[type document title] - wacom quartz · quality system documentation release ... this procedure...

Doc # SOP – IM01 Quality System Documentation Release # rel A Revision # rev 1

INVENTORY MANAGEMENT

Being a Standard Operating Procedure level documentation of the Wacom Quartz implementation of the ANSI/ISO/ASQ Q9001-2008

Standard, paragraph 4.2

Process Owner:

Tracy Rieth Senior Buyer / Planner

Approved By: James Roeger John H. Smalling VP - Phoenix Quality Manager Tony Cortese Randy Wombacheer Buyer / Planner Production Manager

Released: 1/6/2015

JohnS

Placed Image

Doc # SOP - IM01 Release # rel A Revision # rev 1

Red Text on Electronic view is a Controlled Copy. Printed copies are non-controlled; for information purposes only, and will NOT be updated with new revisions.

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Table of Contents

Changes in This Revision: ________________________________________________________ 3

1.0 Purpose and Scope __________________________________________________________ 4

2.0 Definitions _________________________________________________________________ 4

3.0 Procedure _________________________________________________________________ 5

3.1 Part Maintenance - Purchase Parts___________________________________________ 5

3.2 Part Configuration Control _________________________________________________ 5

3.3 Stockroom Rules __________________________________________________________ 6

3.4 Material Movement _______________________________________________________ 7

3.5 Cycle Counting ___________________________________________________________ 7

4.0 Quality Records & References _________________________________________________ 9

4.1 Quality Records ___________________________________________________________ 9 Biannual Min/Max Inventory Review ___________________________________________ 9 Biannual Slow Moving Review ________________________________________________ 9

End of the Month Cycle Counts ________________________________________________ 9 Year End Inventory Counts ___________________________________________________ 9

4.2 References _______________________________________________________________ 9 WI - EPC01 ________________________________________________________________ 9 WI – EQA01 _______________________________________________________________ 9

WI - MI01 _________________________________________________________________ 9

WI – IS01 _________________________________________________________________ 9 Form – PNV01 _____________________________________________________________ 9 WI – EM001 _______________________________________________________________ 9

SOP- CR01 ________________________________________________________________ 9



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Changes in This Revision:

Paragraph Prior Text or Intent

All Release A, Revision 1, 11/4/14, Initial Release



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1.0 Purpose and Scope This procedure describes the process for Part Creation and Maintenance in Epicor, Part Configuration Control, Stockroom Rules, Material Movement and Cycle Counting. This procedure can only be performed by Purchasing, or other personnel with an Epicor account and password having the correct rights assigned within the system.

2.0 Definitions

Epicor Vista Enterprise Resource Planning software and database used at Wacom Quartz to control Sales, Purchasing, Production and Inventory data.

Epicor Memos Internal Wacom Quartz notes within Epicor for traceability

Key Suppliers Usually top 10 suppliers in terms of spend, but suppliers may be added or removed per MRT recommendation.

Management Review Team (MRT)

Wacom Corp Management Review Team

Procurement Agent Personnel with title of Buyer / Agent of Wacom Quartz with procurement authority. Note, buyer and procurement agent can be used interchangeably

Purchase Order (PO) Contract commitment to buy that is released in Epicor

Receiver or Receiving Document

Vendor’s packing list

Supplier Scorecard Supplier performance tool used internally at Wacom Quartz to rate suppliers and help identify opportunities for improvement.

Vendor Supplier to Wacom Quartz. This term is used interchangeably with supplier.



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3.0 Procedure

3.1 Part Maintenance - Purchase Parts

3.1.1 New part numbers may be setup following the process outlined in Doc # WI-EPC01 titled “Epicor Part Creation”. After creating a new part number the Buyer will request Quality to review for accuracy and approval prior to sending any RFQ’s or awarding a PO.

3.1.1.1 In addition to following Doc # WI-EPC01 titled “Epicor Part Creation”, best practice is to download the part drawing along with a copy of Engineering/Quality approval to the Prints server (P:\); and then, attach both documents to the Part Maintenance screen under the corresponding drawing revision level in Epicor for future reference. 3.1.1.2 For new part number setup, use Memo Category “New”. See work instructions WI-EM001 titled “Epicor Memos” for more information. 3.1.1.3 Do not add new parts without fully approved drawings. Redline drawings are not sufficient drawings for adding a new part number. See section 3.2 Part Configuration Control for more information.

3.1.2 Part number updates are done in Epicor via the “Part Maintenance” screen. Best practice is to add a “Memo” describing the change and selecting the “Memo Category” that best fits the change. Memos should be added for any update. See work instructions WI-EM001 titled “Epicor Memos” for more information.

