P.S. About conversion rates

This is a work note I took in 1999 when I was in property management, and it is still useful today.

1). We have a wrong habit

Qingming Festival, Wise Hardware Factory sent 434 heads of 18 holes in my factory, the quantity indicated on the delivery note is 7338PCS, and the acceptance of our sending and receiving team is 7440PCS, more than 102PCS, why is this?

After I went to collect it, it was actually 7336PCS, which is about the same as the number of delivery notes.

On April 7th, the factory sent 434 heads of 3731PCS of the same item, and the acceptance quantity of our sending and receiving personnel was the same as that of the delivery note, and I found that there was less than 42PCS;

That's the conversion at work!

THE CONVERSION RATE BROUGHT BY WISE IS 20.7PCS/KG, WHICH IS DETERMINED TO BE 21PCS/KG AFTER BEING MEASURED BY OUR SENDING AND RECEIVING TEAM, AND REQUIRES WISE HARDWARE FACTORY TO DELIVER AT THIS CONVERSION RATE IN THE FUTURE.

THE CONVERSION RATE THAT I WENT TO MEASURE WAS ONLY 20.706PCS/KG, AND I TOLD THE SENDING AND RECEIVING PERSONNEL MANY TIMES TO QUANTIFY IT, BUT THEY DIDN'T LISTEN, THE POWER WAS IN THEIR HANDS, AND I COULD ONLY BUILD YÌ, IF I DIDN'T LISTEN, WHY SHOULD I BOTHER TO CORRECT IT FORCEFULLY?

In this way, every time our company enters this material with a grade number of 110050, it is accepted with a conversion rate of 21, which becomes a loss of 0.294PCS per KG.

Each piece is 50KG, and the book acceptance quantity of each piece becomes 1050 and each piece is 14.7PCS less, because the integer reason is actually less than 15PCS. At that time, our company's monthly demand for this kind of material was as high as about 1.2 million in those years! That is to say, we had to collect 16800PCS less every month, which is the amount of 8400PCS hubs!

16800PCS is the amount of the difference in the material account in a month, and 201600PCS in a year! In the middle, no matter how our account is adjusted, this difference cannot be erased! This is just an example.

It is normal to have a difference of 200,000 a year, no wonder we used to use 150,000 301 medium tube 54 long specifications, and it is not strange that there is a difference of about 6,000 per month.

According to our conversion rate, people can earn 16,800 per month.

Obviously, the conversion rate brought by the people during the delivery of the Qingming Festival is basically correct, why do we want to make a mistake? Change it to the wrong one to damage the interests of the company?

That's why we have a wrong habit: use whole numbers for conversion rates!

After many times, there was an argument with the sender and receiver, and they were also very angry, and they rightly weighed it again in front of us! I saw that Hao Xuan was not angry to death! In their concept, the conversion rate is "how many kilograms"!

With such a concept to take the conversion rate, the same 110050 material, 20 is less than 1 kilogram, 21 is a little more than 1 kilogram, of course it is 21!" "You don't let me take 21, do you want me to take 20!"

Their reasons are still big! I didn't argue with them! So at that time, property management used integers as conversion rates. FOR EXAMPLE, IN THE CT TUBE, I REMEMBER VERY WELL THAT TAKING THE TENTH DIGIT IS THE CONVERSION RATE OF 4.3PCS/KG, AND TAKING THE WHOLE NUMBER IS 4PCS. At that time, there were 120,000 per month in the peak season, and the result was that we paid Hongguang 30,000 kilograms of heat treatment fees in round numbers, but in fact, we only needed to pay 27,907 kilograms of fees!

At that time, this concept of property management was dominant, even in other branches of the company.

It wasn't until I was promoted to assistant that I slowly corrected this mistake in property management, and every time I changed the property management leader, I would explain to him the only correct understanding of the conversion rate, and this kind of thinking has dominated the property management class over the years.

But today, the turnover of people is too frequent, and there are many people who don't understand what the real conversion rate is.

And I speculate that our Kunshan branch may still be implementing the conversion rate of "how many kilograms", so they will complain many times that the amount of materials we support is insufficient. Regarding this point, I originally had a plan to communicate with Associate Lai to confirm it, but I didn't wait, and I had to give up with a gentle knife on my neck.

The 301 pipe 54 long specifications mentioned earlier, this kind of pipe, the previous conversion rate is 50PCS/KG, and later changed to double grinding and revised to 48PCS/KG, not long ago I went to measure, only 46.310PCS/KG, less than the initial 3.69PCS/KG, this change in the conversion rate of the pipe, reflects that there are many problems in our property management measurement, the most prominent of which is:

2). Distortion of the conversion rate

Or take the CT tube as an example, and compare it with the target of 10PCS/month we designed

THE CONVERSION RATE IS 4PCS/KG, 1 TON IS 4000PCS, 100,000=25000KG

THE CONVERSION RATE IS 4.3PCS/KG, 1 TON IS 4300PCS, 100,000 = 23255.8KG, MINUS 1744KG = 7500PCS

THE CONVERSION RATE IS 4.31PCS/KG, 1 TON IS 4310PCS, 100,000 = 23201.85KG, MINUS 1798.14KG = 7750PCS

THE CONVERSION RATE IS 4.315PCS/KG, 1 TON IS 4315PCS, 100,000 = 23174.971KG, MINUS 1825.290KG=7875PCS

Not to mention the cost, if we prepare the material at different conversion rates, there will be a large difference in quantity.

