Presentation

Front / first slide

Cast:Russel NovizaRey San PedroChris AranzasoJeff ArnesAra MasicapDiana Herrera

Project Title:

Producer: CHIQCLOG TEAM Director: Huy Q. Truong

Date: May 28, 2013

Location: Can Asian Inc. Boardroom

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Problem Stratification

No.

Proposed Problem Cost Impact

Controllability / Achievability

Result

1.Low value imported spare parts with high freight charges

PhP 184,000.00 High

7% or 23 purchases out of 307 purchases have value lower than US$200.00

2. Too many reconciling items that leads to late posting of Inventory Count and submission of FG Inventory Report

None Medium

Average of 47% reconciling items from June to November, 2012

3. Late processing of recoveries documents from HFI to FG (Delivery of FG before transfer posting)

TBD Low

4.Container deposits with deductions PhP 21,693.84 Medium

Average of 1% deductions from Jan-Dec. 2012

5.Non-moving FGs without PO Low

Introduction

Logistics Department

Purchasing

Inventory Supply Planning and Control

Physical Distribution / Warehousing

Purchasing

Inventory Supply Planning and Control

Introduction

Logistics Department

Physical Distribution / Warehousing

Introduction

Process FlowPhysical Inventory Count of Finished Goods

FG Physical Inventory Count

Email Schedule of Inventory Count

Create PID for FG

Prepare Count Sheets

Logistics Asst. - PD/Warehousing


TPL Warehousing


FG Physical Inventory Count

Email Schedule of Inventory Count

Create PID for FG

Prepare Count Sheets



TPL Warehousing

Conduct Inventory Count Finance, Logistics, TPL

Reconciliation of Inventory Count

Finance, Logistics, TPL

Agreed? ConductRecount

NO

YES

Countersign the count sheets




Conduct Inventory Count Finance, Logistics, TPL

Reconciliation of Inventory Count


Agreed? ConductRecount

NO

YES

Countersign the count sheets



Prepare summary of the count and count report including reconciling

documents

Logistics Asst. – PD/Warehousing

Validate the correct summary versus SAP

count

Finance Assistant

Post PID of Inventory Count

Logistics Assistant. – PD Warehousing

Submit inventory count report



documents


count





documents

Logistics Asst. – PD/Warehousing


count

Finance Assistant





Counted FG

Problem Statement

There were an average of 47% reconciling items in pallets during FG inventory count

from June – November, 2012

Results:

Late Posting of Inventory Count and Submission of report

Reconciling Items

Months No. of Pallets

No. of Reconciling items in Pallets % Production

PD/ Warehousing

June 3,081 944 30.64% 22.49% 8.15%

July 2,555 457 17.89% 9.86% 8.73%

August 2,682 2,180 81.28% 49.55% 31.73%

September 1,866 521 27.92% 15.27% 12.65%

October 2,042 1,065 52.15% 32.03% 20.13%

November 1,530 1,127 73.66% 44.58% 29.08% 13,756 6,294 47.26% 28.96% 18.41%

Initial ObjectivesTo reduce the monthly reconciling items by 80% during FG Inventory

Count

Desired EffectPosting of Inventory Count within 10 working days from date of Count and Submission of Report within 20 days

from date of posting

Root Cause AnalysisThere were an average of 47% reconciling items in pallets

during FG inventory count from June – November, 2012

People Product

Procedure Patrons

People

PD personnel was not able to post DR before the count

DR not yet returned to Logistics PD for posting before the scheduled inventory count

FG currently being delivered to customer

As per customer's schedule

Insufficient SAP inventory

Newly produced FG not yet transferred to FG Store location


No created FGTR (Production)

Reconciliation of FG was not made on-time by TPL, PD and Production

Agreed schedule of reconciliation by TPL, PD & Production was not followed Real time posting

was not strictly implemented (Production- within 24 hours from date of Production)

Real time posting is not strictly implemented and included in the procedure of Production

No penalty for late posting of FGTR

People

PD personnel was not able to post DR before the count

DR not yet returned to Logistics PD for posting before the scheduled inventory count

FG currently being delivered to customer

As per customer's schedule


Newly produced FG not yet transferred to FG Store location Recoveries from HFI were

being delivered to customer before posting to FG storloc

Recoveries from HFI were being delivered to customer before posting to FG storloc

FGTR was not yet prepared before the delivery

Not being prioritized

Engaged in other activities

FGTR was not yet prepared before the delivery

Real time posting is not strictly implemented and included in the procedure of Production

People

Production personnel was not able to post the FGTR of recoveries on time

Accumulated FGTR over the weekends needs time to verify before posting

Documents of recoveries in conflict with database and actual

Database not regularly updated (production)

Production Staff engage in other activities

Lack of Production Staff personnel to do the database updating and FGTR posting regularly

People

Made an error in inputting the correct quantity in SAP

Quantity inputted in SAP is less than actual quantity received

Quantity inputted in SAP is more than actual quantity receivedTPL acknowledge the quantity of FG in the FGTR without counter checking


Status of the pallets reflected in the POR are not clear if HFI or Good

Manual writing (sample attached)

Not all copies of the POR (Prod., QA, TPL) are being updated. (see attach sample)

Updating of the POR was made after segregating and distributing the copies (Prod., QA, TPL)

People

Made an error in inputting the correct quantity in SAP


Quantity inputted in SAP is more than actual quantity receivedTPL acknowledge the quantity of FG in the FGTR without counter checking

Quantity inputted in SAP is more than actual quantity received

Status of the pallets reflected in the POR are not clear if HFI or Good

Manual writing (sample attached)

Not all copies of the POR (Prod., QA, TPL) are not being updated. (see attach sample)

Updating of the POR was made after segregating and distributing the copies (Prod., QA, TPL)



People Product

Procedure Patrons

Product

DR was not immediately returned by Customer

Schedule of unloading was delayed

Expired Cans not counted but still on SAP

For write-off . Waiting for approval.

Separate count



People Product

Procedure Patrons

Procedure


Newly produced FG not yet transferred to FG Store location Recoveries

from HFI delivered to customer but not yet posted to FG storloc

Late confirmation by Production Personnel


No created FGTR (Production)

Reconciliation of FG was not made on-time by TPL, PD and Production

Agreed schedule of reconciliation by TPL, PD & Production was not followed


Real time posting was not strictly implemented (Production- within 24 hours from date of Production)

Real time posting is not included in the procedure of Production

No penalty for late posting of FGTR

Procedure





Recoveries from HFI delivered to customer but not yet posted to FG storloc

FGTR was not yet prepared before and after the delivery

Not being prioritized


Real time posting was not strictly implemented


Procedure






Real time posting was not strictly implemented (Production- within 24 hours from date of Production)


Engage in other activities

Presentation

Business

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