parts consulting vt-t-2 jan 2002 page 1 stockmanagement with dms-autoplus

Parts ConsultingVT-T-2 Jan 2002 STOCKMANAGEMENT

WITH DMS-AUTOPLUS

Parts ConsultingVT-T-2 Jan 2002

Stock related issues in Autoplus

– Where does the parts information come from ?

– What about prices and how are they calculated ?

– How can I see this information ?

– How do I re-order parts ?

– What about stock management basics ?

– How can I analyse my stock ?

– What should be the target ?

– How to make an inventory (stock taking) ?


Where does the parts information come from

The main parts information from BMW Group is distributed in a ASCII-file named SA40

(Record Type 40).

Further on some additional information is stored

In another file: Family Code File (VTVCODE)Required Files :

SA 40

VTVCODE


Data-flow BMW Group - Dealer DMS

Importer using Autoplus

Dealer using Autoplus

Via Internet or via File Transfer

The Importer himself is

responsible to get the data !

Data

Data


SA 40 File (Price Information) by ICSWeb page ICS: (https://scf.bmw.de)


SA 40 File (Price Information) by ICS

select

SA40 File Download


Parts File Structure in AP2000

SA40 &

VTVCODE

SYSS\SF_70020 SYSS\SF_07020

SYSS\SF_01020

Import SA40: Menu 1-3-1

Pricing 1

Pricing 2

Importer Catalogue File Dealer Catalogue File Stock File

Parts Prices & Family Codes

Parts ReceiptPrice Update: Menu 4-2-6

Price Update: Menu 4-2-6

New Parts Creation

~ 170.000 Parts ~ 170.000 Parts ~ 5.000 – 9.000 Parts

SA30


PricingInfluencing Factors

Influencing Factors on VT-Retail-Pricing

BMW Group Recommende

d Retail Price* (RRP)

Pricing SA (Accessories)

Price

PositioningPrimary Product

Depreciationofolder Vehicles

Cost-of-Ownership

Price Positioningof car

manufacturing Competitors

InsuranceRating

Profitability of

BMW

AG and Importers

Competitor’sPricing of Parts

andAccessoires

Example:Part No.1214 1 703 276Sensor

RRP: EUR 38,60


PricingDiscount Assignment - Examples

41 00 8 205 093 Body Skeleton Euro 4481,47- / A

11 42 1 727 300 Oil Filter InsertEuro 6,13 - / I

11 12 1 734 624 Rocker Cover GasketDM 7,11 / K

Example:Part No. 1214 1 703 276SensorRRP: EUR 38,60Discount Code: D = 20%Discount Code: D = 20%Ex Factory: EUR 30,88Ex Factory: EUR 30,88

1214 1 703 276 Sensor EUR 38,60 / D


PricingDiscount Assignment – Coding Groups

A B C D E F G H I K

New Engines AT-Engines AT-Cylinder Heads Oil Pumps AT-Water Pumps Rocker Arms Tooth Belts Glow Plugs Bulbs Rocker C. Gaskets

Crankshafts AT-Turbochargers Camshafts Lamda Probes Injection Valves Thermostats Silencers Spark Plugs Fan Belts Cyl. Head Gaskets

New Turbochargers Crankcases Fuel Tanks Wheel Hubs Pistons AT-Starters AT-Clutches Fuel Filters Oil Filters

DME Control Units Con Rods Drive Shafts Brake Shoes Timing Chains AT-Alternators Brake Discs Brake Pads Air Filters

AT-Carburettors Intake Manifolds Rear Axle Carriers Brake Calipers Ignition Coils Distributor Caps Mats Front Windscreens Track Rods

Katalyzers Exhaust Manifolds Trailing Arms Doors Fuel Pumps Rotor Arms Rear Windows

Gear Box Control U. AT-Injection Pumps Wheel Housings Rev Counters Fan Couplings Radiators Wiper Blades

New Manual Gearb. AT-Manual Gearb. Tow Bars Spring Struts Clutch Master Cyl.

