Stock Counts - Audit Finding Question

J
#1
You are auditing a company and a spot check in the stock area shows 4 of 10stock counts do not match up with the database count.

There is no specific instruction or procedure directly addressing this. (Such as stock counts must be within 5%) or (Physical inventory must be taken every "n" months).
The fact that counts are off doesn't effect the product quality or deliveries as replacement orders are issued when the stock clerk sees that supplies are getting low. (This is a small company ~ about 70 people.)

What section of the ISO 9001:2000 standard do you write it up under?

James
 
Elsmar Forum Sponsor

Jim Wynne

Staff member
Admin
#2
Re: Audit finding question - Stock Counts

You are auditing a company and a spot check in the stock area shows 4 of 10stock counts do not match up with the database count.

There is no specific instruction or procedure directly addressing this. (Such as stock counts must be within 5%) or (Physical inventory must be taken every "n" months).
The fact that counts are off doesn't effect the product quality or deliveries as replacement orders are issued when the stock clerk sees that supplies are getting low. (This is a small company ~ about 70 people.)

What section of the ISO 9001:2000 standard do you write it up under?

James
Sounds like an OFI; if it's an internal audit, the fact that there is no directly relevant ISO requirement is irrelevant.
 
J

jaimezepeda

#4
Re: Audit finding question - Stock Counts

You are auditing a company and a spot check in the stock area shows 4 of 10stock counts do not match up with the database count.

There is no specific instruction or procedure directly addressing this. (Such as stock counts must be within 5%) or (Physical inventory must be taken every "n" months).
The fact that counts are off doesn't effect the product quality or deliveries as replacement orders are issued when the stock clerk sees that supplies are getting low. (This is a small company ~ about 70 people.)

What section of the ISO 9001:2000 standard do you write it up under?

James
This has happened to us during a surveillance audit. The noncoformance report cited clause 7.5.5 of ISO 9001:2000:
The organization shall preserve the conformity of product during internal processing and delivery to the intended destination. This preservation shall include identification, handling, packaging, storage and protection. Preservation shall also apply to the constituents of the part.
The key is "storage" and "constituents of the part." When we were issued the nonconformance the sample taken was smaller than 10 items.

You could also use clause 6.3 b) (if you really stretched it far). There is a section that references "process equipment (... software)." You could make the case that your software is off when compared to the real deal.

Jaime
 
Last edited by a moderator:

Sidney Vianna

Post Responsibly
Staff member
Admin
#5
Re: Audit finding question - Stock Counts

The key is "storage" and "constituents of the part." When we were issued the nonconformance the sample taken was smaller than 10 items.
Even this is a stretch. Like Jim said, there is no DIRECT requirement in ISO 9001:2000 for that. On the other hand, if you are going to go through the trouble of checking the accuracy of your inventory, you want to make sure that you are doing it right. Unless there is objective evidence that inaccurate inventory counts are leading to customer satisfaction problems, due to e.g. late deliveries, I don't believe that a non-conformity is justified.

On the other hand, if your inventory is disappearing:magic:, maybe you should install a hidden cam on the back door and call the :modcop:
 

Randy

Super Moderator
#6
Re: Audit finding question - Stock Counts

Yeah man, based on the conditions you described this would be something woth noting and that's about it.
 

Al Rosen

Staff member
Super Moderator
#9
Re: Audit finding question - Stock Counts

I think you're getting carried away. The next time someone writes a letter and misspells a word, they should be written up. I don't know what clause (maybe Santa) but give me some time and I can get creative.
 

Wes Bucey

Quite Involved in Discussions
#10
If it were MY company, I'd appreciate an "Opportunity for Improvement" (OFI) from an auditor so I could launch a "root cause" to determine if I have
  1. omission in data entry
  2. software glitch
  3. theft
ANY of which are a drag on my net profit


I don't see it as a MAJOR nonconformance and I would challenge such a finding because there is no way for an auditor to identify whether I have a bookkeeping error or a problem with protecting my finished goods.
 
