventor# control management $hould be 9ept
in*ormed :ith the late$t $toc9 po$ition o* di**erent item$. +hi$ i$
u$uall# done b# preparing periodical inventor# report$. +hi$
report $hould contain all in*ormation nece$$ar# *or managerial
action. On the ba$i$ o* thi$ report manager ta9e$ deci$ion
:henever nece$$ar#. +he more *re&uentl# thi$ report$ are
prepared the le$$ :ill be the chance$ o* lap$e in the
admini$tration o* inventorie$.
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11. 2ead +ime0
2ead time period mean$ the lap$ bet:een the order time and the
$uppl# time lap$. +here i$ a direct relation bet:een lead time
and inventorie$. Suppo$e the lead time i$ o* one month, $o an#
action ha$ ta9en to bring the material$ :ill ta9e a minimum o*
one month. /uring thi$ time the inventor# mu$t be in hand a$
con$uming department :ill have to be $erved *rom the inventor#
held.
1!. Perpetual Inventor# S#$tem0
+he $toc9 ta9ing ma# either be done annuall# or continuou$l#.
" $chedule i$ prepared to ta9e the $toc9 ta9ing *or the variou$
$tore binH$tore roomD. One bin i$ $elected at random and the
good$ are chec9ed a$ per $ho:n in the $tore ledger. +hen $ome
other bin are $elected and done the $ame. +he per$onnel
a$$ociated :ith $tore 9eeping are not told o* $toc9 ta9ing
programme becau$e $tore room i$ cho$en randoml#. +he
In$titute o* Co$t and Management "ccount$, 2ondon de*ine$
perpetual inventor# $#$tem a$ ; a $#$temo* record$ maintainedb# the controlling department, :hich re*lect$ the ph#$ical
movement$ o* $toc9$ and their current balance $ in Aapan, ho:ever K.S. companie$ $tarted
u$ing thi$ techni&ue in 1L.
"ccording to o**icial terminolog# o* C.I.M."., AI+, i$ ;a
techni&ue *or the organi@ation o* :or9 *lo:$, to allo: rapid,
high &ualit#, *leible production :hil$t minimi@ingmanu*acturing :or9 and $toc9 level
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S(MR (T,ER IMP(RT*+T MET,('S (!
M*I+T*I+I+# I+/E+T(R0:
+here have $ome method$ :ithout :hich the inventor#
calculation i$ not complete. +he# are0
"D3ir$t In 3ir$t Out.H3I3OD
D2a$t In 3ir$t Out.H2I3OD
CDSimple "verage Method.
3I3O mean$ the inventor# enter$ *ir$t :ill be u$ing *ir$t to
produce the product. It mean$ the date o* purcha$ing i$
important here.
2I3O mean$ the late comer inventor# :ill arrived *ir$t to the
production department.In $imple average method *ir$t all the re&uired ra: material i$
bought and then price are *ied a$ per their price average. "$ the
average price ta9en the *ear o* lo$ing mone# i$ not their, their
ma# not be pro*it but it i$ $ure that there i$ no lo$$.
%ithout thi$ three method there have $ome other method$ li9e0
?ighe$t In 3ir$t method
Net In 3ir$t Out method
a$e Stoc9 method
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C?"P+'(
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%?"+ /O +?' /'SIN M'"NS0
/e$ign mean$ ho: the competenc# o* a $#$tem $hould be *eel or
under$tand b# a compan# or the *irm :ho :ill be demanding *or
a Simple Inventor# $#$tem.
In thi$ chapter :e are going to di$cu$$ about the proce$$ :e
have de$cribed and di$cu$$ed $o *ar. I* one per$on $a#$ that he
9no:$ the '.O.5. $#$tem *ormula but he doe$ not even 9no: thee**icienc# o* the *ormula then it :ill become good *or nothing.
So *or u$ing the Simple Inventor# $#$tem thi$ i$ the mo$t u$e*ull
portion.
