Error Proofing - Receiving Scanning To Receive

1. Error Proofing - ReceivingScanning To Receive MMUGMarch 21, 2005

2. Challenges • Lot’s of potential for error at the receiving dock • Incorrect quantity recorded • Incorrect part number recorded • Receipt not entered • Receipt entered more than once • Reduce time spent processing receipts • Validating receipt quantities • Handling paperwork • Processing payment

3. Tools Available • Supplier labels • Advance Shipping Notices (ASNs) • Shop Floor Technology • MFG/PRO Evaluated Receipts Settlement (ERS)

4. Process Overview MFG/PRO ASN Sent - PO Shipper Create Supplier Ships Receipt Discrepancy Report AP Processing (ERS) Receipt Transactions Processed Quantities Compared Material Arrives w/ Paperwork Labels Are Scanned PO Shipper Confirm PO Receipts

5. Prerequisite # 1 – Supplier Labels • Publish a label specification – see AIAG standards for information & guidelines • Require supplier to start labeling to the spec • Enforce the standards via the supplier quality process

6. Prerequisite # 2 – Supplier ASNs • Publish an ASN specification – see AIAG for information and guidelines • Create technology to receive and process ASNs – consider both EDI and web-based approaches • Work with the suppliers to implement Note – the scan to receive process should allow for receiving both with and without an ASN

7. Prerequisite # 3 – Shop Floor Technology • Use RF terminal technology • Support both ASN and non-ASN scenarios • Support multiple POs per inbound supplier shipment • Validate part number / PO# combination (use start & end effective dates) • Compare total quantities scanned to ASN or packing slip quantity by part number

8. Prerequisite # 3 – Shop Floor Technology • Allow for additional scanning if labels were missed • Allow operator to ‘start over’ • Provide ASN look up from MFG/PRO • Provide look up summary of quantities scanned • Consider how to handle the ‘MFG/PRO down’ scenario

9. Let’s Follow The Flow …..

10. Step 1 – Fill In The Header Information • Receiver Number – press Enter to generate a new receiver number. (Enter a Receiver number if you wish to resume receiving against a previous receiver or delete the receiver – F8*) • Supplier Code – scan the supplier code from a label. • ASN - If the suppler is generating ASNs, enter the ASN number. (This is typically the BOL or packing slip number.) Press F3 to generate a list of ASNs from which to pick. • Packing Slip – will automatically be populated when an ASN is present. If no ASN is available enter the number from the packing slip. • All info Correct? – enter “Y” to continue or “N” to change the information on this screen.

11. Header Information – ASN Messages Error message displayed if the ASN entered is not valid. Press Esc to acknowledge the message If an ASN is not entered and one is expected this message is displayed. Enter N to re-enter the ASN number or Y to continue without an ASN.

12. Step 2 – Scan The Container Labels • For each label in the inbound shipment: • Serial # - scan the serial number or Kanban number from the label. (A unique serial number is created using the supplier code and is then displayed.) • Part Number – scan the part number from the label. • P.O. Number – enter the PO number (this is not prompted for once it is entered or retrieved from the ASN) • Packing Slip Qty – the part quantity from the packing slip (this is not prompted for once it is or retrieved from the ASN.) • Label Quantity – scan the quantity from the label. • When all labels have been processed press the Esc key.

13. Step 2 – Scan The Container Labels Note 1 - the last serial number scanned is displayed on the screen for reference purposes. Note 2 – when receiving without an ASN press the F2 key to change either the PO number or packing slip quantity Note 3 - press the F6 key to display a summary of the part numbers and quantities scanned.

14. Step 3 – Upload Information • Press Esc again to upload the receiver to MFG/PRO. • Enter N to return to the label scanning process.

15. Receipt Upload – Quantity Validation Messages Error message displayed if the quantities scanned do not equal the ASN or packing slip quantities. Enter N (or press Esc) to return to label scanning. Enter Y to accept the discrepancy. Message displayed to confirm that the quantities scanned have checked against the ASN or packing slip. Press Esc to send the receipt to MFG/PRO.

16. Receipt Processing In MFG/PRO • One receiver is generated for each PO received. 50 labels @ 12 pieces per were label scanned Note – the 5.13.1 Packing Quantity field is populated with the packing slip qty entered by the operator

17. Error Proofing • Data identifiers in bar code fields are used to insure correct field is being scanned • Part number from label – validated against PO & ASN • Quantity from label – totaled by part number from labels scanned • Each label can be scanned only once – tracked by supplier serial number • Part number & quantities compared to ASN (or packing slip) – operator notified of discrepancies • Transactions are entered into MFG/PRO automatically

18. Lessons Learned • Create reports that summarize data scanned for each receipt • Don’t under estimate the challenges involving supplier label compliance • ASN testing takes time • Consider using Master labels for pallets of totes/boxes to speed up the scanning process