System Configuration for Serving MIS requirements

Situation:

Our client was into manufacturing with more than 20 product variants and with experienced promoters the business was in the phase of growth. However, their inventory situation was a far different story. The inventory MIS was being maintained on Excel which was time consuming and error ridden. The continuous manufacturing process included many smaller raw material items being process into an assembly of finished goods. It was getting difficult to track consumption of individual items and also the contribution in the finished goods besides getting actual profitability on the day.

Methodology:

We conducted an expectation analysis and key issue identification session with the management and key team members to arrive on the scope of the project.  Subsequently we conducted evaluation exercise of the production process, accounting systems, inventory management systems, MIS generated on routine basis and interviewed the team for their feedback.

Observations:

• The management felt that the accounting systems were incapable of providing the required MIS and were expecting technical up gradation as a solution.
• However the real issue lay in the data entry at various levels, communication gap/ flow of information within the production, stores and the accounting team besides little technical improvisations.

Solution offered:

• The entire inventory movement was mapped in the manufacturing unit and standardization of raw material nomenclature, its units, Line -wise store release segregation and  data entry responsibilities were set.
• Further up gradation in the accounting software was taken up for ensuring error free entry of data, introducing control measures and generation of necessary MIS.
• The staff was explained about the changes made and training was imparted to the entire team. Finally the changes so done were implemented along with review and monitoring calendar.

Key take away:

Keeping control of your inventory makes for easier organization, lower holding costs, better cash flow, and more space within your warehouses. It may seem a simple concept, but requires use of right inventory management techniques and real time updating of accounting systems to keep track of movements and levels.

Once the company implemented the solutions suggested they saw results the first day of use. They were able to save time and the improved system also tied in seamlessly with other operational processes already in place. Inventory tracking not only made it easier to track current inventory levels at various stages of production, but helped to calculate seasonal peaks and flows to forecast for the future. The availability of the MIS helped the management better understand profitability and productivity of various lines and products.