Quality control and inventory management
Features August 27, 2019
Quality control (QC) is an essential part of operations for most businesses. Manufacturers have mandatory quality assessment checks before starting any production or selling the finished items.
Quality control involves testing the stock items for standards. If any item fails the testing it is marked as rejected. You can set in the product settings if QC is needed or not. In case QC is required; after every purchase or production the new items are marked as On Hold. These on hold items cannot be issued to anyone unless they are approved by the QC department. Quality control is sometimes done at multiple stages to ensure that the items are 100% defect free.
Stock items which fail quality control need to taken care of. There are 3 main possibilities when a product fails QC;
- Rework or repair the item: You can use a service order to repair rejected items.
- Return the items to the supplier: Use a purchase return document to return items.
- Write off as wastage: Use a write off document to remove rejected items from inventory as loss.
Once the QC department examines the new items they are marked as Approved or Rejected. All the approved items can be used freely anywhere. The rejected items can only be reworked, returned or written off.
Below is a screenshot of a QC order in Sumtracker.
The rejected items are removed from the inventory count. But they are still available in the warehouse as rejected stock. You have to manage the rejected stock for it to get removed from the warehouse. Otherwise it will keep accumulating in the warehouse.
Quality control can also be done for Approved items. For example if you have defective stock returned from the customers,
you can mark it as rejected. The returned stock can now be managed as rejected stock.
This is useful to track items which are getting returned more because of defects.
Another use case for QC is just before shipping to customer. You can do a QC before packing the items so that they are not returned back.
In sumtracker you can get reports for rejections.
- Total value of rejected stock
- Rejections per supplier and frequency of rejections per 100 items
- Rejection causes
Using sumtracker you can be sure that no item can escape from quality control. And all rejected items will be accounted for.
For more details on how can Sumtracker manage your inventory operations schedule a demo at https://www.sumtracker.com/free-demo/