Goods issue procedure, control and documentation
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This document discusses procedures for issuing goods from a storehouse in an efficient manner. It describes various methods for authorizing issues, identifying requirements, picking orders, timing issues, and documenting the issuing process. Different types of material issues are also outlined such as issues of capital expenditure, direct materials, components, and indirect materials. The document stresses the importance of monitoring issue functions through regular checks and updates to stock records to maintain control over available inventory levels.
Goods issue procedure, control and documentation
- 1. GOODS ISSUE PROCEDURE, CONTROL AND DOCUMENTATION Navindu Munidasa MSc Logistics and Supply Chain (UK) (Reading); BSc Operations and Logistics Management (UK); Dip in Computer Hardware and Networking ; Certificate in Motor Mechanism (CGTTI); Certificate in Workshop Practices (CGTTI)
- 2. INTRODUCTION One way of judging efficiency of a supply organization is by the standard of service provided by the Storehouse to the users. Service can be judged in several ways; a. By the speed with which issues are made against demands. a. Manner the storehouse is organized b. The stores layout c. Arrangement of stocks according to popularity d. The methods of handling materials and moving them e. The efficiency of the storekeeper and the stores staff b. By the percentage of items not executed owing to stock outs a. The efficiency of stock control b. Recoupment c. Purchasing d. Receiving e. Documentation f. Preservation in the store
- 3. AUTHORIZATION OF ISSUES • The storekeeper should check the requisition / indent has been duly authorized by an officer of the user department nominated for the purpose. Specimen signature of the authorized officer and their designations should be available with the store staff to verify the authenticity and genuineness of the requisition. • In the case of a storehouse located within the organization itself, for example in a production complex, construction project etc., stores can be with drawn on a signed document, a verbal instruction or a routine arrangement, as authorized by Management.
- 5. METHODS OF ORDER PICKING 1. Discrete Order Picking The most common type of order picking because it is basic and simple to understand. When employing a discrete order picking methodology, one order-picker picks one order, one line at a time. Additionally, there is only one order scheduling window during a shift. Therefore, orders are not scheduled and may be picked at any time on a particular day. The advantages of using this method of order picking are: simplicity, ideal for paper based picking, provides fast response time for order fulfillment and can easily track order picker accuracy. However, this is the least efficient methodology as it requires a significant amount of travel time compared to other methods. (This is where a cart with built in power can help) 2. Zone Picking Order pickers are assigned a specific and physically defined zone in the pick area. The picker assigned to each zone is responsible for picking all of the SKUs located in the zone for each order. In the event that an order requires SKUs that are located in multiple zones, the order is filled after it passes through each zone. This is also referred to as the "pick and pass" methodology. In zone picking there is only one scheduling period per shift. This means there is a cutoff point for orders to be queued into the order picking process and any order received after that cutoff point will get fulfilled during the next shift.
- 6. 3. Batch Picking Batch picking is when one picker picks a group, or batch, of orders at the same time, one SKU at a time. This is advantageous when there are multiple orders with the same SKU. When that occurs, the order picker only needs to travel to the pick location for that specific SKU once, in order to fill the multiple orders. The main advantage for choosing this method is reduced travel time, which increases productivity. Batch picking is often used when the typical order profile has only a few SKUs (under four) and the SKUs physical dimensions are relatively small. Just as in zone picking, batch picking requires only one order scheduling window per picking shift. 4. Cluster Picking Cluster picking is a methodology of picking into multiple order containers at one time. The containers could either be either totes containing order batches, discrete order shippers, or discrete order totes. There are two main piece picking systems that benefit from the use of cluster picking: Pick to cart operations, in which, a cart would be loaded with multiple totes or shippers and the picker will make one pass through the pick zone and sort to the pick containers, thereby avoiding unproductive travel. Vertical lift modules (VLM) or carousel operations utilizing the independent zone picking technique, the picker would setup the pick container batch, this would initiate the mechanized pick modules, and the items would be sorted to the proper pick container. This technique is used to optimize the VLM & carousel pods by limiting the number of machine cycles.