"$ :e have di$cu$$ed $o *ar all about the inventor#
management mean$ ho: it can help one *irm and ho: the
deci$ion :ould be ta9en on the ba$i$ o* the di**erent *ormula6no: it>$ the time to $ho: $ome practical *ield$ :here $uch 9ind
o* application i$ needed.
In thi$ chapter :e :ill be going to have $ome practical oriented
problem$ and $earch *or the $olution in the net chapter. /uring
thi$ :e :ill learn ho: to u$e '.O.5. and other $#$tem li9e 2I3O
and 3I3O.
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PREPARATION OF ERP INVENTORY MANAGEMENT
SP'CIM'N O3 " IN C"(/0
Simple Inventor#
IN card
Material0/$criptionQQ.. Maimum 2evelQQQ..
CodeQQQQ.. Minimum
2evelQQQ...
Store 2edger 3olio NoQ.. Ordering 2evelQQQQ
in No. QQQQQQQ... /anger 2evelQQQQ
Normal 5uantit# o* Purcha$eQQ
(eceipt$ I$$ue$ alance
/ate .(.N.
Or
/ebit
No.
5uantit
#
/ate S.
(e&.
No.
5uantit
#
/ate 5uantit
#
"udit
Note$
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PREPARATION OF ERP INVENTORY MANAGEMENT
+he $pecimen *orm o* a Store$ /ebit note$0
RF 2td.
3rom /epartmentQQQ Serial No. QQ
Credit jobJ%or9 Order NoQ.. /ateQQQQ..
Item
No.
/e$cription Code 5uantit# (ate Balue (emar9$
Prepared
b#QQQ
"uthori@ed
b#QQ
(eceived
b#QQQ
in No. QQQQ.
Store 2edger
Co$t O**ice
Priced b#QQQ
Chec9ed
b#QQQ
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3olio...Store$ /ebit Note
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PREPARATION OF ERP INVENTORY MANAGEMENT
+he $pecimen o* a $tore re&ui$ition0
2ind:al 2td
Store$ (e&ui$ition
/epartmentQQQQ. No. QQQQ.
Aob Proce$$QQQQ.. /ateQQQQ
/e$criptio
n
Code 5uantit# (ate Balue (emar9$
Prepared b#QQQ.
"uthori@ed b#QQ..
StoremanQQQQ.
(eceived b#QQQ.
in No. QQQQ
Store 2edger
3olioQQQQQ
Co$t O**ice
Priced b#QQQQ.
Chec9ed b#QQQ..
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PREPARATION OF ERP INVENTORY MANAGEMENT
+he $pecimen *orm o* a material tran$*er note i$ given belo:0
"C 2td.
Material +ran$*er Note
3rom /epartmentQQQQ Aob NoQQ.Cr. Serial NoQQ
+o /epartmentQQQQQ Aob NoQQ./r. /ateQQQQ
/e$cription Code 5uantit# (ate Balue (emar9$
Prepared b#QQQ..
"uthori@ed b#QQQ.
(eceived b#QQQQ. Co$t O**ice
Priced b#QQQQChec9ed b#QQQ..
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PREPARATION OF ERP INVENTORY MANAGEMENT
+he $pecimen o* a material anal#$i$ $heet i$ given belo:0
/e#>$ 2td.
Material "nal#$i$ Sheet
%ee9 ending onQQQ.
/ate (e&ui$ition
No.
+otal
"mt.
Aob$ Proce$$ Productio
n
Overhead7
($
.
74
($
.
78
($
.
7
($
.
1
($
.
!
($
.
($
.
($.
+otal
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PREPARATION OF ERP INVENTORY MANAGEMENT
" pro*e$$ional ver$ion o* in Card0
1in Car"
/e$cription0 Pigment$ in No.0
S#mbol0R-4L Maimum 2evel0 8LLLL 9g.
Knit0 )g. Minimum 2evel0 LLL 9g.
Ordering 2evel0 !8LLL 9g.
Ordered /ate (eceipt$ I$$ue$ alan
ce
(emar9$
No.
and
/ate
5uantit#
H9g.D
/ate
(ecd.
