IM Plant Floor Inventory Cycle count by storage Location in a simplified fashion. Bill Sorokes Juan Tovar

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1 IM Plant Floor Inventory Cycle count by storage Location in a simplified fashion Bill Sorokes Juan Tovar

2 LEARNING POINTS A simple straight-forward process for completing a shop floor inventory / cycle count Maintain Inventory accuracy Processes for generating inventory tags, recording counts and reporting Post Inventory Documents with Standard SAP functionality

3 IM Plant Floor Inventory Cycle count by storage Location in a simplified fashion Final Version 1 8/14/07

4 EATON CORPORATION Founded in 1911 by J.O. Eaton Chairman & CEO Alexander M. Cutler Headquarters: Dublin, Ireland Key locations in Cleveland, Ohio; Shanghai, China; Morges, Switzerland; Sao Paulo, Brazil Innovation Centers in regions around the world Customers in more than 175 countries Sales of $21.8 billion* 50% of sales outside the U.S. Approximately 103,000 employees * 2012 Sales Pro-forma, including Cooper 2013 Eaton. All rights reserved 4

5 EATON S BUSINESSES Electrical Sector $13.2 B Sales* Industrial Sector $8.6 B Sales Electrical Products Hydraulics Aerospace Electrical Systems & Services Vehicle * 2012 Sales by Sector Pro-forma, including Cooper 2013 Eaton. All rights reserved 5

6 Global Footprint and Scale Manufacturing: Australia Brazil Canada China Colombia France Germany Greece Hungary India Korea Mexico Netherlands Norway Romania Saudi Arabia Singapore Spain Taiwan Tunisia UAE United Kingdom United States MANUFACTURING SALES Cooper Manufactures In 23 Countries, Sells In ~100, and has 26,000 Employees Worldwide 6

7 Production Floor IM Inventory Process Plant Mangement Production Floor Supervision Counts Loose Materials Production Floor Counts In Process Finance Plant management sets floor cycle count dates and Schedule Cell supervision produces tags ZIMTAG Stop production and all inventory movement ZIMINV Inventory Tags Supervision Identifies in Process inventory identifying production order no and material no and operation to completion Counting team starts counting and tagging Counting team requests additonal blank tags as required Supervision Identifies Each In process Lot and Appoints Counters In Process Production Order Lots are counted Count Form Simple Process? Upon completion all inventory should be tagged Audit Counts Recount As Necessary Upon Completion Counts and identification are audited Audit Counts with Production Floor Results Recount Results Recount Good Update system using RF or Manual Keying ZIMPHY Run ZINPROC for each counted lot Tag file ZIMINV is updated with resulting tags Run Missing Tag Report ZTAGREC layout /IMUNACC Missing Tag Report 1 Locate Missing Tags Update system for missing tags using RF or Transaction ZIMTAG Loose parts count complete Run IM Reconciation Report will show both $ and count accuracy ZTAGREC layout / IMTAGREC IM Reconciliation Evaluate Results Evaluate Results 1 Recount and update tags as required ZIMPHY ID Tags to Recount Recount Results Good Run ZIMADJ Will create Physical Inventory Documents Production floor supervisor runs MI20 and adjusts based upon security level Any Remaining above security level Yes Finance processes remaining with MI20 None End End

8 Create Tags Create Tags for in-process Orders Update Counts Verify No missing Tags Tag Reconciliation Update Inventory Documents

9 Processes involved: Generate Inventory Tags for a specific IM Location Considerations for Unrestricted QI, and blocked stock For partially completed production orders where materials are allocated to an operation, generate virtual inventory tags for the component inventory. Allow entry of tag counts directly or through RF Summary Reports for tags between on hand balance and the inventory count: Tag Reconciliation Report Note: Allows for reprinting of specific tags for recount Tag Summary Report Missing Tag Report IM Recount Analysis Report Production Order Tag Reconciliation Report

10 Processes involved: Adjust Physical Inventory Generate physical inventory documents for all materials in the inventory count. Difference List List all of the inventory counts that have been created. Adjustments can be performed. Miscellaneous functions: Tag Recount Tag Reprint All tags, or specific tags can be reprinted. Blank Tag Print Missing Tag Reprint

11 Inventory Dashboard

12 Tags are generated by: Year / Month Plant Storage Location Tags can be generated in advance Stock types are kept separate Cleanup / Reprinting Options Update Inventory Snapshot Tags generated for materials moved after initial run Regenerate (reprint) Delete Old Tags Tag info kept for history Older than 6 months can be deleted

13 Used for in-process production orders, where production is reports at the last operation Tags generated for components allocated to operation completed Allows counting of the partially assembled materials as components since production not yet reported.

14 Quantities are posted With RF or direct input Table entries created Void Tag - enter a V in the field Only for blank tags For material tags, enter 0 quantity

15 Tag Reconciliation Report allows reprint of specific tags for recount Missing Tag Report IM Recount Analysis Report Production Order Tag Reconciliation Report (Reports based on output Layout)

16 Creates Inventory Documents Identifies differences by Material Does not require a PI document per each material Do not have to create the PI document until ready to clear differences

17 Standard SAP Function Allows posting of inventory differences using standard functionality and security (levels)

18

19 Sample Batch Table Data

20 Technical File Layout

21 Sample Tag Layout

22

23 RETURN ON INVESTMENT ROI is achieved by keeping inventory balances on the plant floor correct to minimize parts shortages and production interruptions.

24 BEST PRACTICES Use Standard SAP functionality for posting inventory updates. Simple process for performing a storage location inventory.

25 KEY LEARNINGS Use Standard SAP Functionality whenever possible Keep processes simple, straight-forward and easy to use Customizations have their place

26

27 THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 1012 For ongoing education on this area of focus, visit

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