New Auto Gearbox AT-Auto Gearboxes Shock Absorbers Clutch Slave Cyl.

Steering Boxes AT-Steering Boxes Steer. Wheels(Acc.) Wishbones

New Differentials AT-Differentials Output Shafts Front Wings

Body Shells Heater Units Brake Drums

Seats Brake Master Cyl.

Printed Circuit B. Wheel Cylinders

Air Cond. Kits Front Lids

Radios Front PanelsAlarm Systems Rear Lids

Rear Wings IMPORTANT:

Mirrors There can be exceptions

Spoilers to the general discountBumper Covers

Batteries

Washer Pumps

Rear Lights

Headlights

Safety Belts

Paints

Target:

All parts of one product group with the same discount code!

Example:Part No. 1214 1 703 276SensorRRP: EUR 38,60Discount Code: D = 20%Discount Code: D = 20%Ex Factory: EUR 30,88Ex Factory: EUR 30,88


PricingDiscount Assignment

Captive Parts

Slow Moving ItemsHigh Priced ItemsCost of Ownership

Low Discount

Competitive Parts

Fast Moving Items

High Discount

A B C D E F G H I KA B C D E F G H I K

Ex Factory

Discount Code

Criteria:

VT-Retail

Example:Part No. 1214 1 703 276SensorRRP: EUR 38,60Discount Code: D = 20%Discount Code: D = 20%Ex Factory = RRP – 20% = EUR Ex Factory = RRP – 20% = EUR 30,88 30,88

BMW Group Retail - Discount code (%) = Ex-Factory


PricingMarket retail price calculation

1. Common Way of Retail Price Calculation

2. Calculation using Retail-Factors based on

coding groups


PricingCommon way of retail pricing

A B C D E F G H I KA B C D E F G H I K

VT-Retail

Discount Code

Ex Factory

Market - Retail

Mark-Up factor covers Landed-Cost, Exchange Rate, Importers Gross Profit and Dealer Discount.

Example: 14% Dealer Discount

A B C D E F G H I K

Dealer- Net


PricingCommon way of retail pricing - Example

Market-Retail

Ex Factory

VT-Retail

Front Silencer E 23Example:

A200,90

245,-

G

144,55

267,05

372,00

245,-

G

144,55

267,05

245,-

G

144,55

267,05

245,-

18121175015

735i

18121175333

728i 732i 735i

18121246146

728 728i 730 733i

18121178272

735i

Same VT-Retail Pricefor identical items

Different VT-Discountsdue to cost problems

Different Market-Retail for identical items


PricingDisadvantages of common method

In some cases it presents higher prices than what the customer is willing to pay.

In other cases the price is too low.

It does not allow simple adaptation to the market situation


PricingRecommendation

Calculation using Retail-Factors based on coding groups


PricingCoding groups

VT classifies the total parts range of more than 100.000 items into approx. 900 "coding groups" to simplify the pricing for comparable parts in one group.

12 Engine Electrical SystemExample:

12-10 Ignition

12-10-10 Distributor12-10-11 Distributor Cap12-10-12 Rotor Arm12-10-13 Pulse Generator

12-10-20 Ignition Coil

12-10-31 Spark Plugs Single12-10-32 Spark Plugs Set (4 pieces)12-10-33 Spark Plugs Set (6 pieces)

12-10-40 DME Control Unit12-10-49 DME Control Unit (Exchange)12-10-51 Ignition Cable Sets/Wires12-10-52 Spark Plug Socket

12-10-60 Transmitters

12-10-99 Miscellaneous ItemsThe complete coding handbook can be supplied in 5 languages in printed form or on diskette.

Example:Part No. 1214 1 703 276SensorRRP: EUR 38,60Discount Code: D = 20%Discount Code: D = 20%Ex Factory: EUR 30,88Ex Factory: EUR 30,88Family Code: 121060Family Code: 121060


Pricing Parts Price Information

BMW Group transmits the parts coding file on a monthly basis

This information must be stored by part number and updated monthly in the master

file !

