Hubbell Policies

D. Personnel

Instructions should include an accurate estimate of the number of employees required. Advance training should be provided to all personnel participating in the physical inventory.

1) Selection

The inventory supervisor establishes the number of employees required for their area based on the quantities and configuration of the materials to be counted in the areas under his/her supervision. Assignment of employees gives recognition to needed qualifications, including the ability to operate material handling equipment, familiarity with scales, and prior inventory experience.

2) Training Session

Preliminary planning should include an adequate training program covering the following:

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Pre-inventory counting

• Counting techniques including scale operation and weigh counting • Tag writing • Test counts • Tag control and release responsibilities

E. Pre-Inventory Plant Preparations

Instructions should be given on organizing material to be inventoried, processing scrap and rejected materials, identifying excess and obsolete stock and pre-inventory counting.

1. Arranging Material

Materials should be placed in proper bins or racks and arranged for ease of accessibility. Excess floor stock should be sorted, identified, and returned to bins or other storage areas. Customer consigned stock on hand should be segregated and marked "Do Not Inventory".

Stock bins and racks should be clearly identified with part numbers and/or descriptions. Stock pans, tote boxes, pallet frames and other containers should be clearly marked to indicate current tare weight.

2. Processing Scrap and Rejected Material

Rejected material and accumulated scrap should be processed and disposed of prior to inventory. Rejected material that can be reclaimed should be reworked and returned to stock. Scrap should be removed from the premises. If scrap tickets on defective material have not been processed, the material should be inventoried. If it is not possible to remove scrap from the premises, it should be segregated and marked “ Scrap – Do Not Inventory” .

3. Processing Obsolete and Excess Material

All obsolete and excess material shall be counted at the time of the physical inventory, Contact the Corporate Controller in regard to unusual excess inventory conditions.

4. Pre-Inventory Counting

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