Professional Documents
Culture Documents
March 09
Agenda
Purpose
Features & functionality
Business process considerations
Setup & configuration
Process
Special considerations
Summary
2
Purpose
High level understanding of how Oracle cycle counting works
3
Features & Functionality
Part of Inventory module – One of 3 ways to count
Physical Inventory
Replenishment Counting
Cycle Counting
Automates periodic cycle counting
Identifies criteria for automating
Provides variance reporting
Allows approval control
Supports serial & lot control items
4
Features & Functionality (Cont’d)
Allows manual adjustments
Fully integrated with cost accounting methods
Integrated with ABC Analysis
Required to leverage full functionality of Cycle Counting
Provides ability to classify items into ABC ranks
Flexibility to update & change “on the fly”
Target inventory to count by Subinventory or organization
Facilitate recounts & rejects
Reporting & Analysis of transactions
5
Business Process Considerations
What type of business?
Manufacturing
Distribution
Other
What inventory accuracy is important to your company?
Business critical
Mildly important
Not important
What inventory control disciplines are in place?
World class (>95% inventory accuracy)
Above 90% accuracy
Below 90%
6
Business Process Considerations (Cont’d)
Logistics - Method currently in place
RF bar codes enabled
Bar code only
Written
Logistics - Timing of cut-off
Multiple shifts
Resources available
Data entry
Approval
Management Reporting Requirements
External audit requirements
Variance reports
Internal audit requirements
7
Setup & Configuration
ABC Analysis – First Hurdle
ABC’s of ABC’s
ABC Classes
ABC Compile
ABC Assignment Groups
8
Setup & Configuration (Cont’d)
ABC’s of ABC’s
9
Setup & Configuration (Cont’d)
ABC Classes
10
Setup & Configuration (Cont’d)
ABC Compile
11
Setup & Configuration (Cont’d)
ABC Compile Criterion
Current on-hand quantity
Current on-hand value
Historical usage value
Historical usage quantity
Historical number of transactions
Forecasted usage value
Forecasted usage quantity
Previous cycle count adjustment quantity
Previous cycle count adjustment value
MRP demand usage quantity
Use the MRP demand usage quantity
MRP demand usage value
12
Setup & Configuration (Cont’d)
ABC Assignment Groups
13
Setup & Configuration (Cont’d)
ABC Assignment Groups (Cont’d)
14
Setup & Configuration (Cont’d)
ABC Assignment Groups (Cont’d)
15
Setup & Configuration (Cont’d)
Cycle Count
16
Setup & Configuration (Cont’d)
Cycle Count (Cont’d)
17
Setup & Configuration (Cont’d)
Cycle Count (Cont’d)
18
Setup & Configuration (Cont’d)
Attach ABC Group
19
Setup & Configuration (Cont’d)
Load ABC Items
20
Count Process
Perform Full Cycle Count
Generate Automatic Schedule Requests
Generate Cycle Count Requests
Cycle Count Listing
Count items
Blind count
Record quantity
Approve & Update
Approve cycle counts
Request recount
Save & Update inventory
21
Count Process (Cont’d)
Perform Full Cycle Count
22
Count Process (Cont’d)
Perform Full Cycle Count
23
Count Process (Cont’d)
24
Count Process (Cont’d)
Update Items
25
Special Considerations
Establish timely approach
Execution is everything!
26
Summary
Determine what type of industry and counting applies
Execute properly
27
Thanks for attending
Ed McDonough
mcdonoughe@tusc.com
March 09