The essential data fields published for automatic pricing are:

Part Number Description

BMW Group Retail

BMW Group Discount

...12 13 1 404 30912 13 1 703 82512 13 1 730 76612 13 1 734 46812 13 1 402 44012 14 1 703 276

...

...Ignition coilIgnition coil Ignition coilIgnition coil Ignition coilSensor...

...95,0095,0095,0095,0095,0038,60

...

...EEEEED...

Family Code

...121020121020121020121020121020121060

...

Example:Part No. 1214 1 703 276SensorRRP: EUR 38,60Discount Code: D = 20%Discount Code: D = 20%Ex Factory: EUR 30,88Ex Factory: EUR 30,88Family Code: 121060Family Code: 121060


PricingRetail Factor Table

Example: Family Code Description Retail-Factor

...121011121012

...121020

...121060

...

..Distributor CapRotor Arm...Sparkplug...Transmitters ...

...1.251.35

...1.10

...1.30...

For each family code a "Retail-Factor" needs to be set in the local systems.

Using the table with all „Retail-Factors“ the individual market retail prices are calculated on a part number level.

Example:Part No. 1214 1 703 276SensorRRP: EUR 38,60Discount Code: D = 20%Discount Code: D = 20%Ex Factory: EUR 30,88Ex Factory: EUR 30,88Family Code: 121060Family Code: 121060Retail Factor: 1.30Market Retail Price = 38,60 x 1.30 = EUR 50,18


PricingDealer Discount Table

The relation between Market Retail and Dealer Net Prices is defined by the market discount.

To classify each item to the market discount codes the BMW Group discount assignment should be adapted.

A B C D E F G H I K

8 10 12 14 16 18 20 21 22 23

Example:Part No. 1214 1 703 276SensorRRP: EUR 38,60Discount Code: D = 20%Discount Code: D = 20%Ex Factory: EUR 30,88Ex Factory: EUR 30,88Family Code: 121060Family Code: 121060Retail Factor: 1.30Market Retail Price: EUR 50,18 Dealer Net = Market Retail Price – 14% = EUR 43,15

Possible Dealer Discount Table


Pricing Recommended Market Retail Price

Market-Retail

Retailfactor

RRP

Ex-Factory

Partnerdiscount

Dealerdiscount

Dealer Net

EUR 50,18

EUR 7,72 = 20%

EUR 30,88

EUR 38,60

EUR 5,54 = 14%

EUR 43,15

Example:Part No. 1214 1 703 276SensorRRP: EUR 38,60Discount Code: D = 20%Discount Code: D = 20%Ex Factory: EUR 30,88Ex Factory: EUR 30,88Family Code: 121060Family Code: 121060Retail Factor: 1.30Market Retail Price: EUR 50,18 Dealer Net: EUR 43,15


PricingGeneral

min. 95%

Automatically calculated

max. 5%

Manually priced

Number of line items

=> 95% automatic price calculation.

=> overall view, better control and flexibility to adapt to local and global conditions

=> competitive prices

contributes to the global

price harmonization

=> Higher customer satisfaction

=> Customer recovery


PricingTargets

Switch to retail price calculation using Retail-Factors based on coding groups

Retail Price harmonization


Price Calculation in AP2000

•CALCULATION OF LANDED COST PRICE

•CALCULATION OF SALES PRICE

•CALCULATION OF SALES PRICE (MARK-UP)

•CALCULATION OF SPECIAL PRICES (MARK-UP)


Pricing 1: Calculation of LC-Price

(100,00 EURO - 20%) * 1 .15 * 0.714 = 65,67 G BP

Example: VT-Retail = 100,00 EuroD isco u n t G ro up B : 2 0%L C -F a cto r 1 .15E xcha n ge R a te 1 E U R O = 1 .4 G B P

Calculation Form ula:(R e ta il P rice - D isco u n t) * L C -F a c to r * E xcha n g e R a te = LC P rice

