Project REPORTSTORE MANAGEMENT

July 15, 2015 Shubham Yadav shubhamiit@hotmail.com

Contents

Problem statementAcknowledgements..Existing storeRequirements for new store..Ways to meet requirements...Meeting requirements and establishing storeRules and responsibilities..Ensuring Physical security....Scrap Management....

Problem statement:

Existing locker room is to be converted into a separate store for repair components used in injection moulding shop. This project involved developing a new store from scratch.For this purpose necessary requirements are considered on basis of existing store, with that some new features are incorporated

New store requires several features like replenishment, borrowing, maintaining efficiency of parts used. For this purpose a software may be used like oracle-based used in existing store, which provides these features, or several modules can be designed each designated for special purpose.

Since existing locker room uses a MSIL owned oracle based software, same will be used for this new store, as development of new will not be economical sound and will not reach breakeven point.

This project involved studying existing store and propose step by step methodology to design mew store, with required features and predict possible shortcomings and problems which can be encountered in nearby future and propose solution/ remedies to those problems

Acknowledgements

First, I would like to thank Mr. Mahesh Yadav for giving me an opportunity to do my training in this prestigious organizationI would like to acknowledge contributions of Laxmikanth P. for providing me guidelines and scope for this project. I would also like to thank Mr. Ramandeep Singh for guiding me through this project and establishing clear objectives.

. I would also like to thank all senior members and workers of Plant Maintenance for having guided and encouraged me throughout the duration of the projectI would also like to show my sincere thanks to my fellow intern Anant govil, whose many suggestions were important

Existing store

Majority of features and system is based on existing store of Injection moulding shop which provides parts for mould.

Features of existing store management system which, we can say is a modified version of ERP (enterprise resource planning) software category customized to needs and requirements of Individual shop in MSIL are:

1. Inventory management2. Electronic-bar code management system for the existing inventory items3. Replenishment4. Checking in of replenished parts5. Maintenance of Stock Records.6. Stores Accounting.7. Inventory control.8. Forwarding replenishment request.9. Item usage10. Continuous review of inventory11. Inter department borrowing of items12. Time tracking of item used13. Manual checking in and checking out of items14. Manual filling of time tracking details

The software used for the purpose is oracle based software which can be further customized if situation demands so.

Requirements for new store

1. clearing space and dividing space for items2. Identification of all materials stored.3. establishing inventory4. bar code assignment5. forwarding request for replenishment6. replenishment7. Receipt of incoming materials.8. usage9. continuous review or periodic review10. Inspection of all receipts from suppliers.11. Storage and Preservation.12. Materials Handling.13. Issue of materials to users within the organization.14. Maintenance of Stock Records.15. Stores Accounting.16. Inventory control.17. Stock-Taking.18. Submission of Management Information Reports.19. inter department borrowing20. resources consumed per unit amount of work and is acceptable21. Tracking which and how much resource is used by single individual.

Ways to meet requirements (exploring alternatives)

Above mentioned requirements can be achieved through many alternatives.

1. ERP like software: Enterprise resource planning software can be used which is connected to central store, benefit of this kind of store is that everything is automated, thus it saves money in long term and increases efficiency and retrieval drastically.

2. Records in the challans/Invoice with concerned authorities: materials management can also be done manually by keeping receipts, invoices and maintain written records manually. This, alternative is very time consuming and is very less efficient.

3. Periodic review: When considering time when order should be placed , we have 2 alternatives , out of them one is periodic review in which, stock is monitored continuously and it reaches certain quantity, replenishment request is forwarded.

4. Continuous review: Second alternative is periodic review, which is less expensive when compared to continuous review. In this model quantity of item is checked after particular interval of time and if quantity reaches below certain level order is placed or replenishment request is forwarded.

