Stock Management / Valorization in Optymo
Introduction
One of the important functions of Optymo is inventory
management, following parts purchasing related to production or
customer orders. All the company stocks being managed by Optymo
in accurate and rigorous way, it provides real time information on the
status of inventories to meet production needs, replenishment or global
recovery.
Definition of stocks in Optymo
The diagram above shows how Optymo interacts with the various
departments of the company, and how various actions are sequenced
and exchange data. The way the tasks are sequenced will impact the
use of stocks and positioning of parts in these stocks. Optymo includes
2 types of stocks:
1.
Internal stocks: these stocks are detailed but limited in number
(6). The level of detail to track the parts in stock according to
predefined status
2. External Stocks: these stocks are less detailed but almost
unlimited in number (65000). These stocks are generally used to
track inventory left on consignment with subcontractors or
customers stocks
Predefined parts status for internal stocks are: Quarantine,
Usable, Reserved, Floor and Assembled. Note that the associated
labels in tables can be changed to be more significant for the company.
For external stock, the only possible parts status is "usable". Parts can
be transferred from an external to an internal stock or vice versa but
only in usable condition. Note that:
1. The parts may go through a stage of quality validation before
being declared "Usable"
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Parts can be reserved for sales order or a work order (e.g. for
internal production)
3. Parts reserved go through an "intermediate" state called floor,
meaning they are placed on the production area, but are not yet
"mounted" and can therefore potentially be reallocated to
another production
4. Once the production is completed, the manufacturing stock goes
to zero, while the usable stock of finished products will pass to +
x.
The diagram below shows how the parts change status in internal
stocks, according to operator actions or events:
2.
***Note 1: there are also non-storable parts, these parts have an infinite
usable stock, and they do not cause any transaction in inventory (and will have no
impact on the value of the inventory). This may correspond to items that the user
does not want to manage or to services.
***Note 2: the view of a part indicates the quantities in different status, as
well as the ordered quantities, those however do not belong to any stock and
therefore do not impact (logically) the overall stock value.
Transactions of inputs and outputs
Each change causes stock archiving the transaction in history.
Each transaction is labeled with the reason for the transaction. The
patterns of transactions (Reservation, Storage of finished product,
Delivery, etc ...) allow then to get report on the stock inputs/outputs.
Archived transactions also allow calculating the stock value at a given
date or calculate the variation of the stock between two dates.
Traceability of parts in Optymo
In the electronics industry, traceability of parts is essential. Some
applications require a high level of traceability for safety issues, but it is
also necessary to ensure adequate traceability for various other needs
such as repair, correction problem, obsolescence of components ...
We can differentiate different levels of traceability in Optymo stock
management:
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1.
Non traceable parts: only information about quantity (and value)
are retained
2.
Traceable parts (automatic): each entry in stock leads to the
creation of a lot that keeps additional information
a. Creation date of the lot
b. Lot number
c. Provenance: purchase and order number, production or
manual entry
d. Source: Part from another stock (transfer)
e. Type of lot: used, reserved, etc.
3.
Traceable parts (manual): same as automatic, but with more
information:
a. Serial number (start-end)
b. Expiration date
Unlike automatic batch, the user must enter the number itself (lot
and serial) when creating the batch (reception of a supplier order or
production start).
Value of parts and inventory
For each quantity and for each stock (S *) there is a value (V *) in
the base currency (this currency is defined when initializing Optymo).
When entering a part in stock, its value is added to the inventory (see
below (stocks inputs/outputs). During removing a part, the value
deduced from the inventory depends on the selected mode (set in
System Preferences). Optymo offers the following possibilities:
1.
Undetermined: the average value is used. This mode is
mandatory for non-traceable items
2.
First In/First Out (FIFO): the value of the oldest lot is used. If
several lots are required to cover the entire quantity used, the
derived value is the sum value of all lots. For a partially consumed
lot, the value deduced is the average value for this lot
3.
First In/Last Out (FILO): the value of the most recent batch is
used
For lots traced manually, the retained value is that of the lot(s)
selected by the user.
Note also that the non-storable parts (Usable infinite) have zero
unit value and thus will have no impact on the valuation of inventory
(Value = 0).
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Stock Inputs and Outputs, impact on stock value
Each part entered or removed in Optymo stock will impact the
stock valuation. The following rules are applied to calculate the
recovery.
For inputs:
1.
Purchasing (supplier purchase orders): upon receipt of the parts,
the value entered in the inventories is generally the purchasing
price. It is possible to include external costs (e.g. breakdown of
the cost of transport for parts received). If the purchase is made in
a foreign currency, the current exchange rate is applied.
Exchange rates are entered manually in the currency file system
or updated automatically by a specific IP agent (Optymo option). If
the purchase price is changed (upon receipt of the invoice, for
example), the value entered in stock does not change (if
necessary, cancel the reception and do it again at the new price)
2.
Production (storage of a finished good): at storage of the
finished product (final stage in the production process), the value
of the product (which is actually managed in the stock as a
normal part) is entered in the stock. This value is composed of the
cost of the components, the cost of labor (HR) and production
costs (Tools). All these elements are defined in the Optymo
database for each product
3.
Manual adjustment: this happens when manually changing the
quantity and/or value of a part. Storage is a positive input and
destocking a negative input. Manual adjustments are usually
made during the control (counting) of the physical inventory
For outputs:
1.
Sales (Customers purchase orders): at delivery of a part, its
value is removed from the stock. This is the value of the part
when it was reserved for the related Customer Order, the sales
price is not taken into account
2.
Production (consumption of raw material): when production
stage ends, the value of the related parts is removed from the
stock. Similarly when a part is rejected (defective part) or lost (loss
of the subcontractor)
Some transactions have no impact on the value of the inventory
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to the extent that they correspond to status changes and not actual
inputs or outputs in / from stocks. This is the case for example for
Reservations, transfer to the production floor and manufactured.
Stock revaluation
Some Optymo functions allow reassessing the value of
inventories. This is usually done on parts that have not gone through
transactions for some time. The reassessment may materialize in a
decrease or an increase in values, but in all cases, this leads to manual
adjustments.
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