Required Inform ation from Im porter:D isco u n t F a c to rs

L C -F a c to rE xcha n ge R a te to E U R O / G B P

Required Inform ation from BM W G roupV T -R e ta il P rice (R R P )

D iscou n t C o de


Pricing 2: Calculation of Sales Price

100,00 EURO * 1.20 * 0 .714 = 85,68 G BP

Example: V T -R e ta il = 10 0 ,0 0 E u ro

R e ta il F a c to r = 1 .20 E xch an g e R ate = 1 E U R O = 1 ,4 G B P

Form ula:V T -R eta il * R e ta il Fa c to r * E xcha n g e R a te = S a les P rice

Required Inform ation:V T -R e ta il (R R P )

R e ta il Fa c to r by F a m ily C o deE xch a ng e R a te


Pricing 1: Mark-up Calculation

65,67 GBP * 1 .25 = 82,09 G BP

Example: LC-Price = 65,67 G BP M a rk-u p F a c to r = 1 .25

Form ula:L C -P rice * M a rk-u p F a c to r = S a le s P rice

Required Inform ation:L C -P rice

M a rk -u p F a c to r


Where do I see the information ?


Information by double-click on single item


Same Information in AP 4.0 (Menu 4-1-3)


Same Information in AP 4.0 (Menu 4-1-3 Page Down)


How can I see my Retail Factors by Family Code ?


Re-ordering with Autoplus

Creation/Modification of an order

Printing/Updating the order form

Transfer of the order file (E1,N1) via ICS

Manual Receipt in IT-System (without SA30)


Creation of an Manual Re-order

P u rc h as e P ric e: 1 fo r N o rm al (S to c k ) o rd e r 2 fo r R u s h o rd e r

yo u c an als o u s e the F IL e m ain tan an ceto h ave a lo o k in to th e s to c k file

yo u c an c h an ge , am e n d and d e le te th is ord e r, un til youu p d ate it in th e p rin t re ord e r fo rm m e nu

b y c o nfirm in g yo u r e n trys w ith ye s , the n e xt s c re en g ivesyo u th e p os s ib ility to e n te r th e artic le s to b e o rd e red

E n te r the s u pp lie r, the ac tu al d ate w ill b e e n te redau to m atic ally ; en te r, w h ic h P u rc h as e p ric e s ho u ld b e take n an d fin ally e n ter

th e u s e d c u rre n c y c o de

C R E ate an o rd erth e s ys te m w ill g ive you th e ne xt free

o rd e r n u m b er

A M E n d an e xis tin g o rd ertyp e in th e o rd e r n um b e r to be m o d ified

Y o u c an als o m o d ify an o rd e r fromth e au to m atic reo rd e r p ro p o s al

A P 4 .0 :M e nu le ve l 4 - 4 - 5M ain t. re - o rde r p ro p o s al


Printing/Updating of the Orders Automatic or manual order

Y o u w ill re c e ive a p rin t- o u t o f yo u r o rd er

e n te r th e o rd e r n u m b ers to b e p rin tedan d b e s u re th at F ie ld U p d ate Y /N is s e t to N O ,

W ith o u t u p d ate

T h e p ro g ram m g e n e rate s a file c o n s is tin g ofo rd e r n u m b e r + s u ffi x (i.e . 00 0 0 1 1 _ 1 .txt)

re n am e it to V T A V A U F T b e fo re u p lo ad in g !