Challa
n No.
5uantit#H9
g.D
(e
&.
No.
5uantit#
H9g.D
5uantit#
18 L*
1.4.L
!
1LLL
L
.4.L
!
"pril
.
1
!
!
4
7
1
4
LLLL
1LLLL
1
!
4
8
1LLL
!LLL
1LLLL
8LLL
8LL
48LL
!8LLL
1!LLL
1LLLL
4LLLL
LLLL
!8LLL
!48LL
48LL
LLLL
Shortage
.4.L! (e$erved
Aob
No
5t#
H9g.D
/ate
i$$ue
d
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PREPARATION OF ERP INVENTORY MANAGEMENT
" ver# important role in the inventor# management $#$tem i$
plated b# the 3I3OH3ir$t In 3ir$t 3ir$t OutD and 2I3OH2a$t In
3ir$t OutD method. elo: :e are tr#ing to $ho: a *orm o*
trading account that ho: thi$ t:o method can help to de*ine
pro*it0
Particular$ 3I3O 2I3O %eighte
"verage
Sale$0 !8L Tr$. 4 1LLL
8L Tr$. 7L !48LL
1LL Tr$. 74 74LL
Opening Stoc9
Purcha$e0
1LL Tr$. 41 41LL
!LL Tr$.8L 1LLLL
4LL Tr$. 81.78 !L78L
2e$$0 Clo$ing Stoc9
Co$t o* ood$ Sold
47LL 47LL 47LL
LL
48L
LL
48L
LL
48L
78L
817
78L
LL
78L
8LLL
8 48L 78L
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PREPARATION OF ERP INVENTORY MANAGEMENT
ro$$ Pro*itHSale$ U Co$t o* good$
$oldD
14 1L8L 1418L
" pro*e$$ional ver$ion o* u$ing '.O.5.0
2et *irm ha$ *ollo:ing problem$
Ordering &uantitie$ Price per 9g Hr$.D
2e$$ than 8LL8LL but le$$ than 1LL
1LL but le$$ than 4LLL
4LLL but le$$ than LLL
LLL and above
1!.LL11.L
11.L
11.4L
11.!L
+he annual re&uirement *or the material i$ LLL 9g. +heordering co$t per order i$ r$. 1! and the $toc9 holding co$t i$
e$timated at !LV o* material co$t per annum. It i$ re&uired to
compute the mo$t economical propo$e the *irm $hould accept$.
/uring our di$cu$$ion on the previou$ chapter on page no. ! :ehave $een ho: to calculate the 'conomic Order 5uantit#. #
u$ing the method no: :e can calculate the be$t economic order
:hich can be placed. ?ere :e *ound the e**icienc# o* Simple
Inventor#WWWWWWWWWWWWWWWWWWWW
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Computation of most economical or"ering 2uantity
DOrdering &uantit# $i@eH9gD
DNumber o* Order$
Order
Annual Requirement
D"verage Inventor#X9gY
DBalue o* average inventor#
H"verage inventor# PriceD
4LL
!L
!LL
!4LL
8LL
1
!8L
!8L
1LL
8
LL
!L
4LLL
!
!LLL
!!LL
LLL
1
4LLL
44LL
D"nnual total co$t0 ($. ($. ($. ($. ($.
aDCo$t o* Material
bDOrdering co$tHNo.o* order$ 1!D
cDCarr#ing co$tH!LV o* value o*verage inventor#D
+otal annual co$tHabcD
LLL
!4L
4L
44LL
1!
8L
1!LL
L
18
!LL
!4
48L
LL
1!
L
7!L 81! 471 874 87!
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PREPARATION OF ERP INVENTORY MANAGEMENT
+he $pecimen o* a good$ received i$ given belo:0
RF 2td.ood$ (eceive Note
3romQQQQ
No. QQQQQQ.
/ateQQQQQQ
/eliver# Note No .J Challan No. QQQItem /e$cription Code
No.
Purcha$e
Order
No.
