If you spend time in the Production, Warehouse, Purchasing, and Procurement units, you will frequently come across the following conversations. • We could not find the material; can we bring a new one right away?
- There is no material; clear the line as soon as possible, we are going to produce the other product!
- The semi-finished goods and materials inside the line are waiting because a part is missing.
- Production cannot keep up; our number of operators is insufficient.
- For reasons beyond our control we will not be able to make the shipment; it will be a little late, unfortunately.
- Those parts are sitting somewhere in the warehouse; please search and find them as soon as possible!
- We should assign other people as well to search for the material!
- There is too much work in the warehouse; our number of personnel is insufficient.
- Our warehouse space is insufficient; we are working with scarce resources.
- We skipped issuing the goods; the record stayed in inventory.
- These are the parts we searched for and could not find! When we changed its shelf, we forgot to make the address change in the system.
- This part was written on the delivery note; we did not look inside the boxes. The wrong material had come.
- We did not look inside the boxes; it was short.
- The other day they asked for it from production, saying it was urgent; we gave it, but we did not issue it.
- Every job is urgent; we cannot do them all today!
All of these problems come from certain recurring errors that arise in storage processes. Coming across these problems is inevitable, but what matters is how often they are experienced. In the table below, let us try to define the potential problems one by one and to set out their consequences.
| DEFINITION OF THE PROBLEM | CONSEQUENCES THAT ARISE | EFFECTS | |
| 1. | Material recorded as present in the warehouse not actually being present in the warehouse |
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| 2. | Material recorded as not present in the warehouse actually being present in the warehouse |
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| 3. | Less material being on hand than the quantity recorded in the warehouse |
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| 4. | More material being on hand than the quantity recorded in the warehouse | 1. Unnecessary loss of finance and space, 2. Waste if the material cannot be put to use |
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| 5. | Failure to find the physical address, the location, of material that is recorded in the warehouse and is also physically present | 1. Personnel and time lost because of searching, 2. Production and sales not being carried out on time, 3. Waste caused by procuring the material again |
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| 6. | Shipping of newly arrived goods that are easy to reach, even though older-dated goods are available, with the result that the older-dated goods suffer damage and deterioration | 1. Damage and deterioration caused by dust and moisture 2. Damage and deterioration caused by waiting 3. Idle, leftover, unnecessary material | 1. Loss of quality 2. Loss of customers, 3. Loss of finance 4. Loss of earnings |
| 7. | Goods suffering damage and deterioration because they wait for a long time in a dusty or humid warehouse environment | 1. Damage and deterioration in the materials 2. Production and sales not being carried out on time, 3. Waste caused by a delay in procurement. |
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