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Store management Presentation Transcript

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1. Management of Stores Prepared By :Abhinav Singh 2. Introduction Store is a place where excess material is kept which will be used as and when required. Loss of items, deterioration, obsolescence and inadequacy [of what is stored to what is needed] are treated as „part of life‟. 3. Introduction Store management is “ to receive materials, to protect them while in storage from damage & unauthorized removal, to issue the material in the right quantities, at the right time to the right place and to provide these service promptly and at least cost”. 4. Objectives of store In the chain of internal customers and suppliers, stores has several internal customers. As a matter of fact all functions of management are internal customers to stores. Customers as usual expect Quality Cost and Delivery from every supplier. Stores also have to deliver these customer expectations. In the process of discharging this obligation Stores perform some activities that are functions of Stores. 5. Objectives of store Minimizing cost of production through minimizing cost on materials Maintaining the value of materials Service to user departments Establishing Co-ordination with other departments Advising materials Manager 6. Functions of Stores1. Receipt2. Storage3. Retrieval4. Issue5. Records6. Housekeeping7. Control8. Surplus management9. Verification10. Interaction & coordination 7. Receipt Any item of goods or material that enters the organization always enters through the stores. Similarly, every item unless specifically excluded, has to leave through the store. Stores is the final account keeper of all materials. Material sent by any supplier after the security clearance comes to the stores. Stores check the document carried by the carrier, known as Delivery Challan, against the copy of the Purchase Order placed on the supplier by the organization. 8. Receipt Once the adequacy is established and quantity is verified the material is sent for testing for quality parameters. Some times quality control tests are elaborate and time consuming. If the policy of receipt is to unload the material subject to quality control acceptance, it is cleared for unloading. Unloaded material is kept on the hold if it not yet cleared by quality control department. If the material is rejected it is sent back to the supplier after clear 9. Storage Once the unloaded material is approved by the quality control department, as per the quality plan in the quality system, it is moved to a specific place in the stores layout. The material is so stored that it becomes easy to retrieve and issue subsequently. Storage should also ensure protection against deterioration, damage and pilferage. 10. Storage  Detailed system is adopted for location and labeling of items while in storage. Storage plan is made keeping in mind, 1. nature of the product- physical state, toxicity, inflammability and other hazards 2. volume and weight- heavy or light 3. movement frequency- fast moving or slow moving 4. point of use 11. Retrieval Easy and quick retrievability of items that are demanded by the internal customers. Easy identification, maximum space utilization and minimum handling are key factors to retrieval functions. It is common knowledge in many of the companies

issue and balance. 12.  Bin card is placed on the bin in which items are stored. forecasting and purchasing. Verification Stock verification to eliminate gap between information and physical stock. Centralized or decentralized storesorganization Centralized stores concept is to store all items at a central place and control materials movement from this central place. 20. Basic records of store are bin card and stock register. Surplus management Effective disposal system for unneeded material to reduce inventory cost and proactive measures to eliminate deterioration and obsolescence. Effective control puts into effect management objective of „no shortage and no excess‟. This gives information about receipt. 14. Centralized Store Figure . Obsolete items are good in all respect but have no useful role in the company due to changes that have occurred in the course of time. it is said that in India nearly Rs. and also due to bad manufacturing. Whereas Decentralization concept is moving the material to the respective consumer function or directly to the points of use. Issue  Fulfilling customer demand for the item in minimum time. 17.  stock register gives all the information in the bin card and also the value. Any changes in consumption pattern or replenishment pattern are closely monitored for corrective action.  An internal customer doesn‟t pay the price but he has to fulfill requirement of authorization for the demand. 18. Records Maintaining records of receipt and issue. Housekeeping Maintenance of spic and span cleanliness in the store and ensuring principle of Place for Everything and Everything in its place is fully implemented.  A duly authorized indent or requisition for the item is the key 13. quality control and engineering functions is obviously needed in the discharge of the functions discussed so far. 19. Updating the stock levels as per movement of materials. This causes hold up of production process and avoidable urgent purchase of out of stock material. surplus and scrap items. Good housekeeping ensures satisfactory work practices 15. keeping quality high and cost minimum is issue. Hence correct stock position through verification is critical to ensure „no shortage and no excess‟ for the item. production. Surplus management Surplus items are those that have accumulated due to faulty planning. Control Taking measures to ensure material plan is being adhered to. Hence a usage value is associated with these items. Besides.           that after hours of searching for the item is declared to be out of stock. 22. In stores some items are maintained as stock items. 16. 2500 crores are tied up as obsolete. This function takes place as per established retrieval system. boring drilling etc. Types of Stores  Centralized store  Decentralized store 21. Interaction & coordination Very close interaction between Purchasing. every management function being an internal customer interaction is very important. Scrap is wastage generated due to processes like turning. It also becomes necessary to coordinate the flow of material samples and information through a network of departments for performance of stores functions. Material movement is watched to identify nonmoving material for disposal. The stores triggers the procurement cycle for such items when a predetermined reorder level is reached.

 Labor utilization may suffer due to low store activity level. storage and issue of materials is called as layout of stores. Refrigerated materials store 32. Material handling will be easy. Advantages of centralized store The variety of goods can be supplied to all users from one small location. general stores5. Components store 3. More staff will be required for shifting & transportation of the materials to various production units. Work in process store 4. central store4.             23. Features of decentralized storesorganization1. the material are properly maintained. Maintenance of optimum stores8. Wastage and deterioration of materials will be less. Customer friendly3. Physical movement of the material is only with authorized documents only. Stores Layout Physical arrangement of storage facilities for efficient receipt. Factors affecting stores layout Type of Stock Volume of stock Availability of space Physical factors 35. Decentralized Stores Figure 27. Efficient layout for stores5. Less manpower will be required. It involves minimum of handling and optimum utilization of space. Effective supervision and control. Entry into the store is restricted authorized persons only. Some other types of storage As per types of the materials stored 1. Fewer production stoppages4. Semi finished goods store 6. Control passes on to the operations department . Store System Closed door system: the stored material is held under lock and key. Better control of materials is possible. Elaborate documentation 24. sub stores 33.2. 29. Consumable materials store 31. Better handling technology6. Tools store. Better inventory checks7. Cont… As per function of the storage2. Less chances of bottlenecks and delays. receiving store3. Cont… As per nature of the materials stored 1. Hazardous materials store 4. Record keeping is difficult. Maximum security and tight control on movement are features of this system Open stores system: In this system material is stored near point of use and there is restriction on consumption. In a properly arranged store. LPG store 2. 26. 30. 34. Features of centralized storesorganization1. Visual management is easier 28. Advantages of decentralized stores Reduced material handling and associated cost. Convenient for every department to draw materials. die crib 7. Reduced personnel requirement4. Chemicals store 3. Issue at single point reduces cost of issue3. Finished goods store 5. Less transportation time. Reduced handling2. 25. Disadvantages of decentralizedstores Coordination and control of all decentralised store is a challenge to management. Raw Materials store 2. Disadvantages of centralized store It may not be suitable for large manufacturing concern.