PROJECT IMPROVEMENTDISCREPANCY REDUCTION WAREHOUSE UT SAMARINDA

Created by : Muhammad Rheza Octavianto

Content

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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