Tuesday, September 17, 2013

Effective Store System - Going

In the performance of these duties an effective stores
system should accomplish at least four things :

First. It should prevent over-investment and un-
balanced accumulation. Of course, an extraordinary pur-
chase to secure advantage of special market conditions,
although leading to a temporary over-investment or
overbalance of some item of stores, might yet be very wise.





This is an obvious exception which common-sense would
suggest.

Second. It should give automatic warning of approach
to a minimum on any item, so that the danger may be
averted by filling up the low points.

Third. It should provide effective means for getting the
material through the factory rapidly and without delays,
even up to the final delivery of the finished stock.

Fourth. It should furnish records of every delivery, so
that each order can be traced and identified with the job and
with the workmen, and so that every part or piece may be
accounted for and a continuous inventory of stock on hand
may be obtainable.

It is apparent that these requirements connect the stores
department very closely with the purchasing department on
the one side, with the cost department throughout, and with
the shipping department on the other side. Under able
and energetic administration, indeed, it may be made (and
in some modern institutions it is being made) not simply
a bureau of custody and record, but a leader and a driver of
the manufacturing superintendents and the operating officers.
Even though it have no executive authority over manufac-
tures, it can and it should disclose delays, inefficiencies,
irregularities, and extravagances and bring them to the
attention of the executives for correction.

So much for the functions of the stores department.




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