Counting Work In Process
two methods of cycle counting work-in-process (WIP). The method
selected depends on whether shop orders are used or not.
orders, the method of cycle counting work-in-process uses the same
logic as for inventories in stockrooms. The shop order can be
visualized as a small stockroom within the total of all the WIP.
orders are not used, then the WIP is a "four wall" inventory. In
this case, companies issue material from a controlled stockroom to
"floor" inventory. This inventory is relieved by reverse explosion
(backflushing) of the bill of material after production is reported,
in some cases after each operation but in most cases after the
product is completed. Error causes will be similar to those for shop
orders but will also include bill of materials errors,
substitutions of parts not notified to the system, and engineering
changes in process.
computer helps by minimizing manual errors of entry and arithmetic.
Lists of items to be counted can be prepared by the computer using
selection criteria too extensive to maintain in a clerical system.
support is necessary in high-part-count assembly environments where
a product exists in various states of completion between operations.
When it is necessary to report the components used in a partially
completed assembly at operation "X* the system can determine the
items added at a specific operation. The system adds the items
consumed to the work center location total to facilitate the work
center location count reconciliation.
• Linking bill of material components to the operation where they
are used is accomplished by carrying the work center in the
component detail record. This feature provides material
"backflushing" capability through work center count reporting.
• In a Lot control/Traceability environment it is essential to
maintain the integrity of the lot number of an item with its
location. This implies that when lot controlled items are cycle
counted a three way match is required between count, lot numbers and
their locations. This is a mandatory requirement of systems that
provide cycle counting functionality of lot controlled inventory.
Management reports can be prepared by computer summarizing
historical information on adjustments, variances, items counted,
etc. These reports can be used to monitor the effectiveness of the
cycle counting system.
Phase of Cycle Counting
phase of cycle counting is the elimination of the counting process.
Two methods have been developed to achieve this Utopian goal.
counts are when a stock picker removes the last of an item from the
shelf. A pre-formatted document is filled in by the stock picker,
giving part number, location of a random location part, time, and
date. The stores supervisor checks at the cutoff time if more of
this part has been received between the count and the cutoff. If
yes, the zero count card is destroyed. If not, it is processed as a
valid cycle count.
method applies to serialized loads or batches, which are uniquely
identified, and issued only in these batches. A small file of a
portion of these serialized loads is created as a control group
monthly. All transactions are processed against the inventory
records as normal but are also tested against the small file of
serialized loads. Any time a transaction carries a serial number
that matches the small file, the transaction's details are compared
with the inventory file. If they match, that is a good cycle count.
If they don't, an error is indicated requiring analysis and
reconciliation is indicated. At the end of the month, cycle count
only those items on the small file that didn't have transactions