Interview transcription

Figure 4.4 is an extract of a transcribed interview (Appendix D1). It shows how the

codes in Table 4.3 were identified from interviewee I1‘s responses to the interview

questions. Each interviewee statement was analysed and assigned a code that best

describes the statement as in interview IQ 1.1.1.

Me: I am going to interview I1 from the ERP at the City of Cape Town. He is responsible for inventory management form the ERP side. Amm!

I1: Amm!

Me: Here is the informed consent form that you are supposed to fill. I1: Yes!

Me: It basically states that you voluntarily took part in this interview to contribute, to assist me to get the results that I am hoping to achieve.

IQ 1.1.1 How are stock-outs experienced at CCT?

Me: The first question that I have is: ―What does out of stock mean from the ERP perspective?‖ I1: The stock-out from the ERP perspective, if I can give and overview is, from the ERP side is, if there is insufficient stock in the bin, and the user required more than what is available. So, although there is stock in the system, but there is insufficient stock for the requirement. And that would constitute from the user‘s perspective a stock-out and not from the view point of inventory management or from the stock perspective, because even if there is one in stock it doesn‘t mean that they are out of stock. But I think that you concern is more related to the fact that service delivery will not happen; therefore, I would formulate a stock-out as a bin where there is zero available or where there is insufficient quantity to serve the end user.

Me: Thank you very much.

Me: Amm! In your experience, how does your line of work impact on stock-outs let‘s say if work is not done properly from your side would result into a stock-outs? For example, say the queries logged with ERP help desk take long to be resolved? What is the impact of that towards stock-outs?

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I1: Stock-out from the ERP perspective is related to the users who experience these situations, and they do not have a full understanding of the system functionality, and how the system operates. This can be attributed to two things: Number one, a lack of planning from inventory management‘s side, when the reorder levels are insufficient for day-to-day usage. Number 2, form the end user where the planning cycle is not planned properly, in other words, they wait until number 99 and they expect stores to be fully compliant with the all the quantities which they want to reserve. The impact that this has from us, the ERP side is again two folded, once a call is logged by the MRP controller who requires information and training on the module, and on the other side form the end user not trained properly. Both these parties log calls with ERP helpdesk to deal with their business processes.

Me: What is done on the normal basis to overcome these challenges?

I1: The training facility form the ERP floor is limited; we have got very little number of employees [sic] that can deal with training the end user and day-to-day resolution of calls that is being logged. The challenge is more in getting business skilled up in their own BP, for them to support their own function and to understand the BP, and how that impacts on the ERP solution in getting their things sorted out. Call on our side is not to resolve the out-of-stock issue but rather how to prevent is by means of proper training.

IQ 1.1.2 How do you identify the materials that stock-out?

Me: Can you determine the history of the material being out of stock? Is it possible to achieve this and then record of the materials being out of stock?

I1: Yes, it is possible to determine the number of times a material was out of stock, amm! Whether that has an influence on service delivery outside there, that we cannot determine, because many users do not make the reservation on the system if they find that there is zero quantity in stock, or insufficient stock in the system. They would then just not do the reservation, but monitor stock levels externally, and only when there is stock in stores create a reservation for consumption. So, to answer the question, we are not fully able to report on how many times the stock-outs occurred and what the reason therefore was. As long as the role players and the users do not use the system properly, there will always be a lack in reporting.

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Me: How do you identify when a material is out of stock at present, let‘s say form the end users perspective?

I1: We only look at zero balances in the system, in other words when the bin constitutes zero that will currently constitute an out of stock situation.

Me: What do you do when you have identified that the material is out of stock, or what should the end users do when they realise that the material is out of stock?

I1: If it is an urgent application, they can source the materials from alternative stores. 2. Ask the MRP controller to adapt and change the MRP perimeters, because the consumption rate or the daily average consumption rate is higher than what was anticipated. The MRP controller would then change the figures and expedite the replenishment process or the purchase orders in the system in order to service the customer.

IQ 1.1.3 How does consistency in your area work with regard to stock-outs?

Me: Have you experienced any inconsistencies with the system? Say for example reports giving incorrect information or the ……PO differing from a requisition kind of scenario?

I1: No, we have not found any anomalies on it. The biggest issue is the vendors delivering late, Amm!, but there is not; SAP is always right, if it is not, then fix it. Amm! When the report is done based on the data that is in the system seem to be correct; if there are purchase orders not delivered or reservations not being collected or reserved incorrectly, that needs to be corrected, then the reporting there after will report the correct information.

Me: What about the physical inventory, the materials in stores? Does it happen that the end user makes a reservation knowing that there are 10 items now, when the person gets to the stores, suddenly there is only 8 items?

I1: Yes, that happens, mainly due to pilferage, breakages happening, incorrect materials being picked and issued; therefore, there are some inconsistencies when it comes to physical stock levels versus SAP stock levels. This is being rectified by physical inventory procedures, which happen at least once per year. They also have daily checks on stock levels on materials that moved, and therefore they should be able to pick it up earlier. Unfortunately SAP will not be able to give you detail on these types of problems where the system reflected a higher stock value than what was physically in the bin.

Figure 4.4: Interview transcript for I1

(Appendix D1)