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Populate PFEP Database

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Create a complete replenishment and planning profile for each material item (manufactured and purchased) by populating the PFEP database. The data will be gathered from many different sources, but the primary one will be your ERP/MRP system. The PFEP database will be completed over time, following this Roadmap.

Establish ABC Code Policy

Define and document the ”ABC” code strategy. This step documents the criteria for assigning inventory codes to your purchased and manufactured parts. For example, an “A” item could be any item with a unit cost over $1,000. Normally “A” items represent about 75% of the total inventory value, “B” items are around 20% and “C” items between 5-10%.

Create List of Commodity Codes

Define and document the list of Commodity Codes. Commodity Codes are useful in sorting our parts list into similar types of material. This in turn can help us assign Material Flow chain codes, identify opportunities for Vendor Managed Inventory and supplier consolidation. A typical commodity code would be “Fastener” or “Electronic”.

Create a list of Prep Codes

Define and document the list of prep codes. It is sometimes necessary to perform some work on a part prior to delivering it to the next storage location. For example, a part may need to be cleaned before an operator can use it, and that cleaning is best done in a batch. The Prep Code would be linked to a Standard Operating Procedure that describes how to do the prep. The Prep Code is also printed on the corresponding Kanban card or label.

Create List of Standard Bin Sizes

Define and document the list of standard storage bins. Standardize the types and colors of bins used to store parts, and assign each bin/color a bin code. These codes will later be assigned to each part number during the process of setting up the physical Kanban system.

Establish XYZ Policy

Define and document the ”XYZ” strategy. XYZ codes are useful in determining frequent usage items versus items that are consumed infrequently. “X” would be frequent or regular use, and “Z” would be sporadic or infrequent use.

Document Part Size

Document the physical size of the item using a common unit of measure, like square inches. This will probably require you to physically examine the material. Also make special note of unusual shapes, since that will drive unusual ways of storing and handling the material. This information will be used later on to calculate bin sizes.

Document ESD Requirements

Identify and document parts with ESD requirements. It will be important to identify Electrostatic Discharge sensitive material which will require special handling and special storage containers.

Document Storage Method

Identify and assign the storage method for each item in the PFEP database. One of the initial decisions that will need to be made is how the part will be stored. Bins may accommodate most items, but special consideration will need to be made to unusually shaped parts, heavy parts, large items etc. Try to eliminate the use of dunnage and cardboard throughout the system.

Document Signal Method

Document the signaling method to be used for each item. Options include cards, lights, electronic barcodes, bins with labels and other possibilities.

Document Receiving Method

Document how the item will be received, including whether it will be unpacked, whether receiving inspection or testing is needed.