Materials Management
Cycle Counting
And
Physical Inventory
David McCusker, Senior Consultant
CISTECH, Inc.
[email protected]
Materials Management
Cycle Counting & Physical Inventory
Objectives
 To incorporates the best capabilities
from IM and MPA’s Physical
Inventory/Cycle Counting, then
expand with Power Architecture
technology
 Provide inventory tag support
 Provide bar code support
 Deliver customization capabilities to
greatly enhance productivity
Inventory Count Groups
Materials Management
Cycle Counting & Physical Inventory
Report
Options
will allow user
to tailor the
reports to their
preference!
Materials Management
Cycle Counting & Physical Inventory
Ease of Entry!
User can either enter
tags sequentially by
tag number
or...
Materials Management
Cycle Counting & Physical Inventory
Random Count
Entry by Item
OR by Tag
It’s the user’s
choice!
Materials Management
Cycle Counting & Physical Inventory
Count items will list in a ‘spreadsheet’ format
Columns may be moved, items can be changed, created, located…all
from this screen.
You’ll have a ‘window’ of opportunities!
Inventory Count Groups With
Subsets
• Single Warehouse
• Cycle Count Class
• Range(s)
– item numbers
within a Warehouse
– item classes
– stock locations
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Transaction Activity
By Timed Interval
Forced Count
Negative On-Hand Balance
Include
– Line Locations for REP
– Unapproved Locations for QC
Inventory Count Groups
• Turnaround Documents
– Both “Count Entry List” and “Inventory Tags”
– Bar Coding is available without PM&C being installed
• Two Inventory Lockdowns
– Entry On-Hand Quantity
• Captured at the time the actual count was entered
– Cutoff On-Hand Quantity
• Captured at the time the count was activated
Inventory Count Groups
• Speed Data Entry
– Random Entry
• By Item
• By Tag
• By Barcode
– Sequential Entry
• Warehouse/Location/Item
• Warehouse/Item/Location
• Tag Number
Inventory Count Groups
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Warehouse
Highlight Warehouse
File
Host Jobs
Physical Inventory
Inventory Count Groups
• Inventory
Count Entry
List
Inventory Count Groups
• Inventory Tags
Inventory Count Groups
Counting can
be entered
either by
Random or
Sequential
Entry
Inventory Count Groups
• Random count entry by
tag
• Random count entry by
bar-code
• Random count entry by
item
Inventory Count Groups
Sequential Entry is
the fastest format
but requires the
items being entered
to be in order.
Notice the Bypass Key.
Cycle Count Walk Thru
Cycle Count Code
Cycle Count Walk Thru
Transaction Compare
Transaction Activity Count
Cycle Count Walk Thru
Next Count Date
Last Count Date
Cycle Count Walk Thru
Cycle Count Class
Cycle Count Walk Thru
Count Accuracy
Tolerance Percent
Cycle Count Walk Thru
Click on File and then on Host Jobs
Cycle Count Walk Thru
Cycle Count Walk Thru
Cycle Count Walk Thru
Cycle Count Walk Thru
Cycle Count Walk Thru
Cycle Count Walk Thru
Cycle Count Walk Thru
Cycle Count Walk Thru
Cycle Count Walk Thru
Physical Inventory Walk Thru
Click on File and then on Host Jobs
Physical Inventory Walk Thru
Physical Inventory Walk Thru
Physical Inventory Walk Thru
Physical Inventory Walk Thru
Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
COUNT GROUP31
COUNT#- 0
INVENTORY COUNT ENTRY LIST
DATE 8/06/07 TIME 17:06:04 PAGE 1 AXTG641R
Stapler Cycle Count 08/06/07
OPER MCCUSKERD
WHSE ITEM NUMBER
DESCRIPTION
TAG NUMBER COUNTED BY COUNT DATE
COUNTED QUANTITY
U/M
LOCATION LINE BATCH/LOT FIFO DATE