5uantit#
Ordered
5uantit#
(eceived
5uantit#
(ejected
Net
5uantit#
received
(ate Balue (emar9$
+ran$port ill No. Store$
2edger
"ccount$ (e*erence In$pection
done b#
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PREPARATION OF ERP INVENTORY MANAGEMENT
+he $pecimen *orm o* a purcha$e order i$ given belo:0
/e#>$ 2td.Purcha$e Order
+o,
MJ$. QQQQ..Hname o* $upplier$D No. QQ
/ateQQQ.
(e*erence No. QQQ..
Purcha$e (e&ui$ition NoQ.
/ear $ir,
Four o**er contained in #our &uotation No. Q./atedQ.. i$
hereb# accepted. Plea$e $uppl# the *ollo:ing material$ a$ per the
term$ and condition mentioned over lea*0
Ite
m
No.
Cod
e
No.
/e$criptio
n
5uantit
#
(at
e
Balue /eliver
# /ate
(emar9
$
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PREPARATION OF ERP INVENTORY MANAGEMENT
'i$e dut#Sale$ +a
/i$count allo:ed
Pac9age Charge
Pac9age to be credited on return Purcha$e
managerJmanager
Carriage on /eliver# *or /e#>$ 2td.+erm$ on pa#ment
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No: there have $ome image$ u$ed in compan# to maintain the
inventor#0
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+hi$ belo: *orm i$ to about the billing o* a compan#0
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+he belo: image i$ $ho:ing a $o*t:are *or maintaining
inventor#0
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PREPARATION OF ERP INVENTORY MANAGEMENT
+hi$ *orm i$ about to collect data about the per$on :ho bu#$ or
hold$ or re$pon$ible *or inventor#0
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+he *ollo:ing $ho:$ the :a# in :hich inventor# record$ are
9ept in a *irm0
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+he *ollo:ing *orm are u$ed :hen an# project$ are under ta9en0
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C?"P+'(
4
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+hrough out the $e$$ion :e have di$cu$$ed a proper inventor#
management :hich i$ mea$ure o* a good compan#. +he
compan# :hich can maintain it$ inventor# properl# can achieve
a great $ucce$$ in their bu$ine$$. +he be$t concept o*
implementing inventor# management $#$tem i$ co$t
minimi@ation and pro*it maimi@ation.
8ee! the /y/tem 3a/ de/igned /o that 3hen
materia/ hit the /afety /toc1 eve! it 3a/ time to
reorder. De/pite information in the /y/tem that
very ceary aert/ u/er/ that it i/ time to reorder 2y
/aying 9"O*:9 again 3hen it i/ time to reorder!
there 3ere /ti i//ue/ regarding the actua
reordering. here 3a/ even a countdo3n 2y the
/y/tem that ao3/ u/er/ to 1no3 ho3 many day/
they have eft unti they have to reorder. It 3a/
reay 5uite cear.
8o a/ per the practica pro2em/ in managing thi/
1ind of /ituation the thing i1e E.O.;. can hep me a
ot. One important thing i/ that no3 a day/ in the
era of internet the data can 2e /end through
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PREPARATION OF ERP INVENTORY MANAGEMENT
+he *actor$ that prevent improvement$ in the inventor#
management $#$tem are not u$uall# related to the '(P $o*t:are
tool$ that are purcha$ed and implemented, but rather to the :a#
the compan# i$ organi@ed and managed. (eduction in inventor#
re&uire$ bu$ine$$ proce$$ change--and it i$ at that point that
organi@ational $tructure, emplo#ee$, and the internal audit
department come into pla#.
Inventor# i$ the mo$t di**icult :or9ing capital component tomanage becau$e man# o* the contributing Eo:ner$E that a**ect it
are cro$$-*unctional. ecau$e no $ingle *unctional area o:n$ the
inventor# proce$$, the involvement o* the internal audit
department i$ li9el# to be valuable.
