COURSE: Inventory Management

VERSION HISTORY

Owner Version (Notes) Date

Mary Florence V. Baltazar V.1 November 11, 2019

Mary Florence V. Baltazar V.2 December 4, 2019

TOTAL RUNNING TIME:

MODULE/LESSON/TOPIC Title: Word count Estimated Status

Run Time
Inventory Accuracy
(minutes)

Course intro

Inventory Accuracy Scenario 1:

Transcription Error

TOTAL

Module 1

Learning Objectives: 

1. Inventory Accuracy

2. Avoiding Inventory Errors

Performance Objectives / Key Behaviors:

1. Root Cause Analysis

2. Best Practice

3. Best Practice in Monitoring; ensuring results

INTRODUCTION

Voice Over (VO) / Background Music (BG) / Sound Effects (SFX) Onscreen Text (OST) / Graphics (GFX)

[0] Show the Production Area with busy workers

[1-2] Female factory worker will appear. She waves to the viewer.
Narrator Female VO

[1] Congratulations!

[2] Welcome to your new assignment!

 [3] Show female factory worker pointing to the Assistant Production Manager

[3] As Assistant Production Manager, your role is to watch over the Production Area.

[4] Show female factory worker pointing at operations. Show tiny explosions in line
production, show people running, boxes piling

[4] Your job is to make sure that everything is running smoothly, operations wise

[5] Show female factory worker narrating on the warehouse

Show cake being
whipped and baked

[5] This requires that Cakes and Pastries are baked correctly, with the right ingredients, [6] Closeup to the female narrator
packed and distributed to [CONFIDENTIAL] on time.
 Pan closely to Transition effect
female narrator

[6] But to be capable of handling this, let’s learn

[7] OST: INVENTORY CONTROL MANAGEMENT

[7] INVENTORY CONTROL MANAGEMENT

[8] OST: Inventory Control Management = Record Accuracy

[8.1] Show process one by one

[8] Inventory Control Management is all about making an accurate record of

[8.1] raw materials, work in process, finished goods, surplus and scrap items according to

[8.2] OST: Inventory Control Policies

Pan closely to
female narrator

[8.2] Inventory Control Policies.

[9] Show an animation of the production line. Pan closely to female narrator. Then
transition effect to…

[9.1]
 Transition effect

[9] As Assistant Production Manager, you need to monitor compliance to Inventory Control
Policies because…

[9.1] even the…

[9.2] Show a note with red cross mark, show peso or dollar sign. Beside it, show broken
machinery with red cross mark.

note with red cross Cakes and pastries Show money and
mark with cross mark down arrow

[10] Pop in narrator to the side, show her presenting Clara.

[9.2] slightest error on record can be costly and it can easily ruin planning and operations. OST:
This interferes with our capacity to bake cakes and produce delicious pastries. It also affects
- Clara
loss and profit margin.
 - Assistant Production Manager

Animation: Show Clara waving

[10] Let’s join Clara, an ASSISTANT PRODUCTION MANAGER who had recently been
transferred to supervise operations at the Greenville Plant.

[11] Highlight & slide Clara to the right side of the screen, arms crossed, confident and
smiling. Then on the same screen, on the left side, show three hypothetical situations for
scenarios

note with red cross note with red cross

mark, show peso or mark, show peso or
dollar sign. dollar sign.

[12.1-12.3] OST:

- Competency Areas
[11] Let’s help her decide the best option to take as she goes through different scenarios
that outline some of the basic challenges in Inventory management. - Training production crew,

- Implementing Inventory Control Procedures,

- And monitoring the system

 Animation: Flash one by one. Red Check mark after each competency area is flashed.

[13] Animation: Show Clara excited, laughing, thumbs up. Production area is behind her.

Show Clara excited,

[12] Each decision will help practice her competencies in laughing, thumbs up

[12.1] Training production crew,

[12.2] Implementing Inventory Control Procedures,

[12.3] And monitoring the system

[14] Show narrator speaking about Clara on the foreground.

[13] Execute the best course of action.

[14] Decide for Clara as you would personally respond to these situations yourself.

SCENARIO 01
 Voice Over (VO) / Background Music (BG) / Sound Effects (SFX) Onscreen Text (OST) / Graphics (GFX)

[0] Show the production area. Pan to a brown-haired young lady in her early
[0] BG: Parkside 20’s. She is holding a clipboard in her hand. She is writing on the clipboard.