Y o u w ill re c e ive a p rin t ou t, an d a fileis c re ate d in yo u r B M W C O M M d ire c to ry

th e d is p atc h m od e s are:1 1 s e a fre ig h t 2 2 ra il fre ig h t 3 1 tru c k e xp re s s

3 2 tru c k n o rm al 4 1 a ir fre ig h t 4 3 a ir m ail4 4 d o o r- to d o o r (F e d E X ) 4 6 d o o r- to d o o r (D H L )

e n te r th e o rd e r n u m b ers to b e p rin te d an d s etth e fie ld U p d ate to Y E S an d e n te r th e d is p atch m o d e s ,afte r c o n firm in g , th e ord e r c an ´t b e c h an g e d an y m o re!

w ith u p d ate en ab led

A P 4 .0 : M e n u le ve l 4 - 4 - 6P rin t re - o rd e r fo rm s


E1, N1 File Transfer via ICS

S e e fo llo w in g w o rkflow

A m e s s ag e from th e B M W - S e rve r ap p e ars ,w e th e r th e tran s fe r w as O K o r n o t.

u p lo ad the file V T A V A U F T fro m yo urB M W C O M M d ire c to ry

e s tab lis h an In te rne t c o n n ec tio n to th e B M W - S e rve r:h ttps ://s c f.b m w .de

E 1 , N 1 (fo rm e r S A 1 0 ) file tran s fer


Order Transfer via ICS

Select file : K:\BMWCOMM\VTAVAUFT


Manual Receipts (without SA30)

by us ing the E N T E R - K ey yo u c ans tep thro ugh the o rder

to R ec eive parts

P leas e C hec k the purc has e p riceT he field : T o R ec eive, gives yo u a s tatus :

T O R EC E IVE :0 => P o s . C lo s edT O R EC E IVE >0 =>Q T Y expec ted

C o nfirm yo ur entrysw ith yes if they are O K

and the s to c k file is c hangedim med iate ly

enter the rec eived artic les or fill inA U T fo r receip t o f a ll artic les w hic h are not

rec eived yet

enter the c urrenc y of the invo ic e/delivery no te

enter the order num ber o f the o rder- rec eipt

A P 4 .0: M enu level 4 - 4 -7R eceip ts


Automatic Receipts using SA30 File

– Download SA30 File via ICS

– Import file in SA30 Program

– Check and unpack parts

– Update Autoplus stock


SA30: Download SA30 Files

Download in k:\bmwcomm\


Import File in SA30 Program


Check imported File


Print unpacking slip, check and bin parts


Update Autoplus with SA30 Records


Stock Management Basics Situation

TODAY TOMORROW

C NC

ORDERING

STOCK


Stock ManagementTargets – Philosophy

1st Prioritybest possible service

„customer satisfaction“

1st Prioritybest possible service

„customer satisfaction“2nd Priorityminimal costs

2nd Priorityminimal costs

100% of parts on stock no stock, no warehouse

Solution:•optimised structure of stock•economic ordering•economic stock-administration

Solution:•optimised structure of stock•economic ordering•economic stock-administration


easy to avoid dead stock

needs less capital

no need of high investments

reduces variable costs (employment, rent etc)

supports customer satisfaction

guarantees good service level

guarantees instant sales

supports efficient use of workshop capacity

supports strong position against competitors

Stock ManagementConflicts

Conflict

HIGH STOCK LOW STOCK


Stock ManagementStock Management Process

define budget figures

define budget figures

ABC classification

ABC classification

inventory analysis

inventory analysis

generate figures of

actual situation

generate figures of

actual situation

comparison of budget and actual

figures

comparison of budget and actual

figures

evaluate differences and reasons

why

evaluate differences and reasons

why

define figures of planned situation

define figures of planned situation

define and realise actions

define and realise actions

CONTINUOUSPROCESS


Stock StructureNecessary Stock

sto

ck –

NO

T s

tore

d

specified by

market dem

and

central warehouse subsidiary /importer

dealer

sto

red

sto

ck

sto

red

sto

ck

specified by

market demand

sto

ck –

NO

T s

tore

d

A-parts


Forecast and order calculationElements of parts planning

FORECAST Calculation of future demand

SAFETY STOCK To balance :

– Variation of demands

– Variation of demands within

reorder period

– Forecasting errors

MINIMUM (Reorder point) A part has to be ordered

by reaching this stock quantity

MAXIMUM Stock (pieces) which should

be covered by ordering


Calculation of the Minimum

Lead Time: (maximum Value by Differences)