+he techni&ue o* inventor# proportionalit# i$ mo$t appropriate
*or inventorie$ that remain un$een b# the con$umer. "$ oppo$ed
to E9eep *ullE $#$tem$ :here a retail con$umer :ould li9e to $ee
*ull $helve$ o* the product the# are bu#ing $o a$ not to thin9 the#
are bu#ing $omething old, un:anted, or $tale6 and di**erentiated
*rom the Etrigger pointE $#$tem$ :here product i$ reordered
:hen it hit$ a certain level6 inventor# proportionalit# i$ u$ed
e**ectivel# b# ju$t-in-time manu*acturing proce$$e$ and retail
application$ :here the product i$ hidden *rom vie:.
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+here are $ome e**ective $ide$ o* implementation0
2e$$ ri$9 and le$$ co$t$.
Capital Co$t
Storage and ?andling Co$t
(i$9 o* price decline
(i$9 o* ob$ole$cence
(i$9 deterioration in &ualit#
5uic9 calculation o* clo$ing $toc9
?elp*ul in *ormulating purcha$e policie$
Chec9 on $tore$ per$onnel
?elp*ul in production planning
Inve$tment$ under chec9
'rror$ and $hortage are ea$il# declared
Increa$ing e**icienc# o* Organi$ation
+he right &uantitie$ o* material$ are purcha$ed or produced
at the right time
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Inve$tment in inventor# are reduced
%a$te$ are eliminated
Carr#ing and holding co$t o* inventor# reduced a$ becau$e
o* le$$ inventor#
(eduction in co$t o* &ualit# $uch a$ in$pection, co$t o*
dela#ed deliver#, earl# deliver#, proce$$ing document$ etc.
re$ulting into overall reduction in co$t.
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C?"P+'(8
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'**ective internal audit a$$e$$ment$ o* compan# inventor#
management $#$tem$ can be de*ined b# a $even-$tep proce$$.
1. Obtain management commitment. Management mu$t clearl#communicate the compan#G$ vi$ion, $trateg#, and $hort- and
long-term goal$ and objective$. Man# *unctional area$ impact
inventor#, #et no one *unctional area o:n$ the inventor#
proce$$. +o improve the inventor# management $#$tem, $enior
management mu$t lead the :a#6 be highl# vi$ible6 communicate
clearl#6 and deliver *ocu$ed, *ull-time leader$hip.
!. /evelop proce$$ objective$ and deplo# the team. +he internal
audit department $hould identi*# an internal audit repre$entative
and a repre$entative *rom each *unctional area, including $ale$
and mar9eting, engineering, purcha$ing, planning and
production, and *inance and co$t accounting.
Once the team *or each *unctional area ha$ been e$tabli$hed, the
group $hould determine proce$$ objective$, mile$tone$, and due
date$. "n illu$tration o* t#pical proce$$ objective$ b# *unctional
area can be$t be de$cribed in the EBalue ChainE $ection o* the
EInventor# ManagementE chart on page$ 4!-4.
. Identi*# the proce$$. +he team $hould identi*# and evaluate allthe inventor#-related activitie$ :ithin the *unctional area.
enchmar9 data $hould then be ac&uired *or all 9e# proce$$e$ or
activitie$, and compari$on$ $hould be made bet:een current
activitie$ and tho$e o* the Ebe$t in cla$$
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4. /e*ine the proce$$. +eam member$ $hould *amiliari@e
them$elve$ :ith the proce$$e$ that a**ect inventor# *or each
*unctional area. +he team $hould then diagram the proce$$ and
document it$ impact on the compan#G$ inventor#. 'ver# $tep o*
the proce$$ $hould be included. Stic9# note$ on a :all ma# be a
u$e*ul tool *or creating the diagram.
8. Mea$ure the proce$$. +he team $hould de*ine per*ormance
mea$urement$ ba$ed on 9no:ledge gathered in $tep$ and 4.
Per*ormance mea$urement$ act a$ agent$ o* change6 a$ the old
$a#ing goe$, E%hat get$ mea$ured, get$ done.E Kn*ortunatel#,
man# companie$ have *ar too man# per*ormance mea$ure$ and
*ar too *e: that are relevant to their $trateg#. Pour 9e# ground
rule$ $hould de*ine per*ormance mea$urement$0
Z "cce$$ibilit#0 +he data re&uired mu$t be readil# available.
