Daily Tally Reconciliation: A Case Study
In the context of daily tally reconciliation, this case study examines the application of the
Business Process Reengineering. For organizations to maintain correct inventory
management, financial cost, and general operational efficiency, tally reconciliation is
crucial. UniDesign Jewellery Pvt Ltd. used BPR to optimize their daily tally
reconciliation process, which led to better accuracy, lower costs, and more customer
happiness. This case study provides a real-world illustration of how this can be done.
Businesses must perform a daily tally reconciliation process to keep correct
inventory records and. This method has historically involved manual tracking, actual
counts, and paper-based documentation, which has resulted in delays, mistakes made
by humans, and operational inefficiencies. An in-depth analysis of UniDesign
Jewellery Pvt Ltd's use of these BPR methodology to speed up daily tally
reconciliation activities is provided in this case study.
UniDesign Jewellery Pvt Ltd Background:
UniDesign Jewellery Pvt Ltd, established in 1995, has a legacy spanning over 60
years. UniDesign Jewellery is proud to have established ourselves as trailblazers in
the fine Jewellery industry. From 1960 to now, UniDesign Jewellery's growth has
been tremendous, driven by research, technology, and a penchant for excellence.
UniDesign Jewellery Pvt Ltd has a global presence in Belgium, India and Hong
Kong.
Challenges Faced by UniDesign Jewellery Pvt Ltd:
The daily tally reconciliation procedure at UniDesign Jewellery Pvt Ltd encountered
difficulties before implementing BPR, including:
Employees had to collect SPO bags and record each item as part of the time-consuming
manual data-collecting procedure, opening the door to mistakes and delays. Because this
process was human, there was a higher chance that errors would be introduced into the
data, reducing its accuracy and usefulness for making decisions. The labour-intensive
procedure could have improved overall operational effectiveness by delaying data
aggregation and reporting.
Stockouts and surplus inventory resulted from the need for real-time visibility into
inventory levels. Businesses needed access to the most recent stock information to track the
flow of their items effectively. As a result, stockouts resulted in missed sales opportunities
and disgruntled consumers when supplies were unavailable when needed. Conversely, poor
visibility also contributed to excess inventory since enterprises may have overstocked
products owing to a lack of knowledge about actual demand. Real-time inventory tracking
and management solutions enable firms to optimize inventory levels, decrease stockouts,
and eliminate idling expenses by giving them immediate visibility into stock levels.
The ineffectiveness of the manual reconciliation procedure led to an inefficient workflow
and required a significant amount of time and energy that might have been better spent
elsewhere. Employees' attention was diverted from more critical and value-added tasks as
they expended a lot of time and energy on the tedious job of manual reconciliation. This
resource allocation harmed the business's overall production and efficiency. The additional
time spent on manual reconciliation harms problem-solving, customer service, and strategy
planning. Automated reconciliation solutions reduce this load, allowing resources to be
directed towards more strategic initiatives, process optimization, and enhanced
organizational performance.
The danger of inaccurate inventory statements, which might result in possible inaccurate
stocks, increased when inventory entry mainly relied on human data entry. Human
mistakes, such as inaccurate data input or missed decimals, can occur during manual data
entry. These errors can influence computations, balances, and overall inventory analysis
throughout the daily tally reporting. A company's genuine inventory health may need to be
accurately reflected in its records, which might result in poor decision-making and
significant revenue loss. The chance of mistakes may decrease significantly by
implementing automated daily tally reconciliation systems with built-in validation checks.
This results in more accurate financial statements and gives stakeholders trustworthy
information for making educated decisions.
Solution: Business Process Reengineering:
UniDesign Jewellery Pvt Ltd adopted BPR methodology to address these issues. The
remedy comprised:
Install bins with the name setting, polishing, filing and pending along with names of responsible
person name as shown in figure.
All the bags from setting, polishing, filing, trolley pending, laser, and stamping should be collected
by QCs of setting, filing and polishing responsible person and deposit to respective bins.
Responsible person (QC) for collecting and keeping bags should be selected by Department
Incharge/supervisor.
Collecting and depositing the bags in bin should be done by responsible person and it is
responsibility of same person to keep the bags from bins to its original place.
Tally clerk takes bags for scanning from bins and also ensure for WIP bag pieces quantity and bag
quantity should be same and keep them back to original bin from he/she took bags.
Responsible person (QC) again will collect bags from bins and will keep bags to its original
position within the department.
Implementation Process:
At UniDesign Jewellery Pvt Ltd (production department), the BPR methodology was
phased in:
Planning and system design:
Understand the requirement of daily tally reconciliation process and understanding the
needs of all stakeholders and customers.
Data integration:
Connecting the all activities together integrating data by pilot test.
Training for employees:
They were given training on operating the new system, understanding data analytics.
Testing and optimization:
The system underwent rigorous testing to ensure accurate data collection, smooth
integration, and top performance.
Go-live and ongoing monitoring:
All departments adopted the system once it had proven reliable, and ongoing
maintenance and monitoring procedures were devised.
Results and Benefits:
The implementation of new methodology of daily tally reconciliation in UniDesign
Jewellery Pvt Ltd's daily tally reconciliation process yielded several benefits,
including:
Enhanced accuracy:
By minimizing disparities and human error, real-time data collection increased
inventory accuracy.
Cost reduction:
Automation and improved efficiency reduced labour costs, optimized stock levels,
and minimized stockouts.
Improved customer satisfaction:
Evenness work distribution reduced the muri from tally clerks and allowed customers
to check product availability, reducing instances of disappointed customers.
Timely decision-making:
Real-time analytics and reports empowered management to make data-driven
decisions promptly.
Scalability and adaptability:
The solution was scalable and adaptable to UniDesign Jewellery Pvt Ltd's evolving
business needs.
Reduction search time:
Easy to locate SPO bags because of uniform work distribution.
Reduction in wait time:
The production department, which was earlier waiting for SPO bags from the artisans
due to daily tally reconciliation, has been reduced by changing the process.
Sustenance:
FMEA and CAPA
Conclusion:
This case study illustrates how UniDesign Jewellery Pvt Ltd successfully
implemented BPR methodology and succeed to streamline their daily tally
reconciliation process. Business in various industries can draw valuable insights from
this case study to explore the potential benefits of adopting BPR methodology in
their own daily tally reconciliation processes.