1st April 15th May 30th May

Order Customs Depot

6 weeks 2 weeksΣ = 4 weeks + 8 weeks + 4 weeks

Reorder period

Review

period

Lead

Time

Safety

Stock

Forecast = 20 pieces / 4 weeks

(weighted average)+ on actual stock : >= 20 >= 60 >= 80

Review period

(time between two stock orders)

+ Lead time

= Reorder period

+ Safety stock

= MINIMUM


Steps of parts planning

1. Forecast Calculation (monthly)

Determination of future demands (units) per month

Weighted Sales (pieces):

M-01

30%

M-02

30%

M-03

20%

M-04

20%

5 4 3 7

1.5 1.2 0.6 1.4

4.7 = Forecast+ + +

2. Calculation of MINIMUM

On reaching this quantity, it has to be ordered

Review period (months) + lead time (months) = reorder period (months)

1.0 1.5 2.5+ safety stock (months)

1.5

= 4.0

x forecast 4.7

= 18.8 (pieces) minimum



3. Total Stock (pieces)

Stock on hand + quantity on order - cust. backorder - cust. Reservation = Total Stock

5 3 0 0 8

4. Compare MINIMUM

by reaching MIN it has to be ordered

Total stock > MIN

Total stock <=MIN

No order

Order Quantity Calculation (5. + 6.)

8 < 18.8 Order



5. Maximum (Planning Stock)

Quantity which should be covered

Minimum (months)/Reorder Point+ Reorder Horizon

= MAX (months) * Forecast (pieces) = MAXIMUM (pieces)

4.0 + 2.0 = 6.0 * 4.7 = 28.2 MAX

6. Order proposal

MAXIMUM (pieces) - total stock = order quantity (calc.)28.2 8 20.2

Compare order quantity >= 75% factory packing quantity = order proposal20.2 25 25


Stock StructureABC Classification

Sales (pieces)

Line items

80%

95%100%

100%

A B C

(Lorenzkurve)

A,B,C

N

X

Z

D

Parts with a history longer than 12 months in our DMS, classification according to several criteria

Exceptions, parts that belong to stock unattached by classification criteria, like coded parts (DC), service parts (DK)

New parts with less than 12 months history in our DMS,classification (NA, NB, NC) according to criteria as above

Parts which cannot be classified in groups A – N

Parts which cannot be classified in groups A – N due to data error


Stock Management Basics Assortment Classification (Example)

ABC Code ReorderFreq Delivery Time Entry Time Sec. Time Reor. Horizon M in. Stock M inTime M axTime Issues from Issues to Picks from Picks to Price from € Price to €