Thread starter Similar threads Forum Replies Date
O Inventory control ideas - I have an open stock room with a "sign out" book Manufacturing and Related Processes 9
M Raw stock material testing discrepancy using an XRF (x-ray fluorescence) analyzer Manufacturing and Related Processes 7
M Maximum Height for the stored material or stock materials Occupational Health & Safety Management Standards 1
A AS9102 Delta FAI Require after Rework stock item from stock AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 1
F AS9100 D - Verification of purchased product - Sheet metal and aluminum extrusion stock AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 2
qualprod Stock Reorder point calculation Lean in Manufacturing and Service Industries 1
P Do we need equipment stock control for security company ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 4
J Can you stock parts without an 8130 and issue one at time of sale? Federal Aviation Administration (FAA) Standards and Requirements 2
GoSpeedRacer Dock to Stock for a Medical Device Manufacturer ISO 13485:2016 - Medical Device Quality Management Systems 2
N Control of stock (Off the Shelf) Non-Conforming Material & Product Tags ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 5
J Charpy impact test - Mill cert for API 13CrL80 coupling stock material with is PLS 2 Oil and Gas Industry Standards and Regulations 1
A Implantable Medical Device Consignment Stock - What to consider? ISO 13485:2016 - Medical Device Quality Management Systems 3
L Job Packet for In Stock Parts Manufacturing and Related Processes 8
B Help with interpreting stock market terminologies Coffee Break and Water Cooler Discussions 4
Y Recommendations for Label Printer / Label Stock for On-Device Labels 21 CFR Part 820 - US FDA Quality System Regulations (QSR) 4
G PPAP - Stock Fasteners - Import APQP and PPAP 7
Marc Are you STILL in the Stock Market? World News 1
S Annual Stock Check - Where to add it into our Quality Manual? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 4
D Mixed Level Pull Simulation - Stock Evolution and Machine Load Lean in Manufacturing and Service Industries 3
P Single Use Devices - Surgeon must have backup in stock, just in case? ISO 13485:2016 - Medical Device Quality Management Systems 17
S Implementing Dock To Stock in a Small Machine Shop Misc. Quality Assurance and Business Systems Related Topics 6
M Can sorted returns be returned to stock. Do they need a rework label? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 3
0 Guideline/Method for Raw Material Roll Stock Bioburden Sampling Inspection, Prints (Drawings), Testing, Sampling and Related Topics 1
Stijloor Mulally, Bill Ford awarded more than $98 million in stock World News 1
T Dock to Stock Approval form, link or information Document Control Systems, Procedures, Forms and Templates 3
C 1040 vs. 1040 Modified Bar Stock - Material Question Manufacturing and Related Processes 7
C API Q1/ISO-TS 29001 Periodic Assessment of Stock Oil and Gas Industry Standards and Regulations 3
C Storage Managment (Stock Control and Storage) procedure for Medical Device ISO 13485:2016 - Medical Device Quality Management Systems 3
R Certification and Testing of Raw Aluminum Stock - 7.4.3 question AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 12
D For Reference Only or Calibration/Verification - Tape Measures for cutting bar stock ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 26
D Relying on Supplier Records for Material Traceability - Bar stock and forgings ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 11
M Stores Stock Issuing Process Process Maps, Process Mapping and Turtle Diagrams 5
R Hand tool to measure angles that has been machined into stock Inspection, Prints (Drawings), Testing, Sampling and Related Topics 5
V Implementing Dock-to-Stock when regulated by ISO 13485 and 21CFR820 ISO 13485:2016 - Medical Device Quality Management Systems 12
Stijloor New stock market terms Funny Stuff - Jokes and Humour 4
B Stock Market Pricing Coffee Break and Water Cooler Discussions 16
M Where do you address Stock Recovery? In your corrections and removal procedure? ISO 13485:2016 - Medical Device Quality Management Systems 11
ScottK Portable Hardness Testing and Testers for Incoming Bar Stock Testing Inspection, Prints (Drawings), Testing, Sampling and Related Topics 8
ScottK What do you think of this objective of one of our suppliers (metal bar stock)? Supplier Quality Assurance and other Supplier Issues 8
P Definition Dock-to-Stock Process based on Historical Quality Performance of a Part and Supplier Definitions, Acronyms, Abbreviations and Interpretations Listed Alphabetically 8
ScottK Screw Machine Stock Users - Increase in bent bars on receiving? Manufacturing and Related Processes 9
M Dock to Stock system used as a supplier performance review method Supplier Quality Assurance and other Supplier Issues 8
M Dock to Stock Template for Distributor/Warehouse of Industrial Metals Document Control Systems, Procedures, Forms and Templates 5
K How to implement a Ship-to-Stock Program Effectively Statistical Analysis Tools, Techniques and SPC 4
ScottK What are your feelings on ESOPs (Employee Stock Ownership Plans)? Career and Occupation Discussions 7
M Dock to Stock - How to deal with inspection status requirements Inspection, Prints (Drawings), Testing, Sampling and Related Topics 1
Douglas E. Purdy Storage & Inventory - Assessing Stock for Deterioration at Planned Intervals 7.5.5.1 IATF 16949 - Automotive Quality Systems Standard 9
F Ship-to-Stock Procedure Needed Document Control Systems, Procedures, Forms and Templates 5
C Material / Stock Purge Request Forms Document Control Systems, Procedures, Forms and Templates 5
ScottK How to tell the difference between 303 and 316 Stainless Steel Bar Stock? Inspection, Prints (Drawings), Testing, Sampling and Related Topics 8

Similar threads

Top Bottom