ASSIGNED TO
XWH X600
Stapler, Model 600
1
________________ __________ ______________________
EA
RA01A1
N
3/24/06
XWH X610
Top. Plastic Molded
2
________________ __________ ______________________
EA
RA01A1
N
2/02/06
XWH X610
Top. Plastic Molded
3
________________ __________ ______________________
EA
RA01A2
N
3/24/06
XWH X610
Top. Plastic Molded
4
________________ __________ ______________________
EA
RA01A3
N
5/22/06
XWH X610
Top. Plastic Molded
7
________________ __________ ______________________
EA
RA01A4
N
5/22/06
XWH X610
Top. Plastic Molded
10
________________ __________ ______________________
EA
RA01A5
N
5/22/06
XWH X611
Base, Plastic Molded
5
________________ __________ ______________________
EA
RA01A3
N
3/24/06
XWH X613
Plate, Tap Un-Plated
8
________________ __________ ______________________
EA
RA01A4
N
3/24/06
XWH X614
Screw, 1/4"
11
________________ __________ ______________________
EA
RA01A5
N
3/24/06
XWH X615
Washer, Serrated 1/2"
13
________________ __________ ______________________
EA
RA01A6
N
3/24/06
XWH X616
Pad, Rubber Base
14
________________ __________ ______________________
EA
RA01B1
N
3/24/06
XWH X620
Base Subassembly
15
________________ __________ ______________________
EA
RA01B2
N
3/24/06
XWH X621
Sheet, Steel Carbon Chrome
16
________________ __________ ______________________
EA
RA01B2
N
3/24/06
XWH X650
Box, Screenprinted Size 6
12
________________ __________ ______________________
EA
RA01A5
N
5/22/06
Cycle Count/Physical Inventory Walk Thru
TAG#1
DATE 8/06/07 TIME 17.06.04
COUNT GROUP31 Stapler Cycle Count 08/06/07
ITEM NUMBER- X600
COUNT NUMBER- 0
Stapler, Model 600
WAREHOUSE- XWH
LOCATION BATCH/LOT
FIFO DATE
RA01A1
3/24/06
COUNTED BY
DATE COUNTED
QTY COUNTED U/M
____________ ______________ _________________ EA
TAG#2
DATE 8/06/07 TIME 17.06.04
COUNT GROUP31 Stapler Cycle Count 08/06/07
ITEM NUMBER- X610
COUNT NUMBER- 0
Top. Plastic Molded
WAREHOUSE- XWH
LOCATION BATCH/LOT
FIFO DATE
RA01A1
2/02/06
COUNTED BY
DATE COUNTED
QTY COUNTED U/M
____________ ______________ _________________ EA
Cycle Count/Physical Inventory Walk Thru
Activate the Count
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
COUNT GROUP32
INVENTORY COUNT COUNTED/UNCOUNTED REPORT
DATE 8/06/07 TIME 19.20.54 PAGE 1 AXTG660
Warehouse XWh Physical Invento
** UNCOUNTED ITEMS ONLY **
OPER MCCUSKERD
Warehouse XWh Physical Inventory 08/06/0 ** SELECTED COUNTS **
BATCH/
-----------------COUNTED--------------WHSE ITEM NUMBER
DESCRIPTION
LOCATION LOT
FIFO DATE TAG #
BY
DATE
QUANTITY U/M
XWH X610
Top. Plastic Molded
RA01A1
2/02/06
2 ___________________________________ EA
XWH X610
Top. Plastic Molded
RA01A2
3/24/06
3 ___________________________________ EA
XWH X610
Top. Plastic Molded
RA01A3
5/22/06
4 ___________________________________ EA
XWH X610
Top. Plastic Molded
RA01A4
5/22/06
5 ___________________________________ EA
XWH X610
Top. Plastic Molded
RA01A5
5/22/06
6 ___________________________________ EA
XWH X611
Base, Plastic Molded
RA01A3
3/24/06
7 ___________________________________ EA
XWH X613
Plate, Tap Un-Plated
RA01A4
3/24/06
8 ___________________________________ EA
XWH X614
Screw, 1/4"
RA01A5
3/24/06
9 ___________________________________ EA
XWH X615
Washer, Serrated 1/2"
RA01A6
3/24/06
10 ___________________________________ EA
XWH X616
Pad, Rubber Base
RA01B1
3/24/06
11 ___________________________________ EA
XWH X620
Base Subassembly
RA01B2
3/24/06
12 ___________________________________ EA
XWH X621
Sheet, Steel Carbon Chrome RA01B2
3/24/06
