Store Management - Issue of Materials (IEM Material Purchase and Store 24March 2021)

Store Management - Issue of Materials

Issue of Materials # Basic Requirement:

Since large sums of money remain blocked in materials, it is essential for the custodian of materials to ensure that the issue of materials is made only under proper authorization.

In fact, authorization of stores is very vital.

Moreover, for efficient operation, the following points to be considered:

(a) Authorization of issues

(b) Identification of requirements

(c) Timing of issues.

 

(a) Authorization of Issues:

Since materials represents money, for the issue of materials there must be some authorisation by responsible officers nominated by the management. Such author­isation should be given clearly in the form of a directive circular.

The object is to avoid misunderstanding and unpleasantness that may arise due to the refusal by the storekeeper to issue materials. In many industries, the designation of the person authorised to draw materials along with their specimen signature are sent to the stores for verification.

The request for issue of materials is invariably made in written form or documents for proper authorisation. It is the primary responsibility of the storekeeper to verify all such documents for proper authorisation before the materials are issued.

Even though certain persons are authorised to draw goods from the stores, management normally imposes a few restrictions for drawal of the goods beyond a certain level of consumption. In all such cases, a clear directive must be given to the stores department.

 

(b) Identification of Requirement:

Largely due to ignorance, in several cases the correct description of the items is not given by the user department. Often the code number given may not tally with the description of the goods, and vice versa. Hence an experienced store-keeper should use his intelligence to identify the mistake and suggest to the indenter the correct item.

Details about materials requirements such as part number, code number, etc. ensure that it is supplied without delay and unnecessary correspondence.

 

(c) Timing of Issue:

The store’s manager should ensure that the indenting departments are fully aware of the timing of issues. However, there may be sudden rush during the peak hours. This may put undue pressure on the stores department and may lead to sudden stoppage of production, in case of undue delay.

So our intelligent store-keeper should study carefully the requirements of various departments and stagger (spread) the timings in such a way that each department can draw their requirements without loss of time.

Issue of Materials # Methods:

Issues from stores must be efficiently organised so that the requirements of the production/operations department can be met.

 

1. Issue on request:

This is the most orthodox way of issue wherein the indenting department normally sends a man and collects the materials from stores.

 

2. Issue per schedule:

In a batch production unit sometime, the requisition for issue of stores is sent well ahead indicating when, i.e., the time and date it is required. The stores department will collect all the materials and keep them ready.

Then it will intimate the indenting department about this. Depending on the prevailing practice of the industry either they are collected from stores or delivered at the shop floor. This is desirable in order to prevent any loss of man-hour caused by sudden absenteeism of a worker in the production department.

 

3. Imprest issues:

In this system a list of certain items especially for tools and components and in specified quantities is approved. The list is then held in a sub-store or tool kit near the shop floor.

 

4. Replacement issue:

In most engineering industries a large number of workshop machines are used. So, there will be considerable requirements of tools and gauges. When a fresh issue has to be made the machine shop operator may be asked to return the old ones to the stores and obtain new one for replacement. This is done without issue notes and the storekeeper has to maintain proper records of such replacement.

 

5. Loan issues:

The issue of stores on loan should, as far as possible, be discouraged. Situations often arise where some number of spares; electrical fitting, etc. are required on emergency basis due to some breakdowns. In such cases the materials are to be issued on a loan basis. However, the storekeeper is to maintain a separate record and ensure that they are returned before year-ending when annual stock-taking begins.

 

6. Stock records:

In a store-house where thousands of transactions take place some numbers of records are to maintained. This makes it possible for the storekeeper to make an entry of all transactions.

The essential part of the storage function is the maintenance of clerical records to record all stock movements accurately in and out of the store. Maintain “Goods Received Books”.