Podcast
Questions and Answers
What is one of the objectives of the Stock Review process?
What is one of the objectives of the Stock Review process?
- Enhance investment recovery (correct)
- Increase stock holding costs
- Reduce user department involvement
- Minimize stock ordering process
Who decides the type and quantity of stock to be held according to the Stocking/Inventory Management Policy?
Who decides the type and quantity of stock to be held according to the Stocking/Inventory Management Policy?
- Management without SCM or User Department consultation
- User Department without SCM consultation
- Supply Chain Management (SCM) in consultation with the User Department (correct)
- SCM without User Department consultation
What is the basis for Inventory Management according to the Stocking/Inventory Management Policy?
What is the basis for Inventory Management according to the Stocking/Inventory Management Policy?
- Pre-set min/max reorder level (correct)
- First come first serve basis
- Random stock level adjustments
- Stock level based on employee preference
What are project materials restricted for according to the Stocking/Inventory Management Policy?
What are project materials restricted for according to the Stocking/Inventory Management Policy?
What does the Stock Review process aim to uncover?
What does the Stock Review process aim to uncover?
What is the objective related to seasonal stock and stock with expiry dates monitoring?
What is the objective related to seasonal stock and stock with expiry dates monitoring?
According to the Stocking/Inventory Management Policy, what should Inventory Management be based on?
According to the Stocking/Inventory Management Policy, what should Inventory Management be based on?
Who should be fully involved in any write-off and disposal decisions according to the Stock Review process?
Who should be fully involved in any write-off and disposal decisions according to the Stock Review process?
What is one of the objectives related to stock review process?
What is one of the objectives related to stock review process?
What does the Stocking/Inventory Management Policy aim to optimize?
What does the Stocking/Inventory Management Policy aim to optimize?
According to the Stocking/Inventory Management Policy, who decides the type and quantum of stock to be held?
According to the Stocking/Inventory Management Policy, who decides the type and quantum of stock to be held?
What is the purpose of spare parts returned to operational inventory?
What is the purpose of spare parts returned to operational inventory?
What does the warehousing policy include?
What does the warehousing policy include?
What is considered to ensure sufficiency and eliminate excess stock?
What is considered to ensure sufficiency and eliminate excess stock?
What do stock review key performance indicators include?
What do stock review key performance indicators include?
What is the responsibility of the Supply Chain Manager (SCM) related to warehouse stock balances?
What is the responsibility of the Supply Chain Manager (SCM) related to warehouse stock balances?
What is included in the warehousing policy?
What is included in the warehousing policy?
What happens to excess or unneeded stock according to the text?
What happens to excess or unneeded stock according to the text?
What do user departments provide for required items?
What do user departments provide for required items?
Study Notes
- The Project Manager and Supply Chain Manager (SCM) review residual material after project completion for potential return to inventory or disposal.
- SCM keeps users informed of warehouse stock balances and consumption patterns during material purchases.
- Stock review policies prioritize lean stocking of office consumables and household goods (Just-In-Time).
- Spare parts returned to operational inventory depend on current stock levels and consumption patterns, or foreseeable use in the next three years or next turnaround-maintenance.
- Warehousing policy includes cyclic and perpetual inventory checks and annual Physical Stock Taking (100%).
- Excess and unmoved stock is reviewed on a quarterly basis, starting with high-value items, and in line with management parameters.
- User departments provide justifications and expected future consumption details for required items.
- Stock requirements are considered against present stock levels to ensure sufficiency and eliminate excess.
- Excess or unneeded stock is communicated to SBUs/CSUs for confirmation and potential transfer or disposal.
- Records of each stock review exercise, including user advice and write-off documents, are maintained.
- Stock review key performance indicators include compliance with stock review targets and frequency of the process.
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Description
Learn about the systematic process for reviewing and disposing of stocks that are no longer required for NNPC Limited operations. Understand the multi-functional approach and involvement of user departments in the write-off and disposal decisions.
