Hubbell Policies

1. Recording of In-Process

All parts, assemblies and merchandise items not completed in accordance with the existing labor routings are inventoried as "work-in- process". It is important that the correct stage of completion of in-process material is indicated on the tag so that accurate valuation can be made. For SAP sites the quantity should be recorded at the Operational step where it resides on the SAP routing. The Business Unit Controller should work with operations to ensure every effort is made to minimize the amount of WIP present at the timing of the physical inventory count. The foreman or production scheduler for each area, department or section should be assigned the responsibility to review all work-in-process inventoried to see that the proper information is shown on the tag.

2. Job Orders or Specials

All equipment, which is being assembled on Job Orders, should be inventoried by reference to material and labor charged to the job order. It should be determined that such material has actually been delivered to the job.

Normally one tag, accompanied by a copy of the bill of material, is prepared for each job.

D. Verification of Inventory

The Business Unit Controller shall assure completeness and accuracy of the physical inventory. Responsibilities are assigned to Inventory Auditors to make certain observations and perform certain duties, which will verify the accuracy of the inventory.

The following functions shall be performed by Inventory Auditors:

• Observe scale operators to be sure they are operating and reading scales correctly

• Observe tags that have been written, for legibility, correct part numbers, and correct in-process description

• Determine that tags indicate the proper unit of measure such as pieces, pounds, gallons, etc.

• Check the method used in counting for appropriateness

• Make sure the correct tare weight is being used for containers and that calculations-are correct • Inspect all areas or sections to be certain inventory tags have been written on all items

• Stop the movement of any material into or out of areas (except loads being transported to scale) until the area is released

• Make sufficient test counts to assure that the inventory is being properly and correctly counted • Test counts should be directed at the higher dollar value items of inventory targeting that 10 25% of the total value of the inventory counted has been validated by the auditors.

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