13 ___________________________________ EA
XWH X622
Sheet, Steel Carbon Chrome
14 ___________________________________ EA
XWH X623
Pin, Fastener Un-Plated
15 ___________________________________ EA
XWH X624
Spring, # 7
16 ___________________________________ EA
XWH X625
Follower, Un-Plated
17 ___________________________________ EA
XWH X630
Insert, Mechanical Assembly
18 ___________________________________ EA
XWH X632
Compound, Polyethelene Dry
19 ___________________________________ EA
XWH X633
Water, Distilled
20 ___________________________________ EA
XWH X634
Solution, Base Colorant
21 ___________________________________ EA
XWH X635
Compound, Rubber
22 ___________________________________ EA
XWH X650
Box, Screenprinted Size 6
RA01A5
5/22/06
23 ___________________________________ EA
XWH X661
Plate, Tap Chrome Plated
RA01A3
5/14/06
24 ___________________________________ EA
XWH X661
Plate, Tap Chrome Plated
RA01A4
5/14/06
25 ___________________________________ EA
XWH X662
Pin, Fastener Chrome Plated
26 ___________________________________ EA
XWH X663
Follower, Chrome Plated
27 ___________________________________ EA
REPORT TOTALS:
COUNTED ITEMS:
0
UNCOUNTED ITEMS:
26
VOIDED ITEMS:
0
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COUNT GROUP- 39
INVENTORY COUNT VARIANCE REPORT
DATE 9/11/06 TIME 20.02.45 PAGE 1 AXTG670
PHYSICAL INVENTORY WALK THRU
COMPARE QUANTITY - CUTOFF
OPER MCCUSKERD
Physical Inventory Walk Thru
-------- VARIANCE -------WHSE ITEM NUMBER DESCRIPTION
U/M
COUNT
COUNTED QTY COMPARE QTY QUANTITY
LOCATION BATCH/LOT FIFO DATE TOLERANCE UNIT COST
XWH XO6000101
COLORANT - NAVY BLUE
KG
1*
2000.000
2000.000
10.5000
(W) Item exists in another count group.
XWH XO6000102
COLORANT - HUNTER GREEN
KG
1*
3000.000
3000.000
10.5000
(W) Item exists in another count group.
XWH XO6000103
COLORANT - SILVER SPARKLE
KG
1* 40000.000
40000.000
420000.0000 Y
10.5000
(W) Item exists in another count group.
XWH XO6000104
COLORANT - DEEP PURPLE
KG
1* 100.000
100.000
1050.0000 Y
10.5000
(W) Item exists in another count group.
XWH XO6000105
COLORANT - BRIGHT WHITE
KG
1* 200.000
200.000
2100.0000 Y
10.5000
(W) Item exists in another count group.
XWH X613
CHROME PLATED TAP PLATE
EA
1* 400.000
400.000
28.0000 Y
.0700
(W) Item exists in another count group.
XWH X614
1/4" SCREW
EA
1* 500.000
500.000
1.7500 Y
.0035
(W) Item exists in another count group.
XWH X615
1/2" SERRATED WASHER
EA
1* 600.000
600.000
2.3400 Y
.0039
(W) Item exists in another count group.
XWH X616
RUBBER BASE PAD
EA
1* 700.000
700.000
Y
(W) Item exists in another count group.
XWH X620
BASE SUBASSEMBLY
EA
1* 800.000
800.000
56000.0000 Y
70.0000
(W) Item exists in another count group.
XWH X621
CHROME PLATED CARBON
EA
1* 800.000
800.000
24.8000 Y
.0310
(W) Item exists in another count group.
XWH X622
CHROME PLATED CARBON
EA
1* 900.000
900.000
27.0000 Y
.0300
(W) Item exists in another count group.
XWH X623
CHROME PLATED FASTNER PIN
EA
1*
10.000
10.000
.0550 Y
.0055
(W) Item exists in another count group.
AMOUNT
OU
21000.0000 Y
31500.0000 Y
COUNT GROUP32
INVENTORY COUNT VARIANCE REPORT
DATE 8/06/07 TIME 19.20.55 PAGE 1 AXTG670R1
Warehouse XWh Physical Invento
COMPARE QUANTITY - CUTOFF
OPER MCCUSKERD
Warehouse XWH Physical Inventory 08/06/0
-------- VARIANCE -------WHSE ITEM NUMBER
DESCRIPTION
U/M
COUNT COUNTED QTY COMPARE QTY
QUANTITY
AMOUNT
OUT
LOCATION BATCH/LOT FIFO DATE TOLERANCE UNIT COST
XWH X600
Stapler, Model 600
EA
1* 12000.000
10000.000
2000.000
Y
RA01A1
3/24/06
(W) Item exists in another count group.