[1] OST: Sarah had been working for [THE COMPANY] for the past two years.
She is an Encoder in the Production Area, who turns in accurate and timely
reports on time.
[Show Sarah handing her report to Clara]
 [2] She had been one of Clara’s best staff members.
[3] BG: Old Days

Clara Speech Bubble: Well done, Sarah!

[3.1]BG: Boogiebounce

[3] But lately, she started coming to work late. The quality of her
deliverables had also changed.
[Show Sarah at the warehouse area, writing on a clipboard. A colleague
enters]

[4] BG: After the Soft rains

 [3.1] Encoder 2 Speech Bubble: Sarah, Ms. Clara is requesting for your
Inventory Report. Where is it?

[3.2] Sarah speech bubble: Just a moment!

[Show Sarah writing frantically]

[6] SFX: Screaming

[4] [Show an office. Show Clara seated behind a desk in her office. Show
 Sarah entering the office]
Reference:

[5.1-6.1] BG: After the Soft rains

Sarah speech bubble: Hi, Ms. Clara! I apologize for this tardiness. Here is the
inventory report you requested.

Clara speech bubble: Thank you Sarah. I’ll check these later.
[Show Sarah leaving the office]
[5] OST: Two hours later…
[Show Clara reaching for Sarah’s inventory. Closeup to inventory.]

Closeup to
Show Clara
inventory.
reaching for
Sarah’s inventory

[6] OST: The document is peppered with vague inventory inputs!

[Show Clara perusing the Usage Variance Report, depict her looking
bothered]
[5.1] In one suspicious entry, Sarah only recorded 2 grams of red food
colorant “sent” to the icing line.

[6] Clara thought bubble: This isn’t right. How can it just be two grams of
red food colorant?

[6.1] Closeup to Clara thinking…

Clara thought bubble: I need to get to the bottom of this issue…
 ANALYSIS
Click and show here

Company References

OST: Here are references that can help you understand how to handle the given issue

Usage Variance Report Stock Transfer Order & Stock Transfer Receipt Physical Count Inventory

DP1: Based from your initial assumption, what caused the unclear record?

A - GOOD ANSWER (acceptable, but can be improved) B - BEST ANSWER C – INCORRECT ANSWER (looks feasible; distractor)

Shows: Root Cause Analysis

Shows: Root Cause Analysis
OST: Non-compliance to the inventory process
ANIMATION: Show Clara picking up the phone to
request for Sarah to come see her. She puts the phone
down. She refocuses to examine the forms.
Show Clara perusing the Stock Transfer Order and the
Stock Transfer Receipt. Both show that 2 kilograms
have been moved to the icing line, not 2 grams.
[Just then, Sarah enters the office]
Clara: Oh, Sarah! Please have a seat, I need to clarify
something. I found some issues in the Usage Variance
Report that you prepared. I spotted a suspicious data
entry. You recorded 2 grams of red food colorant used
in the icing line? Please, enlighten me.
[Sarah takes the forms and peruses them.]
Sarah Thought Bubble: Oh no…
Sarah: I am so sorry Ms. Clara. It is my fault. I intended
to offset and reconcile the data later.
Shows: Root Cause Analysis
OST: Wrong manual count
OST: Sarah made an inventory error.
ANIMATION: Show Clara in her office with the
Inventory Records on the Table.
ANIMATION: Show Clara comparing the Usage
Variance Report, Stock Transfer Order, Stock Transfer
Receipt, and Physical Count Inventory. Underline
Clara Thought Bubble: I need to track down the
inventory values to signify that Clara is tracking the
cause of this discrepancy in the inventory. What if
error from one form to the other.
the Stock Clerks made a mistake in their wall-to-wall
count? I need to double check the Physical Count
Inventory Form.
Clara Thought Bubble: based on the stock transfer
order, the volume of food colorant received in the
warehouse is 2 kilograms. The physical count inventory
Clara peruses the Physical Count inventory. highlight
registers 2 kilograms as well.
on the information 2 kilograms. Show it has the same
entry as the Stock Transfer order and the Stock
transfer receipt.
Clara Speech Bubble: If I am correct in my assumption,
Sarah made a mistake in copying the entry from the
Stock Transfer Order and Stock Transfer Receipt. Sarah
Clara Thought Bubble: The manual count and the
made an Inventory error.
stock order transfer has the same value. Therefore,
Sarah did make a mistake in transcribing the entries
for the Usage Variance Report.
 DP2. After getting to the core of the issue, what is the best approach for Clara to enforce compliance?
A - BEST ANSWER
Shows: Best Practice
OST: Talk to Sarah about the ideal inventory process
ANIMATION:
Show Clara and Sarah in Clara’s Office
Clara Speech Bubble: Sarah, as much as you are
familiar with our work process, this is no reason for
you to take the policies we follow for granted. As an
Encoder, your role is not just to copy, you need to
analyse the information you are copying if it makes
sense.
Sarah Speech Bubble: Yes Ma’am.
B – GOOD ANSWER (acceptable, but can be
improved)
Shows: Best Practice
OST: Give Sarah a verbal warning
[Continuation of the previous]
Clara Speech Bubble: Sarah, I’d like to remind you
that Accurate transcription is the heart of the
inventory process. This is not something that I can
overlook.
Sarah Speech Bubble: I apologize Ma’am.
Clara Speech Bubble: You need to be accountable for
your actions. Consider this my first warning. If
something similar happens again, I won’t hesitate to
C - INCORRECT ANSWER (looks feasible; distractor)
Shows: Best Practice
OST: Clara notifies Sarah over the phone on what she
needs to do.
ANIMATION: Show Clara dialling Sarah’s number
Clara Speech Bubble: Hello, Sarah!
Sarah Speech Bubble: Yes, Ma’am?
Clara Speech Bubble: I am not happy. You need to
revise the Usage Variance Report. I saw your
transcription error.
Sarah Speech Bubble: Oh, Ma’am I am so sorry! Please

