The flow, handling and ordering of materials is critical to the cost recovery model of any business. In the case of SAS, cost recovery is critical due to the long timelines associated with the products being manufactured and also due to the diverse processes and the size of the facility. An initial audit on the premises revealed that material was not always stored in an allocated location. It was also viewed that delivery of the raw material to the production facility was not well coordinated or controlled. It was evident that some raw materials used by SAS have long lead times and therefore control mechanisms for these materials in particular is imperative to avoid delays, costs due to emergency ordering and also overtime. In order to control and minimize shrinkage it is crucial that material is issued and controlled through a defined and well managed system.
