1

By Group Internal Audit Department

Feb 2019
 Objective and Limitation

Objective

• Assess the existing process of stock lot operation of the factory stock lots department after implementing the
ZEPIAS program with the view to optimize the post production holding at Hirdaramani Group.

ZEPIAS Program ensures

1. Defects garments are transferred to the factory stock lot division on regular time interval

2. Stock Lots garments are stored in methodical manner and proper inventory is maintained in AX.

3. Garments are transferred to group stock lot division on agreed regular time interval

4. Standard documentation and record keeping

Scope Limitation

This report does not address the procedure on stock lot of raw material ( Fabrics, Accessories, Cartons, etc. )
Existing Process flow for Rejects Identified at the production
flow
Rejects identified by the end line QA Hold to be sent out for central stock lot

QA executives verify and confirm the Perform the grading of stock lot
quantity is not repairable quantities by stock lot dept.

QA executives post the transfer entry in Retain the quantities until the final
AX system garment reconciliation prepared to
ensure all the rejects are received.

Respective quantities are handed over to Check against Ax transferred quantity by

stock lot dept. by the QA dept stock lot dept., chop the received seal &
update manual register

Stocklot
Handover Sheet
Existing Process flow for Rejects Identified by the Finishing
department
Rejects identified by final inspection and Hold to be sent out for central stock lot
other check points

QA executives/ QA manger verify and Perform the grading of stock lot

confirm the quantity is not repairable quantities by stock lot dept.

QA executives post the transfer entry in Retain the quantities until the final
AX system garment reconciliation prepared to
ensure all the rejects are received.

Respective quantities are handed over to Check against Ax transferred quantity by

stock lot dept. by the finishing assistant stock lot dept., chop the received seal &
through PO wise Garment Reconciliation update manual register

Garment
Reconciliation
Existing Process flow for SO closed Quantities
Perform the grading of stock lot quantities by
stock lot dept.
Final Shipment completion

In case if the quantity is required for running

Perform Garment reconciliation ( PO SO, it should be transferred to the new SO
wise)

All the stock lot transferred quantity should be

Remaining quantity available should be physically handed over to the stock lot dept.
held until the style is closed

Any quantities used for on going SO it All the remaining good garments will be
should be updated in Ax system transferred to FG - Stock lot warehouse in AX
system
Close SO
Existing Process flow of Transferring the quantities to Central
stock lot
Complete all the Ax transfers and ensure
the receipt of all quantities to the factory
stock lot dept related to the SO Perform adequate level of physical verification
to ensure the Ax balance is in agreement with
the physical quantities.
Perform the grading of stock lot
quantities by stock lot dept.

Upon the receipt of the confirmation,

Prepare detail packing list with style quantities should be sent along with a Ax AD
details and the packing list

Samples of individual style should be sent

to the central stock lot Style details should be written in a paper
outside the arranged box
Recommendation in achieving Zero post production
Immediate Steps
• 100% accurate packing lists to be maintained regarding quantities in factory stock lot department
• If any quantity differences against Ax and physical availability it should be reconciled with valid reasons.