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Oracle Cycle Couting
Citation preview
Cycle Counting Cycle Counting
Strategy & ProcessStrategy & Process
March 09
AgendaAgenda
� Purpose
� Features & functionality
� Business process considerations
� Setup & configuration
� Process
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� Process
� Special considerations
� Summary
PurposePurpose
� High level understanding of how Oracle cycle counting works
� Understand business process considerations
� How to setup in Oracle apps (11.5.10)
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� How to setup in Oracle apps (11.5.10)
� Best way to deploy
Features & FunctionalityFeatures & Functionality
� Part of Inventory module – One of 3 ways to count� Physical Inventory
� Replenishment Counting
� Cycle Counting
� Automates periodic cycle counting
� Identifies criteria for automating
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� Identifies criteria for automating
� Provides variance reporting
� Allows approval control
� Supports serial & lot control items
Features & Functionality (Cont’d)Features & Functionality (Cont’d)
� Allows manual adjustments
� Fully integrated with cost accounting methods
� Integrated with ABC Analysis� Required to leverage full functionality of Cycle Counting
� Provides ability to classify items into ABC ranks
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� Flexibility to update & change “on the fly”
� Target inventory to count by Subinventory or organization
� Facilitate recounts & rejects
� Reporting & Analysis of transactions
Business Process ConsiderationsBusiness Process Considerations
� What type of business?� Manufacturing
� Distribution
� Other
� What inventory accuracy is important to your company?� Business critical
Mildly important
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� Mildly important
� Not important
� What inventory control disciplines are in place?� World class (>95% inventory accuracy)
� Above 90% accuracy
� Below 90%
Business Process Considerations (Cont’d)Business Process Considerations (Cont’d)
� Logistics - Method currently in place� RF bar codes enabled
� Bar code only
� Written
� Logistics - Timing of cut-off� Multiple shifts
Resources available
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� Resources available
� Data entry
� Approval
� Management Reporting Requirements� External audit requirements
� Variance reports
� Internal audit requirements
Setup & ConfigurationSetup & Configuration
� ABC Analysis – First Hurdle� ABC’s of ABC’s
� ABC Classes
� ABC Compile
� ABC Assignment Groups
� Cycle Counting – 2nd Hurdle
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� Cycle Counting – 2nd Hurdle� Cycle Count
� Attach ABC Group
� Load ABC Items
Setup & Configuration (Cont’d)Setup & Configuration (Cont’d)
� ABC’s of ABC’s
The ABC classification process is an analysis of a range of items, such as finished products or customers into three categories:
A - outstandingly important
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A - outstandingly important B - of average importance C - relatively unimportant
as a basis for a control scheme. Each category can and sometimes should be handled in a different way, with more attention being devoted to category A, less to B, and less to C.
Setup & Configuration (Cont’d)Setup & Configuration (Cont’d)
� ABC Classes
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Setup & Configuration (Cont’d)Setup & Configuration (Cont’d)
� ABC Compile
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Setup & Configuration (Cont’d)Setup & Configuration (Cont’d)
� ABC Compile Criterion
� Current on-hand quantity
� Current on-hand value
� Historical usage value
� Historical usage quantity
� Historical number of transactions
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� Historical number of transactions
� Forecasted usage value
� Forecasted usage quantity
� Previous cycle count adjustment quantity
� Previous cycle count adjustment value
� MRP demand usage quantity
� Use the MRP demand usage quantity
� MRP demand usage value
Setup & Configuration (Cont’d)Setup & Configuration (Cont’d)
� ABC Assignment Groups
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Setup & Configuration (Cont’d)Setup & Configuration (Cont’d)
� ABC Assignment Groups (Cont’d)
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Setup & Configuration (Cont’d)Setup & Configuration (Cont’d)
� ABC Assignment Groups (Cont’d)
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Setup & Configuration (Cont’d)Setup & Configuration (Cont’d)
� Cycle Count
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Setup & Configuration (Cont’d)Setup & Configuration (Cont’d)
� Cycle Count (Cont’d)
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Setup & Configuration (Cont’d)Setup & Configuration (Cont’d)
� Cycle Count (Cont’d)
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Setup & Configuration (Cont’d)Setup & Configuration (Cont’d)
� Attach ABC Group
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Setup & Configuration (Cont’d)Setup & Configuration (Cont’d)
� Load ABC Items
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Count ProcessCount Process
� Perform Full Cycle Count� Generate Automatic Schedule Requests
� Generate Cycle Count Requests
� Cycle Count Listing
� Count items� Blind count
Record quantity
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� Record quantity
� Approve & Update� Approve cycle counts
� Request recount
� Save & Update inventory
Count Process (Cont’d)Count Process (Cont’d)
� Perform Full Cycle Count
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Count Process (Cont’d)Count Process (Cont’d)
� Perform Full Cycle Count
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Count Process (Cont’d)Count Process (Cont’d)
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Count Process (Cont’d)Count Process (Cont’d)
� Update Items
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Special ConsiderationsSpecial Considerations
� Establish timely approach
� Execution is everything!
� What about locations audit?
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� What about locations audit?
� How to handle reservations and allocations
� What about “Kits”?
SummarySummary
� Determine what type of industry and counting applies
� Understand ABC Analysis
� Analyze data ahead of time for ABC compiles
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� Analyze data ahead of time for ABC compiles
� Execute properly
� Test process thoroughly