1. What must the stockroom do well to contribute effectively? 2. What are the pr

Question

1. What must the stockroom do well to contribute effectively?

2. What are the problems in the stockroom and what is causing them?

Lisa Caruso Lisa Caruso, purchasing manage very concerned about the company's stockroom opera Thursday ions. Faulty records, a rash of last-minute rush orders, was occasionally scheduled on and interference with production were troubles that s had become aware of since becoming manager nine r at Morrison, Inc., was including an unpaid 30-minute lunch break) Monday to , and two eight-hour shifts on Friday. Overtime Most loaders were manufactured to customer order with six to eight weeks' lead time. About 60 percent of the months earlier. It was Thursday, November 6, and with loaders and accessories (e.g. .buckets and forks) were sold volumes expecting to increase during the coming months, through distributors in the northeastern United States and Lisa wanted to make a proposal to the president during their meeting the following week Canada. Normally, distributors and customers did some final assembly themselves. MORRISON, INC. MANUFACTURING OPERATIONS Morrison Inc., (Morrison) located near Philadelphia, The major departments in the plant included the machine Pensylvania, manufactured loaders and accessories for shop, fabrication and welding, assembly, and painting. the construction industry. Current sales were approxi The plant also had a maintenance and repair department mately $50 million. The owner-president of Morrison, which included a repair parts storage room David Morrison, was the son of the founder of the busi The company employed 140 nonunion hourly workers s. The company enjoyed an excellent reputation for a and 30 staff across six departments: engineering, manu ell engineered, high-quality, sturdy product line. Morrison facturing, human resources, accounting and finance, ontruction equipment was considered a premium brand sales, and purchasing. Managers in each department re- in the industry, which differentiated itself from the large ported directly to the president, but enjoyed a high degree of autonomy acturers on the basis of quality and reliability. dMorrisn believed in keeping overhead costs and all aspects of the business as simple as possible. prior, purchased from a local software provider. Purchas- ere highly seasonal and cyclical, closely tied to the ing modules in the system included inventory control The company installed an ERP system several years of td nstruction industry. The peak manufactur purchase orders, shipping and receiving, requisitions, and forecasting. planning, and scheduling. The information systems team reported to the CFO period rar d September. During me, the company operated two 10-hour shifts (not

Explanation / Answer

1 - To contribute effectively the sock room must be working at its optimal capacity, as explained in the above case, stockroom is the heart of the operations, all the spare and parts come from the stock room, if the stock room is inefficient it would cause failure of the complete production line. The stockroom must log all entries and the parts should be only dispersed by the stock room clerk, where he would be the authority of dispersing the requirement. All parts which come in should be tagged with RFID clubbing with the ERP system, which would enable the history of every u part. Plus a proper report on the further requirement should be planned by the stockroom to ensure all parts arrive in time and are well in stock for the production, no expensive buys to be done.

2 - The main issue in the above case is about the improper functioning of the stock room. Here the production starts at 7 am and ends at 3.30am. whereas the stockroom is open from 8.30am till 1.30 am. There is no control over the in and out of the inventory as the production manager and maintenance clerk opens the stock room to get the needed parts and do not make entry, here, in this case, the stockroom clerk should be the sole responsible person to disburse the parts so the timings of the clerks should be increases, if that is not possible then all the requirement should be requested early as per the production schedule. RFID should be incorporated so that the parts are disbursed in timely and recorded manner. This should help Lisa to overcome hurdle too.

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