Clara Speech Bubble: You are a promising employee. I
expect you to rise above this mistake. Don’t let this
happen again.
Sarah Speech Bubble: Understood Ma’am.
A – INCORRECT ANSWER (looks feasible; distractor)
Shows: Best Practice in Monitoring; ensuring results
OST: Do nothing else for Sarah but closely monitor
operations to ensure productivity.
ANIMATION: Clara makes a round all over Greenville
Plant. Show her visiting crucial inventory areas:
Receiving Dock
Clara Speech Bubble: No receipt shall be made without
the Purchase Order & Delivery receipt
The Warehouse
raise the issue up to the HR.
Sarah Speech Bubble: I am sorry Ms. Clara!
DP3. How can Clara ensure long-term staff compliance?
B - GOOD ANSWER (acceptable, but can be improved)
Shows: Best Practice in Monitoring; ensuring results
OST: Closely monitor Sarah’s Performance.
ANIMATION: Show Clara making rounds in the
Production area. She sees Sarah working on raw
material line transfer. She approaches Sarah.
Clara Speech Bubble: hello, how’s it going? Is
everything in order?
Sarah Speech Bubble: Hi Ma’am! I am just finalizing
my report for this shift. This is the new Usage
Variance Report.
give me another chance to amend my gaffe.
Clara Speech Bubble: You should have reviewed your
report before finalizing it on print. This serves as you
verbal warning. I hope this doesn’t happen again.
Sarah Speech Bubble: I promise Ma’am!
C - BEST ANSWER
Shows: Best Practice in Monitoring; ensuring results
OST: Treat Sarah’s story as a general narrative
signifying an APM’s role to monitor staff
performance and compliance.
ANIMATION: Show Clara with the rest of the
production crew during their monthly meeting.
Clara Speech Bubble: Let’s talk about the common
issues you encounter here at work. Who would like to
share?
[Show staff raising their hands. Show Clara writing
their answers on the board]
Clara Speech Bubble: Don’t move line transfer without [Hand the report to Clara] TRANSCRIPTION ERRORS
a valid material reservation slip.
RECORDING WITHOUT ANALYZING

Clara Speech Bubble Did you thoroughly check it this NOT FOLLOWING PROTOCOL
Warehouse Shelves time?

Clara Speech Bubble: Now my second question is…

Clara Speech Bubble: Do a wall-to-wall count this week Sarah Speech Bubble: Yes, Ma’am. What do you think should we do about this?

Production Area Clara Speech Bubble: Very well, I’ll check this later. [show staff actively talking, sharing their ideas on one
another. Sarah calls on three people to answer]

Clara Speech Bubble: No Document, No Movement!

