Title: Raw Material Reconciliation Procedure
Objective:
To ensure that there is an accurate and regular reconciliation of raw materials available in the inventory, incoming materials, and materials used in production at all times.
Scope:
This SOP applies to all departments that handle raw materials, including those who:
– Receive, inspect, and process incoming raw materials
– Store raw materials
– Issue raw materials to production
– Utilize raw materials in production
– Monitor inventory and reconciliation activities
Responsibilities:
The following individuals/entities have specific responsibilities in implementing this SOP:
1. Raw Material Receivers:
– Confirm the accuracy of the delivery documents- ensuring they match what was received
– Inspect the physical item(s) for quality check and quantity verification.
– Record the materials received in the inventory reconciliation log.
2. Production Supervisors:
– Submit necessary requests for raw materials that are required upon seeing them to be running out of stock.
– Ensure that the issued materials are being utilized correctly and efficiently in production while minimizing waste
– Submit timely communication requests for inability to complete production that relates to a shortage of raw materials
– Ensure a timely and accurate reconciliation of the production process log that reconciles consumed materials in production
3. Inventory Management Team:
– Regularly carry out an audit to check all outgoing and incoming materials
– Update the inventory control system as soon as all materials are received, used, or rejected
– Perform periodic reconciliation of the inventory management system.
4. Quality Control (QC) Team:
– Audit the raw materials upon receipt to ensure quality is met with a Physical inspection or via taste-tests
– Issue a Quality Alert for nonconforming materials according to Standard Operating Procedure
– Track, document and communicate the quantity of nonconforming materials identified
Procedure:
1. Receive and Inspect Raw Materials:
All raw materials should be received and inspected before being added to the inventory management system. The receiver confirms the delivered quantity by counting and weighing the materials. Upon the evaluation of the items, they document the materials in the inventory management system. They document the received inventory, which should include the received quantity, shipping date, delivery date, and the supplier details.
If any raw material is deemed to be non-conforming, the supplier must be contacted clearly documenting relevant data for further action.
2. Storage of Raw Materials:
The inventory management team ensures that all raw materials are stored in their correct locations in the warehouse.
They carry out periodic checks to confirm that all materials are stored in designated locations and in a manner that prevents contamination or damage.
3. Issuing Raw Materials for Production:
The inventory management team and/or production supervisors ensure that issued raw materials to a production team are accurately documented in the inventory reconciliation log.
4. Utilization of Raw Materials in Production:
The production team utilizes the issued raw materials by following the approved standard operating procedures (SOPs). They document the quantity of raw materials used for every production batch with high accuracy to ensure the usage quantity is properly reconciled with the issued inventory.
5. Raw Material Reconciliation:
The inventory management team reconciles the production process logs against the physical inventory. The reconciliation process should document the quantity of raw materials utilized in production, discrepancies between inventory usage, and any adjustments made to reconcile the inventory to the physical items in storage.
The inventory management team carries out a periodic audit of the reconciliation process to ensure the integrity of the inventory control system.
6. Nonconforming Material Management:
The quality control (QC) team documents any non-conforming issues found during the raw material inspection process. They work with the affected entities to develop a corrective action plan.
If nonconforming materials are found during the reconciliation process, the nonconforming materials should be tracked, documented, and communicated according to the proper standard operating procedure (SOP).
7. Continuous Improvement:
Continuous improvement is necessary to keep up with ever-changing inventory needs and support process improvement teams with material usage data.
The inventory team reviews the reconciliation logs with nonconforming material reports to look for trends, opportunities for improvement, and make recommendations to support better inventory control processes in a timely manner.
Revision History:
Any revisions to this SOP must be documented, reviewed, and approved by Quality Control and continuous improvement teams. The updated version should be communicated to all relevant parties.
Note:
Any failure to follow the documented steps in this SOP could result in inaccurate inventory management, non-conforming product, or a significant issue with financial and operational accuracy within the company.