8.

Process – Inventory Management

The process of managing inventory in NDIL -1 and 2 is discussed here

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8.1. Current State (As-Is)
8.1.1. Process Map

8.1.2. Checklists (Documents and Reports)

Sl
Name Input/ In- Process/ Output
No
1 Challan /Packing List (For Fabric) Input
2 Challan (For Accessories) Input
3 Excell Report for reject panels Input
4 Swatch Card for left over fabric (Cutting) Input
5 Challan for Office & Production Stationary Input
6 Challan (Spare Parts) Input
7 OCR for Reconciliation Input
8 Declaration for Sewing thread and leftover fabric In- process
9 Daily Receiving Register In-Process
10 SRR (Store Requisition Receipt) In-Process
11 Stock Register In-Process
12 Leftover Receiving Challan from Central Store Output
13 Inventory Report Output

8.1.3. Observations
Sl.
Observation Comment
No

2
 1 Delay in email and follow -ups Factory Planning
(coordinators) to ensure
compliance in this case
2 Space Issue in receiving area, sorting area and stocking Inventory levels should be
area monitored; KPI should be
maintained

8.1.4. Changes suggested for To-Be

Removed/
Sl. Concerned
Suggested Change Modified/ Remarks
No. Department
Added
1 Record inventory Added Stores This should be maintained
turnover and monitored; discussion
if needed

3
8.2. Reengineered Process (To –Be)
8.2.1 Process Map

4
 Ref Process
Title Inventory Management
Store

BTL/ BDL
2

Central Store
Task 3

Input/ Output
– link to
another
process Send to Production
(Cutting)
Sort as per Style
Return to BTL for
Decision 1 Reprocessing
5 7

START Denim Yes

Not OK No
START
4
Record KPI END
END
Factory Store

Check if Yes Yes

Receive Material Fabric Factory QA OK Planning Obtain
Stock by Type of No Order Closed or Send to Left Over 7
with Challan/ Inspection (for 10% If SRR Received Permission from
Fabric Cancelled (follow Store
Packing List Random) Merchandising
up call)
Tweed No
Accessories
Cutting sends mail
to planning,
Sort as per Colour 6 planning merch
and Style store.. Store in
7 Fabric Mill… trim
Sort by Type, Buyer, goes to LO
Item, Size, Colour,
Style

VisioDocument Last modification

Last 04/01/2018
modification 04/01/2018

Input In Process Output

A Suggested
A Document Document Document
New Activity
Input Output from
for another To be
another Integrated with
Process integrated
Process ERP

5
8.2.2 Checklists (Documents and Reports)
Sl
Name Input/ In- Process/ Output
No
1 Challan /Packing List (For Fabric) Input
2 Challan (For Accessories) Input
3 Monthly Plan (from ERP) In- process
4 Trim Sheet In- process
5 Store Requisition In- process
6 email to Planning, Merchandising In- process
7 Inventory Report Output

8.2.3. SOPs
8.2.3.1 SOP – Inventory Management
Scope
This process is applicable to all materials for NDIL- 1 & 2
Objective
The objective of carrying out the Inventory Management process is to do inventory all materials in an order- track
their usage and send back unused material if needed.

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 Procedure
1. Receive Material: Factory Store sends a Store Assistant to the material owner 5 to 7 days before the Sewing
Start Date as per the Monthly Plan MQM Report, who collects accessories with challan and packing list. In case of
fabric sourced from in-house units, the concerned fabric maker sends fabric to Factory Store with challan.
2. Sort by Challan: Factory Store users will sort the accessories by challan in the material receiving area.
3. Factory Store users will sort the material by DPI, buyer, type of item, colour, etc. Items are stocked basis
availability of space.
4. Stock by Type of Fabric: Factory Store users will stock all denim together, and if the fabric is tweed, sort it by
colour and stock it.
5. Prepare or Update Inventory Report: Factory Store users will prepare an Excel –based inventory report for new
DPI, or update an existing report, as per the material received.
6. Check DPI Wise Availability: Factory Store incharge will check if all the items in a particular DPI are available as
per Inventory Report, if not he will mail Merchandising with copy to Factory Head, Central Planning. A copy of
Inventory Report is attached with this mail. If all items are available, he will inform the factory users that all materials
required for production are now available.
7. Send to Factory: Factory Store users will send the inventoried material to the shop floor when they receive a
Store Requisition (SRR) from the concerned factory department. Following this, they will update inventory report.
8. Items for which SRR is not received and are unused for particular DPI will either go into material reconciliation
process after approval from Merchandiser, or will be reused in a different order as per same approval process.

8.2.4 KPIs
Sources/ ERP
Sl
Existing Operation Reference Base Targ Integra
No Metrics Owner UOM Remarks
/ New Definition Report (if line et tion
.
any) Status

7
 This is the
ratio
showing
Inventory how
Turnover inventory is Mont Recom
Days Target to
1 Ratio.. New held, sold Store BOM, DPI per DPI
hly mende
be decided
stock out and Plan d
situation.. replaced
over a
period of
time

8.2.5 RACI Matrices

Sl. RACI Matrix
Name
No. R A C I
1 Inventory Management Store Store Merchandiser, Merchandising
Incharge Incharge, Procurement, Head,
Central Central Store, Planning
Store, Central Head,
Procurement Planning Procurement
Team, Head, Central
Merchandiser Store Head

8.2.6 References
Sl.
Name of process Process serial number
No.
1 Material Inwarding
2
3