3.1.2.1 If the part number update is a drawing revision change, best practice is to download the part drawing to the Prints server (P:\); and then, attach the drawing to the Part Maintenance screen in Epicor for future reference.

3.1.2.1.1 Do not update drawing revision levels without fully approved drawings. Redline drawings are not sufficient for updating the drawing revision level. See section 3.2 Part Configuration Control for more information.

3.2 Part Configuration Control

3.2.1 For all customer controlled drawings, that customer must approve and date or otherwise revision control the document itself before Wacom Quartz will use it for:

a. Quoting b. Customer Purchase Order confirmation c. Pass down to sub-contractors d. Subcomponent incoming Inspection e. Production f. Final Inspection

3.2.2 Hand written or electronic changes on a document (redline drawings) MAY be used but only if controlled by date or other method clearly identified as “production ready” by that customer. In order for a redline drawing to be used for ANY purpose other than engineering consultation with the customer, that drawing must remain unchanged throughout ALL of the process steps identified a. through f. above.



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3.2.3 If a customer does make a controlled change to the revision of a drawing during the a. through f. cycle above; ALL Wacom Quartz activities will reference the past revision, not the new one. (The revision that was current when step a. Quoting began.) 3.2.4 REDLINE OR HAND EDITED COPIES OF DRAWING SHOULD NEVER BE USED FOR:

RFQ to vendors

Quote or Sales Order Confirmations to customers

Inspection

Production 3.2.5 Any exception needs to be presented in front of MRT for approval prior to any deviation. 3.2.5.1 “Material Order” items as defined in SOP-CR01 “Contract Review” may be quoted to vendors without a drawing as long as it can be fully described by a part number or description.

3.3 Stockroom Rules

3.3.1 Stockroom Classifications are defined in Epicor under Material Management / Set up / Warehouse Bin.

3.3.1.1 All part numbers have the “Warehouse” setup as “Main Warehouse”. 3.3.1.2 The “Primary Bin” code is derived to represent the “Description” as closely as possible. The “Description” is worded to make locating the parts as easy as possible. 3.2.1.3 Any new “Warehouse” or “Primary Bin” code requires the Buyer to ask their Manager for approval.

3.3.2 Min / Max Levels 3.3.2.1 The min / max levels in Epicor are designed to promote good supply chain decisions.

3.3.2.1.1 As of the date the SOP was originated the MRT gave approval for what is currently in the system. 3.3.2.1.2 If an employee wants to request a change to the min/max levels on a particular part number or part series in Epicor, they must first run the business case by the Buyer. The Buyer will help build the business case by gathering information on the part number(s) usage for the last two years, last unit price for the part number(s), any relevant price break information to consider, and ideas about how the part number(s) will be stored. 3.3.2.1.3 Once the business case is ready for review and still looking to be a positive case the Buyer will present the information to their Manager for review. The Buyer’s Manager has the discretion to ask for input from other Managers especially if the amount of inventory will significantly increase in terms of dollars on hand and / or space required for storage. 3.3.2.1.4 All min / max levels will be reviewed by the Buyer or Buyer’s Manager on at least a biannual basis to check for changes in demand, price, and/or other relevant information that might affect the business case for min / max levels.

3.3.2.2. Min / Max Record of Change



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3.3.2.2.1 After approval and change of a Min On-Hand, Max On-Hand or any of the settings found on the “Part Maintenance” screen; “Plants / Detail” tab:

A) Add a new MEMO to the record describing the values changed from and to and the date

B) Describe the reason for the change(s) C) Record the responsible Manager(s) approving the change

D) Use the Memo Category of “MRP Changes”. See work instruction # WI – EM001 titled Epicor Memos.

3.3.2.2.2 Records of the Min / Max biannual review will be stored on the “Vendor Material” server under V:\Min and Max Review for a minimum of 3 years without deletion.

3.3.3 Slow Moving Inventory

3.3.3.1 Slow Moving Inventory is defined as inventory that has not been used in two years or more. The Senior Buyer or Buyer’s Manager is to provide a finalized list. 3.3.3.2 A cross functional team will review the slow moving inventory items on at least a biannual basis and will come to an agreement on what to do with each slow moving item. Ideas for what to do with slow moving inventory include but are not limited to: modifying inventory into a useable part, selling parts to the customer/supplier possibly at a discounted price, move inventory into non-inventory, scrap, etc… 3.3.3.2 When slow moving items have been determined to be moved into non-inventory the parts and/or box with parts need to be clearly marked as “Do not count as inventory”.

