Procedure Manual 2.5 OVERAGE/SHORTAGE/DAMAGED MATERIAL SCOPE

Logistics Insight Corporation – Romulus ODC
Version 2.9
Procedure Manual
Subject: MATERIAL FLOW
July 31, 2014
2.5 OVERAGE/SHORTAGE/DAMAGED MATERIAL
SCOPE
This procedure details the actions to be taken when material is discovered to be an overage,
shortage or damaged (OSD).
RESPONSIBILITY
The ODC Manager is responsible to ensure that this process is maintained. He is also responsible for
the provision of sufficient and adequately trained personnel.
All Supervisors are responsible for managing the day-to-day operation of the process.
All personnel are responsible to immediately report OSD material to their Supervisor.
Questions regarding this procedure should be addressed to the Operations Manager.
MEASURABLES
It is expected that the following elements can be measured.
100% of OSD material will be properly reported to the plant, the ODC and the carrier where
applicable.
100% of Compliance Reports will be accompanied by photos.
100% of damage reports will be forwarded to Supplier Compliance Clerk.
PROCEDURE
Please see the flow chart on the following page.
See Also
Additional information may be found in the following Penske documents



6.25 Overage
6.27 Damaged Freight
6.31 Shortage
Hard copies of this document are considered uncontrolled as of date of printing
Process Owner: Operations Manager
Approved: ODC Manager
Printed: July 31, 2014
Page 1 of 8
Logistics Insight Corporation – Romulus ODC
Version 2.9
Procedure Manual
Subject: MATERIAL FLOW
2.5
July 31, 2014
OVERAGE/SHORTAGE/DAMAGED MATERIAL (continued)
When any material is suspected to be damaged:
Notes
Report to DS immediately
The process for reporting
damaged material is the
same whether the material
is dicovered to be damaged
on arrival or the material is
damaged at the ODC.
DS takes pictures of freight prior to
unload and saves on shared drive
If the material is discovered
to be damaged on arrival,
photos are be taken while
the material is on the I/B
trailer
Euro
freight?
Yes
P3
No
Apply damage sticker to
all 4 sides of the freight
after DS takes pictures
and take pictures after
damage sticker is
affixed to the freight
If damaged at
ODC, so note on
damage sticker.
If the material is damaged at
the ODC, it is so noted on
the Supplier Compliance
Sheet and the carrier is
NOT informed of the
damage.