Z Simplicit#0 +he per*ormance driver mu$t be under$tandable.
Z (elevance0 +he per*ormance driver mu$t $upport the de*ined
$trateg# and mu$t be actionable. It mu$t be tied to the $trategic
goal and not $impl# applied :ithin a *unctional area. Can it pa$$
the E$o :hatE &ue$tion to get to the net level
Z (eliabilit#0 +he per*ormance driver mu$t be predictable. Can it
be in*luenced b# uncontrollable *actor$ Per*ormance
mea$urement$ $hould al$o0
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Z Provide manager$ and emplo#ee$ :ith critical in*ormation
about e**icienc# and e**ectivene$$ o* bu$ine$$ operation$.
Z Serve a$ a *oundation *or continuou$ improvement initiative$.
Z e valid and $tati$tical.
Z e tied to compen$ation.
. "$$e$$ *or improvement. +he team $hould evaluate the re$ult$
o* the *unctional proce$$ revie:$ and determine a rough order
magnitude *or potential inventor# reduction and increa$ed
operational e**iciencie$.
7. Communicate the re$ult$. +he team $hould communicate the
re$ult$ o* the *unctional revie: to each *unctional area manager
and re&ue$t *eedbac9 on the a$$e$$ment. +he internal audit
department ma# then con$olidate the a$$e$$ment re$ult$ *romeach *unctional area and prepare a con$olidated operational
report :ith a recommended action plan to upper management.
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1. E http0JJ*indarticle$.comJpJarticle$JmiWm418Ji$WW87JaiW7874J
!. http0JJ:::.ro$eindia.netJblogJ!LLJL1JL4Jerp-inventor#-
managementJ
. http0JJen.:i9ipedia.orgJ:i9iJInventor#
4. http0JJ:::.google.co.inJimage$hlen=gbv!=tb$i$ch
V"1=$a1=&inventor#management*orm=a&*=a&i=a&l=o&=g$Wr*ai=$tartL
8. 3IN"NCI"2 M"N"'M'N+ b# Sha$hi ). upta, (.).
upta, Neeti upta.H)al#ani PublicationD
http://findarticles.com/p/articles/mi_m4153/is_6_57/ai_69759746/http://www.roseindia.net/blog/2008/01/04/erp-inventory-management/http://www.roseindia.net/blog/2008/01/04/erp-inventory-management/http://en.wikipedia.org/wiki/Inventoryhttp://www.google.co.in/images?hl=en&gbv=2&tbs=isch%3A1&sa=1&q=inventory+management+form&aq=f&aqi=&aql=&oq=&gs_rfai=&start=0http://www.google.co.in/images?hl=en&gbv=2&tbs=isch%3A1&sa=1&q=inventory+management+form&aq=f&aqi=&aql=&oq=&gs_rfai=&start=0http://www.google.co.in/images?hl=en&gbv=2&tbs=isch%3A1&sa=1&q=inventory+management+form&aq=f&aqi=&aql=&oq=&gs_rfai=&start=0http://www.roseindia.net/blog/2008/01/04/erp-inventory-management/http://www.roseindia.net/blog/2008/01/04/erp-inventory-management/http://en.wikipedia.org/wiki/Inventoryhttp://www.google.co.in/images?hl=en&gbv=2&tbs=isch%3A1&sa=1&q=inventory+management+form&aq=f&aqi=&aql=&oq=&gs_rfai=&start=0http://www.google.co.in/images?hl=en&gbv=2&tbs=isch%3A1&sa=1&q=inventory+management+form&aq=f&aqi=&aql=&oq=&gs_rfai=&start=0http://www.google.co.in/images?hl=en&gbv=2&tbs=isch%3A1&sa=1&q=inventory+management+form&aq=f&aqi=&aql=&oq=&gs_rfai=&start=0http://findarticles.com/p/articles/mi_m4153/is_6_57/ai_69759746/