XWH X610
Top. Plastic Molded
EA
1* NO COUNT INFORMATION ENTERED
RA01A1
2/02/06
(W) Item exists in another count group.
(W) Allocations exceed counted quantity.
XWH X610
Top. Plastic Molded
EA
1* NO COUNT INFORMATION ENTERED
RA01A2
3/24/06
(W) Item exists in another count group.
XWH X610
Top. Plastic Molded
EA
1* NO COUNT INFORMATION ENTERED
RA01A3
5/22/06
(W) Item exists in another count group.
XWH X610
Top. Plastic Molded
EA
1* NO COUNT INFORMATION ENTERED
RA01A4
5/22/06
(W) Item exists in another count group.
XWH X610
Top. Plastic Molded
EA
1* NO COUNT INFORMATION ENTERED
RA01A5
5/22/06
(W) Item exists in another count group.
XWH X611
Base, Plastic Molded
EA
1* NO COUNT INFORMATION ENTERED
RA01A3
3/24/06
(W) Item exists in another count group.
XWH X613
Plate, Tap Un-Plated
EA
1* NO COUNT INFORMATION ENTERED
RA01A4
3/24/06
.0630
(W) Item exists in another count group.
XWH X614
Screw, 1/4"
EA
1* NO COUNT INFORMATION ENTERED
RA01A5
3/24/06
.0035
(W) Item exists in another count group.
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count/Physical Inventory Walk Thru
Cycle Count Steps
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Select Items for Cycle Count
Add/Delete Items To/from the Audit Control Group
Create Cycle Count Inventory Count Group
Generate and Print Inventory Tags
Generate and Print Inventory Count Entry List
Activate the Next Count Group
Work with Inventory Count Groups
Work with Inventory Count Items
Random Count Entry
Sequential Count Entry
Generate and Print the Counted/Uncounted Items Report
Generate and Print the Variance Report
Post Count Adjustment
Physical Inventory Steps
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Create Physical Inventory Count Group
Generate and Print Inventory Tags
Generate and Print Inventory Count Entry List
Activate the Next Count Group – Required
Work with Inventory Count Groups
Work with Inventory Count Items
Random Count Entry
Sequential Count Entry
Generate and Print the Counted/Uncounted Items Report
Generate and Print the Variance Report
Post Count Adjustment
Requirements for maintaining
accurate records
• A good and well documented process for recording
all receipts, issues, and dispositions that affect
inventory unit balances
• A well thought out system of inventory locations
• Record activities which match physical activities
• Well defined responsibilities and accountabilities for
accurate records
Requirements for maintaining
accurate records
• An effective system for maintaining high
levels of training and understanding among all
employees
• An effective audit program
Cycle Counting involves:
• Counting selected items frequently and testing
their record accuracy
• Identifying causes of errors in the records
• Showing change in the quality of records as
time goes on
A Short Way to Get Started
• Get your team together and read the procedure
• Make whatever few changes to terminology that are absolutely
necessary
• Select a group of 25 items
• Make assignments including counters, warehouse supervisor,
inventory analyst, etc.
• Let management know what you are doing
• Schedule a count tomorrow
• Learn by doing
• Post the results!
Physical Inventory
Day 1
• Identify Count Personal (Counters/Checkers/Entry etc.)
• Create Physical Inventory Count Group
• Generate and Print Inventory Count Entry Lists /or Tags
• Training
Day 2
• Activate Next Count
• Count Items (Random/Sequential Count Entry)
• Generate and Print Inventory Count Reports
• Post Count Adjustments
Cycle Count Inventory
Day 3
• Identify Count Personal (Counters/Checkers/Entry etc.)
• Select and Code Items for Cycle Counting
• Create Cycle Count Inventory Count Group
• Generate and Print Inventory Count Entry Lists /or Tags
• Training
Day 4
Activate Next Count
• Count Items
• Enter Counts (Random/Sequential Count Entry)
• Generate and Print Inventory Count Reports
• Post Count Adjustments
THANK YOU