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inventory accuracy

Tips inventory accuracy

It is a piece of paper was originally written by George Miller, the founder of PROACTION. It has been modified and updated by Paul Deis, PROACTION CEO.

This article is also available on our website: PROACTION - generate best practices

Does your company to increase the accuracy of inventory?

writings he often focused on accuracyimprovement storage techniques such as cyclic inventory. Although this is a very important position in the stocks or professional thetoolkit materials, inventory Cyclic onlymainly measurement and diagnostic tools. Think of it as SPC (statistical ProcessControl) for inventory accuracy. Youprobably does not intend to counter the cycle route to inventory accuracy, withoutalso making larger improvements in material handling, transaction control, the process of reporting and information feedback. For manycompanies, using the cycle count adjustments to correct inventory record errors islike attempt to bail the ocean with a spoon,

Because mistakes can be made farfaster than they can be economically repaired.

So what should I do?

Aneffective inventory accuracy program should consist of the following elements:

· Stocks accuracy criteria (metrics) - this item / part identification number, quantity and unit of measure, location, and accounting timeliness. Somecompanies also measure other related data such as customer number / order, list the configuration / revision, lot, serial number, grade and date of expiry. Visited company, claiming that they have 95.98 or 99 +% accuracy record, that fast mid-double digits after weapply without compromising our criteria objectively. Sometimes companies have invalidcriteria, sometimes alone, sometimes their deceivethem employees, sometimes unconsciously or subconsciously.

· stream anddocument clearly defined materials, inspection and tracking of identified points. These should be marked in the store beclearly

and workers should be thoroughlyindoctrinated. A simple block diagram of the system is expected excellenteducational tool. It should include the material, document and transaction routing "drop points," times of movement, record, batch control, and inspection reports.

· Suitable premises and equipment, space, magazine andmaterial service systems and other devices. The maintenance of good practice are a must. Itmight you will need to be physically protected by means of stock fences, gates andlocks, if the floor is not discipline can be achieved otherwise. Make sure there is room foreverything materials, equipment, documents, and of course people. Use marking signsand to the obvious.

formaterial

· effective policies and procedures for handling, storage, identification, packaging, labeling, datacollection, Counting and transactions. Use the tools structurework and good form correctly.

Training the / certification / evaluation program for all people who support or inventory tracking,

or who are in toinfluence position, as well as that works. Consideration should be given to the magazine PROACTION AccuracySeminar. APICS The use of materials.

· ongoing assessment and diagnostic program, such as cyclic inventory. Such programsmay served in one of several organizations within the company, aslong as the manager is responsible to the needs of vulnerable stocks accuracyand earnestly devote the effort needed for the program. Who writes, webelieve, which is third party oversight, by auditgroup internal or external, or consultant, you need to run the program on track.

· effective inventory transactions Cut offcontrol and reconciliation procedures, including accounting for alltransaction documents. Do not dare even THINK about the real cycle countinguntil gain control over this, although it is recommended that you start small earlywith control group, the debugging process and to begin diagnosis błędów.Rozwiń cycle count larger program only after you know

What you doing.

· transaction monitoring system to provide posttransactions and inventories for all departments that require, preferably through a computer system on-line. Bar code and other data collection systems are desirable, ifcost effective, but it does not mean they are required to run accurate. Visual control systems such as Kanban, 2-bin, pallet squares, etc., can sometimes reduce or even eliminate the need for Foremost transactions and automated systems in proper circumstances.

Yes, you may be thinking, this is all pretty obvious, "Why do not we all doingsomething like this successfully? It'sactually much harder than it looks," Why:

° adjustable: "Not everyone agrees with the importance of accuracy thatinventory. I say: Are you satisfied with the alternative? "It requires a high degree of consensus on the approach, responsibilitiesand "property." In extreme cases, a company executive leadership may need a step to change the culture andoversee

required changes.

· What is needed is discipline, daily, yearafter year. This is not a task to manage timecleanup can declare victory and just go home. It requires that someone is at least parttime "Pulaski accuracy," reducing the workload targeted and permanently activated.

Implement ideas

Configuring:

Problem Implementing Directive for the inventoryaccuracy and accountability. Formally announce the improvement and maintenanceprogram. Establish management authority and responsibility for dataaccuracy / integrity. Create charts
deal flow and object portowego.Pociąg everyone involved.
Establishment and use of numbers (make sure BOMstructured correctly) Write
locations holding stocks of inventory and training materials transactionprocedures and train all those involved. Publish
data integrity policies and procedures theseconcepts work and training company.
Review the adequacy of equipment and storage equipmentto i obsługi materiału. Marka potrzebnepoprawa wspieranie podejścia materialcontrol uzgodnione "przestrzeń, stojaki, półki, pojemników, przenośników, ogrodzenia, bramy, widelec dźwigów, drabiny, skale, itp.
Opracowanie wyników działania. Publikowanie themregularly, na papierze, BBS, przytrzymaj klawisz ludzi przed zarządem, z appropriaterewards kary popełnione, odzwierciedlone w wydajności opinie, odszkodowania, praise, itp. Narzędzia, takie jak cyclecounting/statystycznego procesu kontroli.
Ustanowienie obiektywnych programu inspekcji.

Zalecenia operacyjne

Użyj PROACTION zalecane danych dokładności criteriaand cyklu procedur Keep counting
flow near the wall charts - refer to themwhen
needed to maintain control as a practical
Locator Use the appropriate media "racks, shelves, bins, pallets
Make judicious use of automation, where it is practicable" conveyors, automated storage and retrieval systems (AS / RS), automatic datacollection such as bar coding, automated counting / weighing scales, automaticbaggers, pallet wrappers, etc. Standard sizes
Use container weights, quantities. Mark standard weights and quantities in the containers. Use permitted
sealed cartons These recounts are not closed boxes usuallynecessary
Use of visual inspection methods Kanban squares, calibrated, clear plastic containers, etc.
Accounting transactions in real time is a practical
Postpone frequently used items at mostaccessible. Keep out of the use, where practical and controlled. Excellent
prejudice the practice.
careful with descriptions, unit of measurement.
Purge outdated, conflicting, unnecessary materials. Use good practice
labeling.
label, track, monitor shelf-life items.
board material easier access and counting.

index tracking approach

Perpetual computer or manual transactions
discrete control issues
"feedback" control issues
"2-bin, min-max or kanban control visuallydriven
" 2-bin, min-max or kanban control , perpetualinventory
powered working party
Control Out of control (not recommended)

Kontroligrupy methods of verification (Start with this)
Periodic inventory audits
Repeat
location
review transactions

Stocks RWT

great prejudice the maintenance of the Transaction Report as
Term as possible including scrap, adjustments, exceptions
Use a hook or train numbers on the production lines
Use standard container sizes, weights. Markweights and in standard containers.
were labeled standard containers, racks Minimize
PWT, remove all hours of material not needed forX
Mark quantities in closed containers
Assign employees the responsibility for parts monitoringcertain
Use feeder cells, Create as needed and keepparts on the line where practical

ABOUT THE AUTHORS

George J. Miller, CFPIM, is the founder PROACTION. Prior to the sale of the company to Paul Deis, George worked with dozens of companies in assignments involving productivity, quality and service improvement, business systems, change management, acquisitions, divestitures, expert witness and others. Before