ACL Production Variance Report: Bulk Drum Shortage
PRODUCTION VARIANCE REPORT
Background
On completion of the first full inventory count for March 2013, ACL Production incurred a variance of TTD 277 k. The reasons for these variances included:-
Bulk Paint not consumed
Usage not recorded
Normal Loss (Evaporation/Clingage)
Drum Shortage
Packaging use not recorded
Multiple report as Finished
Not defined
These variances were not taken to book until a clear understanding of why it occurred was realized.
As a consequence of the above, it was decided that cycle counts would be implemented from May 2013.
The results of these counts are as follows:-
Month
Production Variance
Reasons
May (cycle count)
(218,201)
Not defined:- 33.2%
Bulk paint not consumed:- 21.7%
Normal loss:- …show more content…
VARIANCE REASON
ACTION PLAN
STATUS
TIME FRAME
RESPONSIBILITY
Usage not Recorded
Implement computers on the Production Floor to facilitate posting of raw materials in SAP as they progress through the plant
SAP is designed to work best by input of material movement as it occurs. The computers have been purchased and locations identified. Installation to occur in October
Oct 15
Ops Manager/IT Manager
Usage not Recorded
Train 1 person to do the posting of raw materials in SAP used in Dispersion, Extension, QC and Filling
An OJT will be sought and trained to do the posting on SAP
Oct 30
Ops Manager/HR/IT Manager
Usage not recorded, Raw Materials under consumed, Bulk paint not consumed.
Separation of duties re report as finished transaction for Batches and Ending of
Background
On completion of the first full inventory count for March 2013, ACL Production incurred a variance of TTD 277 k. The reasons for these variances included:-
Bulk Paint not consumed
Usage not recorded
Normal Loss (Evaporation/Clingage)
Drum Shortage
Packaging use not recorded
Multiple report as Finished
Not defined
These variances were not taken to book until a clear understanding of why it occurred was realized.
As a consequence of the above, it was decided that cycle counts would be implemented from May 2013.
The results of these counts are as follows:-
Month
Production Variance
Reasons
May (cycle count)
(218,201)
Not defined:- 33.2%
Bulk paint not consumed:- 21.7%
Normal loss:- …show more content…
VARIANCE REASON
ACTION PLAN
STATUS
TIME FRAME
RESPONSIBILITY
Usage not Recorded
Implement computers on the Production Floor to facilitate posting of raw materials in SAP as they progress through the plant
SAP is designed to work best by input of material movement as it occurs. The computers have been purchased and locations identified. Installation to occur in October
Oct 15
Ops Manager/IT Manager
Usage not Recorded
Train 1 person to do the posting of raw materials in SAP used in Dispersion, Extension, QC and Filling
An OJT will be sought and trained to do the posting on SAP
Oct 30
Ops Manager/HR/IT Manager
Usage not recorded, Raw Materials under consumed, Bulk paint not consumed.
Separation of duties re report as finished transaction for Batches and Ending of