3.3.3.2.1 Parts that are marked “Do not count as inventory” should not be added back into Epicor without approval by a cross functional team like the team that reviews slow moving inventory. This is to avoid the same parts being removed from the system multiple times.

3.3.3.3 The biannual Slow Moving Review records will be stored on the “Vendor Material” server under V:\Slow Moving for at least 3 years without deletion.

3.4 Material Movement

3.4.1 For general guidelines and detail instructions on receiving, inspection, inventory receipts from Jobs, and stockroom/warehouse, see work instruction WI – IS01 titled “Incoming Stock” along with Form – PNV01 titled “Products needing verification at incoming”.

3.4.1.1 All Wacom Quartz employees may sign for packages unless there is a charge associated with the delivery. If there is a charge, it requires manager approval prior to signing for the package.

3.4.1.2 Only trained receiving personnel are authorized to unbox and receive items in Epicor. This

is to ensure those responsible for receiving get an accurate account of the count and condition of the material as it received. 3.4.2 For general guidelines and detail instructions on “Issue to Jobs” or “Miscellaneous Issue” in Epicor, see work instruction WI-MI01 titled “Job Release and Initial Material Issue”.

3.5 Cycle Counting

3.5.1 Cycle counts are done on a regular basis to help ensure an accurate count of inventory for accounting and supply purposes.



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3.5.1.1 On a monthly basis, the buyer will count the stock bin(s) that the Production Manager, their manager pick(s) and/or are randomly selected by Epicor. 3.5.1.1.1 If adjustments are needed the buyer will follow the work instructions WI – EQA01 “Epicor Quantity Adjustments”. 3.5.1.1.2 All end of the month cycle counts will be recorded on the “Common” server under W:\Inventory MONTH END for at least 5 years without deletion. 3.5.1.2 On at least yearly basis, the buyer, buyer’s manager, and a team of available personnel will count all stock bins. 3.5.1.2.1 If adjustments are needed the buyer and/or buyer’s manager will follow the work instructions WI – EQA01 “Epicor Quantity Adjustments”.

3.5.1.2.2 All end of the year cycle counts will be recorded on the “Vendor Material” server under V:\Year End INV Counts for at least 5 years without deletion.



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4.0 Quality Records & References

4.1 Quality Records

The following table lists records generated and maintained during the Procedures section of this controlled document. Next to each record is show the paragraph number of this or other controlled document where the specific procedures for Identification (I), Collection (C), Indexing (X), Access (A), Filing (F), Storage (S), Maintenance (M), and Disposition (D) of said record can be found.

Record Name I C X A F S M D

Biannual Min/Max Inventory Review

3.3.2.2.2

3.3.2.2.2

3.3.2.2.2

3.3.2.2.2

3.3.2.2.2

3.3.2.2.2

3.3.2.2.2

3.3.2.2.2

Biannual Slow Moving Review

3.3.3.3

3.3.3.3

3.3.3.3

3.3.3.3

3.3.3.3

3.3.3.3

3.3.3.3

3.3.3.3

End of the Month Cycle Counts

3.5.1.1.2

3.5.1.1.2

3.5.1.1.2

3.5.1.1.2

3.5.1.1.2

3.5.1.1.2

3.5.1.1.2

3.5.1.1.2

Year End Inventory Counts

3.5.1.2.2

3.5.1.2.2

3.5.1.2.2

3.5.1.2.2

3.5.1.2.2

3.5.1.2.2

3.5.1.2.2

3.5.1.2.2

4.2 References

The following table lists reference materials mentioned in this controlled document along with their probable accessibility. Unless otherwise noted, these are documents NOT controlled by Wacom Quartz. Note* All references listed with the name in the format “FORM #xxx” are controlled forms; a complete list of which can be found in the Control of Quality Records Procedure, document # SOP #CQR01.

Name Description Accessibility

WI - EPC01 “Epicor Part Creation” a controlled work instruction

Intranet Kiosk or Epicor report “Wacom Controlled Document List.”

WI – EQA01 “Epicor Quantity Adjustments” a controlled work instruction


WI - MI01 “Job Release and Initial Material Issue” a controlled work instruction


WI – IS01 “Incoming Stock” a controlled work instruction


Form – PNV01 “Products Identified as Needing incoming Inspection” a controlled form


WI – EM001 “Epicor Memos” a controlled work instruction


SOP- CR01 “Contract Review” a controlled standard operating procedure


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