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Study Of Existing Inventory System

Benefit From Gray Arrow Kaytek Business Consulting / IT Services

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Down Arrow For one of our soap contract manufacturing customers, Kaytek briefly reviewed their existing manual materials and Inventory system. Our brief report on the same is published below.

Down Arrow 1.0 - Brief Customer Requirements were stated as follows :

Gray Arrow Their operations and business lines were briefly explained to us.

Gray Arrow Currently using Accounts Batch Processing System developed in Cobol.

Gray Arrow Was a looking for a Cost-Effective Customised Solution.

Gray Arrow The proposed Inventory system should have 10-11 characters for Item Codes. Most of the Inventory systems seen by them had only 5-6 characters item code length.

Down Arrow 2.0 - The following points were discussed as regards the current manual systems and ways of working.

Gray Arrow The current Inventory Procedures and Work Practices can be improved.

Gray Arrow Both the Warehouses ( Godowns ) need to be cleaned up and Proper Storage Areas need to be identified, allocated and respective materials assigned to the same.

Gray Arrow Ensuring Disciplined Inventory Practices by Plant Department workmen would be very important for a proper system to be effective.

Gray Arrow Kaytek had a look at some of the current Inventory document manual formats and suggested that they may need to be enhanced / redesigned from the computerisation point of view.

Some of these documents were Inward Challans (Goods Delivery Notes), Issue Vouchers, Purchase Requisition Forms, Registers, etc.

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Gray Arrow Kaytek also suggested not to include Location Code in the Item Codification Schema.

Gray Arrow There is a separate store for Raw materials and Finished Goods.

Gray Arrow Many times, materials for other factories (outside Mumbai) are sometimes kept at Stores for transfer purposes. There is no documentation for overnight temporary storage cases.

Gray Arrow There is no Cardex System.

Gray Arrow At times the materials from Stores are taken without permission from the Stores people.

This specially happens at evenings / night when the Stores Staff are not available.

This practice needs to be carefully monitored and stopped.

Down Arrow 3.0 - The following were the additional points discussed.

Gray Arrow Written Purchase Order System has been recently started. Concept of Work (Process) Orders does not exist.

Gray Arrow Kaytek mentioned that changing people's attitudes as regards Maintenance of current Status Quo Situation and effective handling of their cynicism towards any proposed system change was always a challenging phase of computerisation.

It was a difficult but not an insurmountable problem.

Gray Arrow Kaytek to briefly document the meeting discussions & send the same to their office.

Gray Arrow Customer Representatives to visit Kaytek Office and have a look at Kaytek's Customised Purchase / Inventory Solutions already developed and implmemented for other customers.

Gray Arrow Email us : Can we assist you ?

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Updated on 13th December 2007.
Created on 28th March 2006.

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