Obsolete Material Review

01/26/2021
 Obsolete Material Flow
• Plants review PFEP and inventory needs, then submit material list request
Plant of Obsolete material currently in stock at there facility
requests

• Supply Chain reviews list for any incorrect information and makes notes of
Review follow up questions to review with the plant to finalize the informaition
Requests

• Finalized review with plants to correct any information on the listed

Finalize material before doing deep dive into the obsolete list
Review

• Supply Chain reviews each plants listed items to determine next steps in
Supply Chain removing obsolete material from the facility
Review

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 Obsolete Material Flow
• Engineering to review obsolete after Supply Chain makes suggestions on
material, to make sure obsolete material can not be re engineered to be
Engineering
review used elsewhere

• Review with Finance and Corporate team on suggested actions to take

Corporate place
review

• All 3 reviews completed, give approval for actions

Final
Approval

• Instructions on how to dispose of, transfer, or sell material is sent out to the
Actions
plants with the list of obsolete material

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Focus Points
• Material that is obsolete at the plant and unable to be used at any
other plant.
Scrap • Material that may be used at other plant or altered, but cost not
cost effective

Consume by • Material that can be used by another facility, or altered to be used

at another facility
another plant
Paint a stocked • Material that can be painted to an in stock color to be used in
production, only if cost effective
color

Supplier Buy Back • Material that could be purchased back from a supplier

• Material that could be purchased by the customer transitioning

Customer Purchase away from the material only being used by that customer

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Initial Review
• Plants total in obsolete Plant Plant Request Supply Review Difference
material requests was
PA $196,339 $173,858 $22,480
$1,074,121.61
WI $301,350 $195,842 $105,507
• After initial Supply
Chain review the total TX $12,379 $12,379 $-
reduced to
$718,016.62 FL $432,474 $252,256 $180,218

• Initial review reduced CA $42,119 $27,576 $14,543

Obsolete material
requests by TN $53,123 $11,572 $41,551
$356,104.99
ND $36,333 $36,333 $-

$1,074,121 $709,820 $364,301

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Deep Dive

What is the material? • Is the material truly Obsolete

Can it be used by • Is the material currently being used in production at

another facility? another facility and is it cost effective to ship

• Can the material be recoated to a stock color currently

Paint a stocked color being used in production and is it cost effective to recoat

Can it be • Can the material be used or altered to be used in another

reengineered? application of production

Can it be sold to • Is an existing customer interested in purchasing the

existing customer? material

Can it be sold back to • Is an supplier of the material interested in purchasing the

supplier? material back for stock

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Customer Purchase and Supplier Buy Back

• Plants total in obsolete Customer Purchase / To Be

Plant Plant Obsolete Supplier Buy Back Scrapped
material $709,820.58
PA $173,858 $88,224 $805,634
• Customer and supplier WI $195,842 $- $195,842
purchase total TX $12,379 $935 $11,444
$180,483.50 FL $252,256 $91,324 $160,932
CA $27,576 $- $27,576
• Reduction of Obsolete, TN $11,572 $- $11,572
for additional review ND $36,333 $- $36,333
$529,337.53   $709,820 $180,483 $529,337

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Consume by another plant / Paint to stock color

• Plants total in obsolete

material after Plant Plant Obsolete
Transition plants / To Be
Customer purchase Re-Paint Scrapped
and Supplier Purchase PA $85,634 $5,532 $80,102
review $529,337.53 WI $195,842 $74,869 $120,973
TX $11,444 $2,127 $9,317
• Consume by another FL $160,932 $7,838 $153,093
plant / Paint to stock CA $27,576 $4,119 $23,456
color total $94,487.53 TN $11,572 $- $11,572
ND $36,333 $- $36,333
• Reduction of Obsolete,   $529,337 $94,487 $434,850
for final scrap review
$434,850.00

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 Finalized Outcome

• Plants total in obsolete

material $709,820.58 Plant Plant Obsolete Usable material Scrap Cost
PA $173,858.90 $93,756.35 $80,102.55
• Total material we can WI $195,842.93 $74,869.45 $120,973.48
use and not needing to TX $12,379.72 $3,062.13 $9,317.59
scrap $274,970.58 FL $252,256.65 $99,162.84 $153,093.81
CA $27,576.29 $4,119.81 $23,456.48
• Final Scrap total of TN $11,572.26 $- $11,572.26
obsolete material ND $36,333.84 $- $36,333.84
$434,850.00   $709,820.58 $274,970.58 $434,850.00

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Consolidate and Report out
• Consolidated all information unto a master spreadsheet .

• Spreadsheet will be sent to Finance upon finale review with

corporate.

• Work directly with Finance to complete and answer any

questions that may occur.

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Actions
• Purchasing will work with suppliers on buy back of material, and
Supplier Buy Back coordinate with plants on sending material out

• Plants will work directly with Customer on the purchasing of material

Customer Purchase requested

Consume by • Supply Chain will work directly with plants on transferring material
from one location to the other and giving the approvals
another plant
Paint a stocked • Plants will work directly with coaters to have material painted, or work
on painting material in house
color
• Supply Chain will give approval to plants on material that can be
Scrap scrapped out, recording of scrap will be done sperate from production
scrap

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