Stock Clerk 1 Speech Bubble: We need to be
committed in following inventory policies.

Show Clara entering her office with a satisfied look in

Stock Clerk 2 Speech Bubble: We must keep an eye
her face.
for discrepancies.

Sarah Speech Bubble: Accurately record all inventory

movements at the time of transaction.

Clara Speech Bubble: You are all correct. But

sometimes, we miss hitting these objectives.

[Show everyone agreeing]


INCORRECT Consequence
OST: Clara grasped and identified the root cause of this
issue. However, her limited outlook about it resulted in
the absence of a far-reaching improvement in staff
compliance to inventory control procedures. She failed
to touch on the heart of the issue.
ANIMATION:
Show Clara on her desk, working on the computer,
making calls, chatting with other supervisors.
Consequences:
GOOD Consequence
OST: Clara is systematized in analysing the root cause
of the error. However, her sole focus on Sarah made
her efforts to teach compliance short-sighted. It did
extend to other workers. It did nothing to inspire
others to do their best.
ANIMATION: Depict Clara speaking to Sarah.
Clara Speech Bubble: Well done Sarah!
OST: Meanwhile, on the other side of the Production
Area…
[Pan camera to the warehouse. Show an employee
encoding on a form…]
Encoder 2 Thought Bubble: This is taking too much of
my time. The maximum capacity of this shelf is 20
boxes of baking soda. I’ll just write 20 boxes in the
stock inventory…
Are you happy with how Clara managed this situation?
Clara Speech Bubble: We should eliminate all reason
for noncompliance. From now on, expect me to pop in
anytime in your workstation. If you have issues at
work, I invite you to approach me. Let’s help one
another and grow our company in the process.
BEST Consequence
OST: Clara’s hands-on approach of mentorship and
monitoring contributed to amending the issue of
Transcription Error. It also kept employees snappy & on
their toes. Clara coached her staff in identifying common
errors. Clara also led them identify by themselves ways of
resolving the issue which highlights on core inventory
protocol. Clara’s emphasis on team spirit and work
responsibility drove their motivation to succeed & comply
because it is for the “greater good”. Because of Clara’s
strategy, Transcription Errors became far reduced.
ANIMATION:
Show Sarah and the entire production staff having another
monthly meeting. Show Clara discussing “Root Cause
Analysis” on the whiteboard.
 If you wish to try again, just click Button 1 to guide Clara make better decisions

If Button 1 is selected by the learner, redirect to CLICK AND SHOW

Button 2: I have helped Clara in the best way I can. I would like to move on to the next Scenario

If Button 2 is selected, proceed to FEEDBACK

Weigh your options carefully because your performance on this course reflects how you would carry out similar decisions in real life.

You have two chances to try on every situation.

CHOOSE WISELY.

FEEDBACK

Coaching compliance to Inventory Control Procedures is a Key Result Area for Assistant Production Managers. To assist them in excellently performing this
hat, APM’s need to identify the cause of slip-up. In this scenario, where the Encoder, Sarah, performs a Transcription Error, Clara, the Assistant Production
Manager is asked to:

● Understand the Root Cause of Inaccuracy in Inventory

● Define Best Practices to Handle Inventory Situations
● Monitor Compliance to Protocol

The challenge to the APM lies in recognising that the error of one employee indicates a learning gap that can be applicable to all. Hence, the APM should
apply the idea of “PREVENTION IS BETTER THAN CURE.” Honing staff accuracy in record keeping for every segment of the supply chain is crucial for it
directly affects Profit and Loss. It is the APM’s duty to monitor staff performance, to train crew members, and to recommend corrective actions as
necessary.
Take note:

● Precise diagnosis of the issue through Root Cause analysis is essential in order to map the correct course of action. This serves as basis for
implementing applicable measure to rehabilitate or improve staff conduct.
● To bridge the learning gap, the APM should be guided by established company policies. Subjective interpretation of these serves as bases for
counselling and to motivate employees toward compliance.
● The APM as a mentor and coach should be firm in justice yet warmly empathize to staff with a human heart.
● The APM should learn how to communicate well and to speak the employees’ language.
● The APM should be guided by foresight to determine Best Practices
● The best way to drive employee compliance is to motivate intrinsically by leading employees to value improvement by conforming to [CONFIDENTIAL]
Inventory Policies