- 7. 5. Wave Picking Wave picking is very similar to discrete picking in that one picker picks one order, one SKU at a time. The main difference is the scheduling window. In discrete picking, there is not a scheduling window whereas in wave picking there is. Orders may be scheduled to be picked at specific times of the day, which is usually done to coordinate and maximize the picking and shipping operations. 6. Zone-Batch Picking This is a combination of methods in that pickers are assigned a zone, just like traditional zone picking, however they are also directed to batch pick within their zone. Since both zone picking and batch picking have a scheduling window, then zone-batch picking does too. 7. Zone-Wave Picking Zone-Wave Picking is a combination of methods in that pickers are assigned a zone and each picker within their zone picks all of the SKUs for all orders that are stocked in their zone, one order at a time with one scheduling window per shift. 8. Zone-Batch-Wave Picking The most complex combination of all of the order picking methodologies. Each picker is assigned a zone and picks all SKUs for orders stocked in the assigned zone. Additionally, the picker picks more than one SKU at a time and there are multiple scheduling windows per shift.
- 8. TIMING OF ISSUES • In order to ensure a smooth flow of work and execution of demands without delay, it is advisable to phase the receipt of requisitions to be received by certain dates and also the issues during prearranged times. • As a general rule, the storekeeper should try to meet the convenience of users, and restricted times of issue should be applied only where it is necessary to avoid uneconomical peak loads of work in the storehouse, and to prevent unnecessary waiting time on the part of those sent to collect materials.
- 9. METHODS OF ISSUING STORES Issue on request Immediate Issues on presentation of an issue note by hand. Issue made after the receipt of an issue note by hand or post. Immediate Issues on verbal requests only. Scheduled issues to production • Production staff collecting them from the storehouse • Delivered by the storehouse staff to a point in the production line at which the process of manufacture is to begin • Transferred into open access store within the production shops Imprest Issues •Certain types of materials in given quantities is approved to be held either in a sub- store or on a production line •At the end of a given period the user concerned prepares a list of the materials he has consumed during that time, and presents an appropriate issue document at the main storehouse Loan Issues •Required in a maintenance department for short periods of use at frequent intervals Allocated Issues •Materials may be received on a programme delivery basis and held for use only by the production line for which they have been purchased Free Issue to Suppliers •In certain private organizations and in Government Departments, material parts, tools, etc. are issued to contractors in connection with products which are being manufactured by them.
- 10. MATERIAL ISSUING Issue of CAPEX Issue of Direct Material Issue of Components Issue of Indirect material Issues to Contractors Allocated Issues
- 11. DOCUMENTING ISSUES • Two alternative systems are available for making issues : 1. Pre-posting Under the pre-posting method before issues are made the number of the requisition, quantity issued, etc. are entered in the stock control records etc. and it is sent to the storehouse for issue of the items. When stock levels are gone down, supply officer or stock controller can allocate or ration stock on a priority basis and thus exercise strict control over the available stock. 2. Post-posting Under post-posting it is possible for issue to be made without being duly posted in stock records.
- 12. MONITORING OF ISSUE FUNCTIONS • The Stores Manager should clearly lay down the procedures (with appropriate flow charts) to be followed by the Issuing officers and storekeepers checking the issuing of stores against authorized requisitions / demands. In addition he should give particular attention to following matters. 1. Regular checks of quantities requisitioned to ensure that the quantities demanded are not excessive and are reasonable. 2. Issues are correctly measured, weighed, etc. 3. Issues are properly posted in the relevant stores records and the stock balance up-dated. 4. Where issues have to be dispatched by rail, documentation and booking of wagons where necessary should be done well in time. There should be effective liaison with appropriate railway officials. 5. Packing cases/containers are sound, strong enough and are securely fastened with hoop iron to withstand rough handling and transport at various stages of transit from the issuing ware houses to the premises. of the outstation consignees. This is essential to minimize damages, pilferage, etc.
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