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4.1.2.3
(10-24-2006)
Return Starts Analysis
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After determining the number of returns needed, the PSP Territory Manager
should determine the return category, priority, and activity codes needed
to deliver a balanced work plan. The number of returns started each month
must be monitored to maintain the optimal base inventory level. A tool that
will facilitate this effort is a Return Starts Analysis.
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A Return Starts Analysis analyzes the number of returns that have been
started during the fiscal year, by return priority and activity code. This
projects the number of returns that will need to be started for the remainder
of the fiscal year.
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An effective Return Starts Analysis generally includes the following
by priority and/or activity code:
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Planned returns. Calculation: (Planned DESYs X hours
in a staff year) /District or National Rate). Sources: Examination Plan, Table
37
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The average number of returns that need to be input
each month. Calculation: (Planned returns /12)
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The Turnover rate and Base Inventory. Calculate
the number of returns required to realize the Plan DESYs for each priority
or activity code. Calculation: ((Planned DESYs X hours in a staff year) /Plan
rate). Sources: Examination Plan, Table 37, Table 36.
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Then calculate the Turnover Rate for each priority
or activity code. The turnover rate is the number of times, in one year, that
a return will be closed from work in process. Calculation: (Total closures
from Status 12/ (Total Status 12 Ending Inventory/12)). Sources: Table 37,
Table 36.
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Note: Turnover months is the number of months it
will take for a return to be closed from work in process. Calculation: (12/
Turnover Rate).
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Calculate the base inventory required for each activity
code. Base inventory is the optimal level of work in process necessary to
accomplish the Plan. Calculation: (Plan returns/Turnover rate).
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Base inventory variance. The difference between
base inventory returns and current work in process returns. Calculation: (Base
Inventory—Current work in process Inventory). Sources: Table 37, Table
36, AIMS Open Case Database.
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Average return starts. Source: Table 37 or Table
36.
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Average starts needed. Calculation: (Planned returns/
12).
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Starts needed each remaining month to balance the
Plan. Calculation: ((Planned returns—Total return starts) /months remaining
in the fiscal year). Sources: Plan, Table 37 or Table 36.
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Now that the number of returns needed each remaining month to balance
the Plan have been determined, by return category and activity code, the PSP
Territory Manager must determine if there is sufficient inventory on hand.
If sufficient inventory is not on hand for each class/activity code, an order
may be necessary.
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Note that the Return Starts Analysis may indicate on an Area level that
returns are not needed. However, be sure to review the Return Needs Analysis
to determine if a particular POD requires inventory.
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