Forward Supplier
Compliance Sheet to DS
Information
Requirements:
Carrier
Inbound Route #
Trailer Number I/B &
O/B
Part Number
Supplier
DS completes the damaged
freight report
Instructs dockman to move
damaged freight
DS completes Supplier
Complaince sheet and
attaches the photographs
Present Supplier
Complaince Sheet and
photos to OS
OS completes office portion
of Supplier Compliance
Sheet
Office Supervisor emails details,
letter of intent and photos to Plant,
Supplier and I/B Carrier.
CC: Supplier Compliance Clerk
P3
Hard copies of this document are considered uncontrolled as of date of printing
Process Owner: Operations Manager
Approved: ODC Manager
Supplier Compliance email
address:
jtinsley@4linc.com
P3
Printed: July 31, 2014
Page 2 of 8
Logistics Insight Corporation – Romulus ODC
Version 2.9
Procedure Manual
Subject: MATERIAL FLOW
2.5
July 31, 2014
OVERAGE/SHORTAGE/DAMAGED MATERIAL (continued)
P2
P2
Normal inbound
route damage
European freight
damage
OS prints out copies of
emails and attaches them to
Supplier Compliance Sheet
Notify DS of damage, and
take pictures of freight on
inbound trailer
OS files paperwork in
Supplier Compliance
Clerk’s file for review.
Notify Office Supervisor of
damage including all pertinent
information including inbound
shipment, packing slip, part
number etc.
Supplier Compliance
Supervisor stores
paperwork including
pictures in file cabinet.
OS contacts UTI for
best course of action
NOTES
Supplier Compliance email
address:
jtinsley@4linc.com
OS documents action
taken in accordance
with UTI instruction
DS follows UTI
instruction as to what to
do with freight
OS files report with
Supplier Compliance files
with all contacts and
directions made with UTI
End Process
Hard copies of this document are considered uncontrolled as of date of printing
Process Owner: Operations Manager
Approved: ODC Manager
Printed: July 31, 2014
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Logistics Insight Corporation – Romulus ODC
Version 2.9
Procedure Manual
Subject: MATERIAL FLOW
July 31, 2014
2.5 OVERAGE/SHORTAGE/DAMAGED MATERIAL (continued)
Overage/Shortage Process
NOTES
Steps to be followed once a discrepancy has been discovered.
DS retrieves the PQ
report and confirms a
discrepancy does exists
DS = Dock Supervisor
DS retrieves
Initiate the
discrepancy
report
Information to be verified
by the DS when
physically inspecting the
overage/shortage freight:
DS locates the freight
and physically
inspects material
Does a
discrepancy
exist?
Compare part numbers,
quantities, and destinations
on the AIAG label to the
scan quantities on the PQ
report
No
DS instructs
Dock Worker to
correct scan.
Yes
DS takes digital pictures
of all master labels
involved in discrepancy.
DS provides the OS the part #,
discrepancy quantity, destination
plant, discrepancy report, and digital
pictures which are saved on the
shared drive.
OS = Office Supervisor
OS retrieves the
corresponding
packing slip from
outbound file
A = Page 5 - part in
question should not be
shipped to the plant
B = Page 6 - ASN status
The OS researches within
CMMS and fills out the
discrepancy report
A
B
C = Page 7 - Overage part
is only part shipped by
supplier on same day and
there is No ASN
C
Hard copies of this document are considered uncontrolled as of date of printing
Process Owner: Operations Manager
Approved: ODC Manager
D
D = Page 8 - Shortage
discrepancy inbound to the
ODC
Printed: July 31, 2014
Page 4 of 8
Logistics Insight Corporation – Romulus ODC
Version 2.9
Procedure Manual
Subject: MATERIAL FLOW
July 31, 2014
2.5 OVERAGE/SHORTAGE/DAMAGED MATERIAL (continued)
Overage/Shortage Process
Process to follow to ensure of the part in question should not be shipped to
another plant
NOTES
A
From Page 4
OS ensures that the overage
part is not for another plant
OS = Office Supervisor
Using the DAIA screen in CMMS
OS checks the scans to
determine if there is a shortage
to one of the other plants.
The OS cross references the
DAIA screen against the SEBA
screen for the same part in transit
Email discrepancy
information to the
plant, supplier and
I/B carrier
No
EU shipment?
FOR EUROPEAN
SHIPMENTS, CONTACT UTI
WITH DETAILS ON THE
DISCREPANCY. FILE EMAIL
AND ANY RESPONSE WITH
SUPPLIER COMPLIANCE
CLERK
Is the
part for
another
plant?
Yes
Is the freight
still at ODC?
Yes
Move material to the
correct O/B trailer for
the correct plant.
No
OS emails to notify
the LLP and supplier
with detailed
explanation of event
OS records date, time, and
contact name on the
"Supplier Incident Report"
Take action
as directed
OS makes 3 copies of
the "Supplier Incedent
Report" and distributes
them accordingly.
Supplier Incident Report
Distribution:
§ Attach one copy of the
Supplier Incident Report to
each copy of the
corresponding packing slip
§ Forward the orginal
"Supplier Incident Report To
the Supplier Clerk
Process ends
Hard copies of this document are considered uncontrolled as of date of printing
Process Owner: Operations Manager
Approved: ODC Manager
Printed: July 31, 2014
Page 5 of 8
Logistics Insight Corporation – Romulus ODC
Version 2.9
Procedure Manual
Subject: MATERIAL FLOW
July 31, 2014
2.5 OVERAGE/SHORTAGE/DAMAGED MATERIAL (continued)
Overage/Shortage Process
Process taken once it’s been determined if an ASN is present in CMMS
B
Was an
ASN sent?
NOTES
From Page 4
OS uses CMMS
brings up the
part on SEBA
No
OS = Office Supervisor
Yes
(missing from an existing
ASN or incorrect Qty on
the ASN)
C
Does ASN
match the scanned
quantity?
No
Call
Supplier
to fix ASN
Yes
Call Supplier to
verify proper plant
destination
OS emails plant LLP
Process ends
No
Supplier
contacted?
Yes
OS provides an
detailed explanation
of the event
including the p/s #,
part #, actual qty
received and details
of the label/ASN
discrepancy
Verify ASN
has been fixed
DS = Dock Supervisor
Upon request,
email pictures
to LLP group
Process ends
Hard copies of this document are considered uncontrolled as of date of printing
Process Owner: Operations Manager
Approved: ODC Manager
Printed: July 31, 2014
Page 6 of 8
Logistics Insight Corporation – Romulus ODC
Version 2.9
Procedure Manual
Subject: MATERIAL FLOW
July 31, 2014
2.5 OVERAGE/SHORTAGE/DAMAGED MATERIAL (continued)
Overage/Shortage Process
Procedure to follow when the overage part is the only part shipped by the
supplier for that plant, on that day, and there is no ASN
NOTES
C
From Page 4
OS checks the CMMS PCAA screen to see if there
is an ASN for the rest of the parts on the P/S’s
OS = Office Supervisor
Was there
ASN sent?
No
Yes
Yes
Using the
CMMS
PCAA
screen, the
OS enters
P/S
shipping #
to see if
there is an
ASN for the
rest of the
parts
Call Supplier
to send ASN
Is there
a P/S?
No
Call Supplier
to FAX P/S
Supplier
contacted?
Yes
No
Verify
ASN has
been fixed
or faxed
P/S
received
Email pictures, Letter of Intent,
Label serial numbers and other
info to LLP and Supplier
Explanation includes the
P/S #, part #, actual qty
received and master
label information
OS
notifies
DS that
the ASN
correction
has been
made
OS completes contact information
section on the overage checklist
OS notes any
overages on the
P/S
DS = Dock Supervisor
OS returns P/S
to OB file to be
processed
Process ends
Hard copies of this document are considered uncontrolled as of date of printing
Process Owner: Operations Manager
Approved: ODC Manager
Printed: July 31, 2014
Page 7 of 8
Logistics Insight Corporation – Romulus ODC
Version 2.9
Procedure Manual
Subject: MATERIAL FLOW
July 31, 2014
2.5 OVERAGE/SHORTAGE/DAMAGED MATERIAL (continued)
Overage/Shortage Process
Steps to be followed once it is discovered discrepancy is a shortage
inbound to the ODC
NOTES
D
From Page 4
OS determines there is a
shortage when scans do not
match ASN and packing slip
OS = Office Supervisor
OS emails letter of intent to
inbound carrier and supplier
OS prints out scan history and
scan records from LMS system
OS retrieves inbound PQ
from DS or PQ specialist
DS = Dock Supervisor
OS attaches email correspondence
to supplier, plant and inbound
carrier to discrepancy report
OS attaches, inbound PQ,
scan history, scan records
to discrepancy report
OS completes
supplier incident
report & attaches to
packing slip
OS files supplier incident report
in supplier compliance box for
SCC to review
Process ends
Hard copies of this document are considered uncontrolled as of date of printing
Process Owner: Operations Manager
Approved: ODC Manager
Printed: July 31, 2014
Page 8 of 8