Meeting requirements and establishing store:

1. Clearing space for designated purpose: This step will involve clearing existing locker rooms and making space available for store

2. making list of items, which will be available: This step will involve making list of items which will be available in store and quantities of all those quantities, based on usage of those items

3. Assigning space to items: this step will involve assigning fixed space for storage of particular item, which will be based on quantity that will be required, urgency/ damage if item is not out of stock and needed, also on size of that particular item.

4. making storage space for each item: This step will involve making storage units for particular set of items on the basis of assigned space and then placing them so as to increase storage and efficiency ( considering special requirements [if any] for a item).

5. Assigning bar code to each item: This step will involve assigning bar code for particular set of items, which will facilitate in easy replenishment, forwarding replenishment request and easy check in of stock.

6. Replenishment request and filling of inventory: This step will involve first determining amount of stock required for each item, which will be determined by EOQ model( which will consider whether ordering model will be periodic review or continuous review) and then forwarding request for replenishment to central store after which will come filling of inventory in space allocated above.

7. setting up working software for this designated task and this software will handle issues like: This step will involve setting up software, one which is used in many existing store, which will handle functions like

a. forwarding request for replenishment b. automatically updating inventory when items are checked in c. maintain records of who is taking an item, done by employee's I card d. track inter department borrowing.

Rules and responsibilities

There should also be responsibilities and they must be divided among employees, to ensure better and smooth working of store, these practices are as follows:

Management 1. Lay down in guidelines the policies and procedures for inventory management, including: receipt, secure storage, replenishment, and disposal of inventory items; conduct of inventory checks, handling of discrepancies, amendment of inventory records, and handing over of stores, etc.2. Clearly specify: the authorities for inventory management activities (e.g. issue of stock, disposal of inventory items, writing off and amendment of inventory records); and the roles and duties of the staff responsible for various inventory management activities (e.g. storekeeper, store supervisor, procurement and accounting staff).

Store Managerial Staff1. Put in place a computerized inventory management system, if resources allow, to maintain accurate inventory records and to facilitate control and supervision, such as: search keys for identifying an item or a batch of items, including the item code and batch number, and data such as description of the item and its location in the store; stock movement transactions, including dates, quantities of incoming or outgoing items, voucher references, the names of issuing or receiving staff, etc.; and stock information such as the expiry or validity date, and stock balance of items in store.2. Install a bar-coding system or radio frequency identifier technology to further enhance control of inventory items, if resources permit inventory items checklist of recommended practices3. Setting up an Inventory Management System

Store Supervisor

1. Segregate the following duties as far as practicable: purchasing duties from inventory control duties; storekeeping duties (duties involving physical access to inventory) from inventory record-keeping duties; storekeeping duties from inventory disposal approving duties.

Ensuring Physical security:

1. Keep inventory in an adequately secure store room equipped with electronic access control or a lock with the key kept by only the storekeeper 2. if an electronic system is used, ensure access is controlled by personalized security passes so that the identity of the staff accessing the store is logged for future checking if necessary3. if necessary, install a CCTV system with recording function to monitor movements at the store entrance and inside the store4. If cupboards or cabinets are used for storage, ensure the keys are under the control of a designated staff member to enhance accountability and the duplicate keys are secured in the same way as for the store room.5. restrict access to the storeroom to designated staff members only6. give personal access codes or passes to the staff strictly on a need basis and instruct them to safeguard their own codes/passes7. change the access codes whenever there are staff changes8. require the store room to be locked at all times except when in use or under guard

Scrap Management:

Scrap is inevitable substance in all manufacturing units. Scrap has a value and must be treated as any other stores item. It should be accounted for properly and stores personnel are responsible for it. Following steps should be taken to achieve that goal:

1. Collect, sort and prepare the scrap metal and waste. Each has a different value and if all are mixed up, their value may fall very low. Different items will have their own buyers.

2. Items like empty cement bags, paper, card board boxes, wood shave, GI, MS, Steel, Aluminum, copper, plastic and wood be salvaged, converted into scrap, When considerable quantity is accumulated these can be disposed off in the local market, or reused in any other suitable way.

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