Solutions To Data Integrity Issues
Bill of material - The best practice is to physically verify the bill of material either at the production site or by un-assembling the product.
Cycle count - The best practice is to determine why a cycle count that increases or decreases inventory has occurred. Find the root cause and correct the problem from occurring again.
Scrap reporting - This can be the most difficult area to maintain with any integrity. Start with isolating the scrap by providing scrap bins at the production site and then record the scrap from the bins on a daily basis. One benefit of reviewing the scrap on site is that preventive action can be taken by the engineering group.
Receiving errors - Manual systems of recording what has been received are error prone. The best practice is to implement the system of receiving by ASN from the supplier. The supplier sends an ASN (Advanced Shipping Notification). When the components are received into the facility, the ASN is processed and then company labels are created for each line item. The labels are affixed to each container and then scanned into the MRP system. Extra labels reveal a shortage from the shipment and too few labels reveal an over shipment. Some companies pay for ASN by reducing the time in processing accounts payable.
Shipping Errors - The container labels are printed from the shipper. The labels are affixed to the containers in a staging area or when they are loaded on the transport.
Production reporting - The best practice is to use bar code scanning to enter production into inventory. A product that is rejected should be moved to an MRB (material review board) location. Containers that require sorting need to be received in reverse.
Replenishment - The best replenishment practice is replacement using bar code scanning, or via pull system. Depending upon the complexity of the product, planners can actually order materials using scanning with a min-max system.
Read more about this topic: Material Requirements Planning
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