A1 1 1,5 0,2 2 3 1 4,7 7,7 12 99999999 3 99999999 0,00 0,50

A2 1 1,5 0,2 1,5 2,5 0 4,2 6,7 12 99999999 3 99999999 0,51 2,50

A3 1 1,5 0,2 1 1 0 3,7 4,7 12 99999999 3 99999999 2,51 7,50

A4 1 1,5 0,2 0,5 0,5 0 3,2 3,7 12 99999999 3 99999999 7,51 99999999,00

B1 1 1,5 0,2 1 3 1 3,7 6,7 4 11 2 99999999 0,00 0,50

B2 1 1,5 0,2 1 2,5 0 3,7 6,2 4 11 2 99999999 0,51 2,50

B3 1 1,5 0,2 1 0,5 0 3,7 4,2 4 11 2 99999999 2,51 7,50

B4 1 1,5 0,2 0 0,5 0 2,7 3,2 4 11 2 99999999 7,51 99999999,00

C0 0 1,5 0,2 0 0 0 1,7 1,7 0 0 0 0 0,00 99999999,00

CX 0 2,5 0,2 0 0 0 1,75 1,75 1 3 1 3 0,00 99999999,00

CY 0 2,5 0,2 0 0 0 1,75 1,75 4 9999 1 1 0,00 99999999,00

DCD 0 2,5 0,2 0 0 0 1,75 1,75 0 99999999 0 99999999 99999999,00 99999999,00

DNA1 1 1,5 0,2 1 2 0 3,7 5,7 12 99999999 3 99999999 0,00 0,50

DNA2 1 1,5 0,2 1 1 0 3,7 4,7 12 99999999 3 99999999 0,51 2,50

DNA3 1 1,5 0,2 1 0,5 0 3,7 4,2 12 99999999 3 99999999 2,51 7,50

DNA4 1 1,5 0,2 0,5 0,5 0 3,2 3,7 12 99999999 3 99999999 7,51 99999999,00

DNB1 1 1,5 0,2 1 2 1 3,7 5,7 4 11 2 99999999 0,00 0,50

DNB2 1 1,5 0,2 1 1 0 3,7 4,7 4 11 2 99999999 0,51 2,50

DNB3 1 1,5 0,2 1 0,5 0 3,7 4,2 4 11 2 99999999 2,51 7,50

DNB4 1 1,5 0,2 0 0,5 0 2,7 3,2 4 11 2 99999999 7,51 99999999,00

DNC0 0 1,5 0,2 0 0 0 1,7 1,7 0 0 0 0 0,00 99999999,00

DNCX 0 1,5 0,2 0 0 0 1,7 1,7 1 3 1 3 0,00 99999999,00

DNCY 0 1,5 0,2 0 0 0 1,7 1,7 4 9999 1 1 0,00 99999999,00

DSE 1 1,5 0,2 2 1 0 4,7 5,7 0 9999999 0 9999999 99999999,00 99999999,00

Z 1 0,7 0,2 0 0 0 1,9 1,9 0 99999999 0 99999999 0,00 99999999,00


ASSORTMENT D parts classified as D must be analysed separately whether necessary or not

ASSORTMENT C parts classified as C (and NC) should not be stored ordering of parts classified as C (NC) by rush order (or by VOR order on customer demand)

ASSORTMENT A and B parts classified as A or B (and NA or NB) must be stored (to maintain a high service degree and customer satisfaction) ordering of parts classified as A or B (NA or NB) regularly by stock order

Stock StructureABC Classification - Summary

G E N E R A L define ABC classification for all line items update classification every month check classification of new parts (NA, NB, NC) after 12 months


Automatic Reorder Proposal from DMS


How to Analyse the StockGeneral

Requirements for an accurate analysis :

1. Physical and System Quantities are equal

2. Parts and Prices are up to date

3. Parts Supersessions are carried out in the system


Stock Analysis FiguresService Degree

100 * Quantity RequestedQuantity Delivered

(%) Degree Service

(in the same time frame)

Example:

% 85 100 * requested items 2.000

yimmediatel delivered items 1.700 (%) Degree Service


Stock Analysis FiguresTurnover Ratio

100 * ValueStock

Turnover (%) RatioTurnover

(Same Time Frame/ Value by Cost Price)

Increase of Turnover Ratio means:

Increase of Turnover

Decrease of Stock -value


Example - Turnover Ratio

Your Warehouse has a yearly Turnover of 900,000 € at Cost Price. Because of stock management improvements you could reduce your 300,000 € stock value by 100,000 €

BEFORE: AFTER:

3 300,000900,000 RatioTurnover 4.5

200,000900,000

RatioTurnover


Stock FiguresRush-order percentage

100 * orders Total ValueordersRush Value

PercentageOrder Rush

Remark:

This calculation has to be made for A, B and C Assortment seperately !

