MATERIALS SERVICES

Technology & Consulting :: Maintenance Services

MATERIALS FUNCTIONAL AUDIT

To know where your materials management system is
To reach up-to-date practices
To set benchmarks on business process
To introduce monitoring index / KPIs

Look for Materials Functional Audit (MFA) package of Hofincons, to evaluate your various materials functions. Hofincons is a company with more than 25 years of experience around the globe in oil, petrochemical, chemicals, steel, dairy, textile, cement and bottling industrial sectors.

The MFA covers:

• Purchasing function – reviewing the procurement policies for effective purchasing, vendor development and monitoring philosophies to create visibility, invoking supply chain management concepts.
• Inventory control – reviewing the strategies on stock decisions, movement monitoring, lead-time controlling, categorizing, prioritizing, interchangeability, inventory optimization and surplus/obsolesce handling, suggesting best practices.
• Warehousing functions – reviewing receipt, storage, preservation, handling, securing, issuing, physical verification and shelf-life monitoring methodologies and proposing global practices.
• Information management – reviewing the techniques adopted for managing information like master data (material and vendor) management, computerization and coding, and suggesting improvisation and/or best commercially off the shelf software product (COTSP) solutions.

Hofincons with its versatility in various industrial sectors, around the globe, would suggest the best practices in materials management to improve productivity, increase service levels, optimize inventory, reduce lead-time, upgrade warehouse logistics, improve vendor relations and identify key performance indicators.

Hofincons uses " " a materials effectiveness evaluation tool for this audit, to meet the global practices.

Options

The MFA service can be executed by two different packages. The Lite and the Enterprise versions

• The Lite audit package, covers evaluation of materials functions by a walk-through audit, with a view to evaluate the procedural system for one specific function say, purchase or warehouse.
• The Enterprise version shall covers all the functions of materials, preferably for a longer duration.

Benefits of MFA

The MFA will benefit the client in the following ways:

• Facilitates to procuring the right material at the right cost at the right time
• Enhances visibility in supplier relationship
• Paves way to minimize the procurement lead-time (internal/external)
• Accelerates in controlling the swelling of stock value
• Improves stocking decision, covering stock-out situations
• Throws visibility on fast-moving, A-class and high-stock-value items for closer monitoring
• Prioritizes focus by criticality, insurance and non-moving
• Introduces scientific inventory control norms for optimization
• Revives to establish interchangeability
• Aids in reforming the warehouse functions
• Highlights global IT practices and suggests ways to iron out gaps
• Throttles to fine tune the materials catalogue and the vendor master
• Drives in Key Performance Indicators to control and monitor materials functions
• Guides to global practices for achieving excellence
• Links business process to and

Conclusion

MFA suggests methods for trimming down inventory, corrective measures on most company policies and counsels on best practices. Hence industries that are in need of re-engineering of the existing materials system would be greatly benefited MFA.