PROJECT IMPROVEMENTDISCREPANCY REDUCTION WAREHOUSE UT SAMARINDA
Created by : Muhammad Rheza Octavianto
Content
1
2
3
4
5
6
7
Overview
Background
Problem Identification Process Improvement
Implementation
Project Result
Conclusion
Overview
Topic Discrepancy Reduction
Average / Month < Rp. 12.000.000 (Premi)
Scope Warehouse Samarinda
Target
Timeline March 2014 – May 2014
Background
OUTGOING PROCESS
RECEIVING
Unloading
QI
Good Received
Physical Inspection
BINNING
Sorting,Allocation,BIN Card
TO Binning
PICKING
List & Label Picking,BIN Card
QC
QC Pass
PACKING
Case detail, SPB & Good Issue
Sorting Case,Allocation in Ready to
Ship Area
INCOMING PROCESS
Monitoring & Confirm TO Open
PST Process
Perpetual Stock-taking is the physical verification of the quantities of items held in warehouse.
Quantity Actual < Quantity by
SystemQuantity Actual > Quantity by
System OverQuantity
Actual = Quantity by System Balanc
e
Warehouse Process
Short
Claim Potential
BackgroundDiscrepancy National
BackgroundDiscrepancy Trend
390%166%
Based on data, there’s total 556% increase in discrepancyperformance from end 2012 to early 2014
Problem IdentificationProblem Root Cause
2013 2014
Ishikawa Diagram
Discrepancy
ManMachine
MaterialMethodEnvironment
Fictional Return
Weak coordination Lost Inspection
No monitoring & control
Wrong Procedure
No Monitoring & control about procedure
Damage
Wrong Location
Wrong Destination
Wrong Physique
Main Problem
Current Condition Root Cause Impact
Fictional Return Transaction take place just in system but in actual is zero
High Discrepancy Claim Potential
Lost Inspection When doing inspection, the number of parts is immense
High Discrepancy Claim Potential
Wrong procedure The crew skip the standard operating procedure causing misplace parts
High Discrepancy Claim Potential
All of the main cause for stock level inaccuracy explained above, happened after transaction is finished whether it is in incoming or outgoing
Process Improvement
What1. Fictional Return2. Lost Inspection3. Wrong Procedure
Audit & Control 100% after every parts transaction (H+1)
Why 1. Managing transaction control in SAP2. Minimizing inaccuracy parts
How
Who 1. Muhammad Rheza (Project Leader)2. Adi Gunawan (Member)3. PST Crew (Executor)
Where Warehouse UT Samarinda
When During March – May 2014
Cost -
Implementation (Timeline Project)
1 2 3 4 5
January 2014
February 2014
End February 2014
March 2014
April 2014
Orientation and observing Flow
ProcessAnalyze problem and root causes
Auditing Process Flow and
socialize the method
Startup project
Project runningMonth 1:
Project running Month 2 :
Project running Month 3
Evaluating result
May 2014
61
Implementation Plan (Audit Steps)
STEP 1. Download Tcode LT23
STEP 2. Download Tcode LX02
STEP 3. Audit Checksheet for Control
Implementation (Adding Process)
UNLOADING
GOODS RECEIVE
QUALITY INSPECTION
BINNING
STORAGE
PICKING
AUDIT CONTROL 100% (where transaction take place both
system and actual)
PST
Project Result
1. Amount Discrepancy Send to BA after project implementation is Rp. 0 (Zero) in each Month
2. Discrepancy Short decreasing in alarming rate comparing before project in Average / Month Rp. 264.212.488 to Rp. 0 after implementation
Before During After
Conclusion
By implementing this improvement, Samarinda Discrepancy performance :- Total item and amount different send to BA during the project is down to Zero- If continued consistently, the amount of Discrepancy in the following months can be decrease below monthly discrepancy premi (as target)
1. Observing and Auditing Process flow in following warehouse that needs improvement is necessary regarding which method that is most suitable for
application because each warehouse has its own work culture
2. Standarization for all warehouse operate under HMU is necessary to secure company’s revenue that potentially under threat because of discrepancy problem
3. Warehouse Officer that directly responsible for the project should be given reward or new responsibility to spread the knowledge to surrounding warehouse
in their area under Head Office supervision