Take the specifications of 301 pipe 54 long as an example, the amount of April this year is smaller, counting 181613PCS, to make a comparison with this quantity, if the latest conversion rate of 46.310 is used as a benchmark, then:

THE CONVERSION RATE IS 50PCS/KGà181613PCS=3632.26KG*46.31=168210-181613=-13403PCS

THE CONVERSION RATE IS 48PCS/KGà181613PCS=3783.604KG*46.31=175219-181613=-6394PCS

THE CONVERSION RATE IS 46.310PCS/KGà181613PCS/46.310=3921.680KG

When we send the material of the 301 middle pipe to the hub group, it is the material sent by the KGx conversion rate, and the 46.310 plan is to prepare 3921.68KG of semi-finished pipe in April, if it is prepared with 50PCS/KG, it is enough to prepare 3632.26KG - in that case, it will cause more than 13403 hubs to have no middle tube to use, and such a lack of material will plague our production management and business.

It can be seen that the accuracy of the conversion rate cannot be ignored. [Diary on May 2, 1999]

3). It is also difficult to implement the simple truth

Break down stereotypes and bad habits, unify understanding, establish new concepts and concepts, formulate operating standards, and manage them according to the provisions of ISO. This is not just talking, but a problem that property management needs to really solve.

At present, our property management section has not yet formulated the operation standard and SOP operation standard, and the standardization process is very poor. There is no axis of standard behavior, there is too much arbitrariness, and the operation fluctuates and swings, and the amplitude is bizarre.

Just look at the conversion rate:

We have an operating standard for property management, which requires that the error rate of material quantity shall not be higher than 3 thousandths.

Therefore, there is no doubt that the conversion rate must be accurate to the thousandth.

This concept of breaking the old and creating the new seems to be very simple, and the reason is clear, but the implementation is far from the same. Those who don't know themselves well, but accuse you of not doing this or that.

The QR warehouse, CT warehouse, and black material warehouse that I built on my own used to use conversion rates accurate to the thousandth. After I was transferred to the first warehouse, the takeover was changed to integer conversion.

When I arrived at the first warehouse, there were more people here, and after several efforts, repeated demands, and ridicule, I was so far barely able to use the conversion rate accurate to the percentile - such a simple principle will be discounted in practice!

This is not my personal sorrow, the humanistic quality is too low, you insist on it, and people think you are greedy.

The simple truth is not in place, and it is sad![Diary on May 5, 1999]

Eliminate the wrong conversion rate measurement method and unify it into the correct one.

You don't have to look too carefully to observe that in our current (1999) property management class, 80% of the people have the right to measure the conversion rate, the personnel are mixed, there are all kinds of attitudes, the weighing instruments used are varied, and the measurement methods are even more strange - otherwise, how can there be the same 301 pipe 54 long specifications, and each kilogram will be different (50-46.31) PCS?

The difference is so bizarre, as long as you dig deep into the current conversion rate, such bizarre will reveal a lot.

[PM 07:49:09] often wonder who solves the sinking boat: among the various measurement methods of the current conversion rate, the most common mistake is this, weigh a KG and count how many are there, if it is not exactly enough for 1KG, use the nearest number, and take the whole number as the conversion rate. This is the concept of "how many kilograms" is at work. IN THIS WAY, THE CONVERSION RATE OF THE WISE 110050 PRODUCT NUMBER HAS CHANGED FROM 20.706PCS/KG TO 21PCS/KG.

The reason why it is said to be strange and strange, and there are also materials taken from the vicinity, so the dilapidated pound scale is used to weigh the conversion rate. THEY CALLED THE DRIVE SPIRAL OF CHONGSANGOU 8PCS/KG, BUT IN FACT IT WAS 11.868PCS/KG; RECENTLY, THE 434 EARS OF 110050 BEGAN TO BE SELF-MADE, AND THE CONVERSION RATE THEY MEASURED WAS 24PCS/KG, BUT THE SELF-MADE TYPE WEIGHED BY A STANDARDIZED ELECTRONIC SCALE WAS ONLY 20.64PCS/KG.

How far away is the difference, how big the interference is with such a crude number.

The conversion rate is full of errors and omissions, and it is difficult to say all [12:50 PM on May 8, 1999].

[PM 07:49:33] often wonder who will solve the sinking boat:4).

It is to determine the person and the scale, and use a certain method to measure.

A CALIBRATED PRECISION ELECTRONIC SCALE WITH A MAXIMUM WEIGHT OF 5 KG IS USED BY A DETERMINED PERSON.

Here's the right way:

Definition: The conversion rate is how many PCS is in 1KG, not how many PCS is 1KG.

Formula: There is only one correct method: conversion rate a = 1000g ÷ average unit weight M.

Measurement: The key to measuring the conversion rate is to measure the average unit weight. When sampling, after pressing the "quantity setting" button on the scale, the number jù displayed on the second display screen is the average unit weight. It is required that the sampling weight shall not be less than 200 grams, or the sampling quantity shall not be less than 100PCS, and at least one of these two standards must be met.

The way to quickly measure the average unit weight is to "set the quantity" in multiple times, rather than counting hundreds of PCS each time.

IF THE AVERAGE UNIT WEIGHT IS GRAMS/PCS, 1000G IS REMOVED, AND IF THE AVERAGE UNIT WEIGHT IS KG/PCS, 1KG IS REMOVED, AND THE CONVERSION RATE CAN BE OBTAINED.

Calculation: There are two ways to calculate the quantity counted, and you can choose one of them:

(number of pieces x net weight per piece + mantissa net weight) x conversion rate = quantity??

(number of pieces x net weight of each piece + net weight of mantissa number) ÷ average unit weight = quantity

The limit for material variances is 3/‰, and the average unit weight and conversion rate must be accurate to the thousandth, which is 3 decimal places.

The above is a record of previous years, and even now, it is still a bit of reference.

Thousands of calculations must have their roots. The conversion rate is very simple to think about, but why is it not easy to do?