Stores Management

PURPOSE
•To receive raw materials, Components, Tools,
Equipments
And Spares and other materials
•To provide adequate and proper storage and preservation

to Various items
•To supply materials to production centers and
departments
•To account issue of materials
•To minimise obsolescence, surplus and scrap through
proper codification, preservation and handling
•To highlight stock accumulation, discrepancies, abnormal
consumption
•To assist and support material planning and purchasing
 Stores Management
Stores Location,Planning and
Layout
• Near Production Departments
• To minimize number of handlings and ensure timely
supply
• Easy movement of materials to production centers
• Closed or open or dehumidified storages for the type of
materials
• Sufficient space for the type of materials to be received
and Stored
• Type of handling equipments to be erected and used
• Usage of vertical space
• Fixing of Shelves, racks, bins and pallets
• Type of cranes EOT, gantry cranes,Mobile cranes
• Aisle space, Lighting, ventilation and sufficient Working
space for individuals
 Stores Management
Stores Location,Planning and
Layout
• Supporting aids like weighing machines, measuring
instruments etc
• Safety aspects relating to maintenance of
equipments
in cranes, Power trolleys, Hydraulic trolleys etc.
• Flooring and roofing of Stores
 Stores Management
Regular
Activities
Receiving Materials
•Checking for PO and Excise information
•Check for Quantity and Quality of materials
•Create Stores Receipt voucher in system
•Coordinate for Inspection of materials by inspection
authorities
•On acceptance store materials in identified locations
•Store rejected materials separately with identification
•Send SRV and rejection information to suppliers
•Send Excise Invoices to accounts for availing CENVAT
•Preserve records for audit verification
 Stores Management
Regular Activities
cont…
Issue of materials
•Receive material requisition slips or component requisition slips
•From production centres and other departments
•Create progress number for such requisitions in system/register
•Identify materials from stock and note down details like melt
•Number or heat number
•Coordinate with Inspection for customer compliance
requirements
•Take attestation cards from Quality
•Issue material with attestation card
•Post issues in system to reduce stock
•Keep issue vouchers for audit verification
 Stores Management
Regular Activities
cont… of materials
Storage
•Store accepted materials in identified locations or in bins or
racks
•Store high cost low volume materials in lock and key
•Count stock of materials before and after issue of materials for
•Correctness of stock
•Keep separately materials identified for issues which are under
•Inspection
•Check condition of materials periodically
•Devise mechanism to act on self life materials in stock
•Segregate self life expired materials and take disposal action
•Store rejected materials in separate location
 Stores Management
Report
s
•Consumption data of materials on yearly basis
•Inventory reports monthly basis
•ABC analysis of materials
•Details of Surplus materials
•Rejection details of materials
•List of Pending receipts for acceptance
•List of Pending issues for speed up issue of
materials
•Details Obsolete spares for disposal action
•Non receipt of excise invoices from suppliers
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Flow of costs

1. FIFO Method
2. LIFO Method
3. Average COST method
4. Fixed Price or Specific Cost
Method
 Stores Management
FIFO Method

Materials issued from oldest stock and costs are allocated

According to the oldest cost recorded in the materials accounting
Of the stores ledger.
Reflects current value of inventory on hand
LIFO Method
Most current prices should be charged for the cost of materials
Results in unrealistic inventory of materials
Average Cost method
1. Simple arithmetic
average
2. Weighted average
3. Moving average
 Stores Management
PROCEDURE
1.Receipt Accounting of materials
Address exceptions – Invoice missing
- Direct supplies to shops &
regularizing
- Test Certificate not received
2. Co ordination with inspection and user departments
- Spreading of materials for inspection by QC and
customer
- TC clarifications with Purchase and Vendor
3. Stocking of materials with identification
4. Supply of materials to production, sub contracting
vendors and other departments
5. Creation of Loading advice slip
6. Quantity posting in system
 Stores Management
PROCEDURE
7. Coordination with inspection for attestation
8. Posting of materials consumption to production or
departments
9. Verification of physical inventory
10. Internal audit of receipts and issues of materials
11. Quality Surveillance of materials
12. Disposal of self life expired materials
13. Receipt of Scrap materials
14. Segregation of scrap materials
15. Auctioning through MSTC
16. Delivery of materials
17. Disposal of scrap materials
 Stores Management
DOCUMENTATION
1. Printing of Stores Receipt Voucher
2. Printing of Rejection Information Slip
3. Printing of LAS with Annexure
4. Printing of gate pass
5. Printing of Excise Invoice
6. Printing of Sale issue note
7. Printing of sale order
 Stores Management
AUDITING
1. Internal audit for
1. Quality management system ( ISO-9001)
2. Environmental Management system ( IS0 14001)
3. Occupational health and Safety assessment Series
(OHSAS) (ISO 18001)
4. Material audit
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Disposal of
Scrap
Limited Tender
Depending on the emergency to dispose
Depending on the nature of item
Known and licensed sources are
addressed
Open Tender
Depending on the nature of
item
Based on the need
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