Material Issue and Return Process

Optimizing Material Flow

Efficient material handling is crucial for preventing production delays and inventory shrinkage. A structured process for issuing materials to the shop floor and returning unused items ensures inventory accuracy.

Material Issue Process

The process starts when production planning releases a job card or production order.

1. Material Requisition: Production supervisor raises a Material Requisition Note (MRN) based on the BOM (Bill of Materials).
2. Store Validation: Storekeeper checks stock availability and validates the quantity against the BOM.
3. Physical Issue: Materials are physically handed over using FIFO (First-In, First-Out) method.
4. Documentation: Both parties sign the issue slip, and the inventory system is updated immediately.

Material Return Process

Often, excess material is left after production runs. Returning this correctly is vital.

1. Inspection: Quality checks the leftover material to ensure it is usable.
2. Return Note: A Material Return Note is generated, citing the original Job Order number.
3. Restocking: Storekeeper receives the material and places it back in the designated bin.
4. System Update: Stock levels are increased in the ERP or register.

Best Practices

• Kitting: Pre-pack all materials required for a job order to save issue time.
• Backflushing: For high-volume production, automatically deduct inventory based on finished goods production.
• Digital Tracking: Use barcode scanners to reduce manual entry errors.