Target Values:

A-Assortment < 0 – 5 %

B-Assortment < 5- 25 %

C-Assortment > 85 –100 %

(in the same time frame)


Success Control Targets

1. Line items without stock

1. A- Parts

2. B- Parts

3. NA- Parts

4. NB- Parts

2. Line items undercoverage

1. A- Parts

2. B- Parts

3. NA- Parts

4. NB- Parts

3. Order Situation

1. Rush Order Percentage

2. Rush order Percentag A-Parts

4. Excess Stock Value

1. A- Parts

2. B- Parts

3. NA- Parts

4. NB- Parts

Actual Target

=<1.5 %

=< 10 %

=< 5 %

=< 15%

=< 10 %

=< 20 %

=< 10 %

=< 25%

=< 30 %

= < 5 %

=< 10 %

=< 15 %

=< 10 %

=< 20%


Success Control Targets

5. C-Stock Value

1. Yearly increase of total stock value

6. NC-Stock Value

1. Percentage of NA+NB Value

2. Percentage of total value

7. Turnover Ratio Total

1. A- Parts

2. B- Parts

8. Availibilty Total

1. A- Parts

2. B- Parts

Actual Target

2 – 3 %

=< 20 %

=< 2 %3 - 4>= 4

2.5 - 3

92 – 95 %

=< 97%

=< 90 %


Autoplus – Success Control Tool


AP 4.0 as Success Control Tool (Menu 4-6-1)


Charts using standard Office Application

The Data can easily be transferred i.e. to MS- Excel to create own charts

Examples:

Stock Diagram by Assortment as of Nov 2001

A4%

B9%

C70%

D17%

A

B

C

D

Sales by Assortment Last 12 Month

A24%

B21%D

26%

CX29% A

B

D

CX

Share of C-Parts

51%

30%

14% 5%C0

CX

DNC0

DNCX


Inventory (Stock taking)

What is an Inventory ?

A numeric and physical counting of all stock items

Why making an inventory ?

Match the stock data in the System with the physical stock


Preparation of an Inventory

Inform Dealer Organisation

Capacity Planing (Counting staff)

Prepare Listings

Prepare Warehouse (Cleaning etc.)

Inform Workshop (Reduce open jobs)


Inventory in Autoplus

Creation of a count List(s)

Activate count List(s)

Manual, physical counting

Input results in Autoplus

Printing results/differences

Integrate count results


Creation of Count List(s)

an artic le c an o nly exist in one co unt lis t,there are no tw o lis ts fo r o ne artic le!

a c ount lis t is c reated

fill the fro m- to fields in the mask

dec ide if the lis t is c reated us ing the lo cationo r the artic le (part) numbers

C R E ate a c o unt lis tthe sys tem w ill p ropo s e a lis t number

M enu level 4 - 8 -1C o unt lis t


Activating, printing the count list(s)

A c tu al co u n t lis t, th e b as e for yo u r co u n ting

p rin t o u t th e ac tivate d lis t

yo u c an activate th e c re ate d lis tc o n firm in g th e p ro p o s al

M e n u le ve l 4 - 8 - 2A c tivate c o u n t lis t


Manual, physical counting

Manual count of the articles and entering the results in the

count list(s)


Input/Print of the count resultsand integration

w ith F 6 =S tatu s yo u can ju m p toT o p /1 s t w ith ou t re s u lt/A rtic le N o.

c o u n tin g :if th e re is a re s e rvatio n for th is p art, th is m u s t n ot

b e c o u n te d !!!e .g .: s to = 5 0 , re s = 1 , at d is p . = 4 9 ==> c o u n t 4 9 !

if e ve ryth in g is O K , in te g rate th e re s u lts in to th e s to c k fileM e n u le ve l 4 - 8 - 5

M e n u le ve l 4 - 8 - 4P rin t th e c ou n t re s u lts

th is lis t w ill s h o w yo u the in ve n to ry - d iffe re n c es

e n te r th e res u lts , th e s ys tem w ill m ark th e e n trysan d s h o w yo u th e s to c k - d iffe re n ce

e n te r lis t n um b er

M e n u le ve l 4 - 8 - 3In p u t co u n t re s u lts


Thank you very much for your attention

Contact:

parts consulting vt-t-2 jan 2002 page 1 stockmanagement with dms-autoplus

Documents