Your company to improve the accuracy of inventory? Often work better focus precision inventory techniques, such as the cycle count. While this is a very important element in the toolbox of materials or inventory, cycle counting first professional one measure and diagnostic tool. Think about how SPC (Statistical Process Control), specifically the inventory. Probably not the way for the accuracy of the inventory cycle counts, without majorImprovements in materials management, transaction control, reporting and feedback process. For many companies, with Cycle Count inventory and adjustments to correct errors is like trying to save the ocean with a spoon so that mistakes can be much faster than it can be a good remedy.
So what to do?
An effective program of inventory must be accurate from the following:
• Inventory Accuracy measurements(Metric) – including item / part identification number, quantity and unit of quantity, location and date of publication. Some companies also measure other data such as customer / contract number, configuration, point of control, quantity, serial number, quality and maturity. I say business, 95, 98 or 99 +% of the accounts has fallen rapidly since the mid-double digit when we visited our uncompromising objective criteria. Sometimes companies have valid criteriaSometimes deceive, their employees, who sometimes make mistakes, sometimes unknowingly or unintentionally.
• A clearly defined material and document flow, control and tracking identification numbers. These must be clearly be indoctrinated into the shop and the staff well. A simple flow diagram of the system you want is an excellent educational tool. There should also be material, documents and transaction data routing, "drop point", delivery time,Registration, batch testing, reporting and auditing.
• adequate facilities, space, storage and handling systems and other devices. Good housekeeping practices are a must. You may need to physically secure directory with fences, gates and locks, if the plan can not be obtained otherwise discipline. Make sure there is a place for everything, materials, equipment, documents, and of course humans. The use of signs and markings in thisobvious.
• policies and procedures for material handling, storage, labeling, packaging, labeling, data collection, counting of votes and transactions. Use good forms and tools for the structural work.
• A statement / / Certification program evaluation for all people, length or inventory, or is able to influence the trace of how it works. Consider ProAction's seminar Inventory Accuracy. Materials APIC.
• A continuousAssessment and Diagnostic Program, as the cycle count. These programs can be managed in one of several organizations within the company until the practitioner is sensitive to the needs of inventory accuracy and effort devoted to the program seriously. That said, we believe that the 3 Party as a control group of internal or external audit or an outside consultant is needed to keep the program on track.
• stocktaking exercise effectiveCut-off control and reconciliation for all the accounting records of transactions. Dare not even counting the actual cycle to obtain control over them, even if it is advisable to start early with a small control group to debug and start the process of solving problems. Extended to a wider Cycle Count program when you know what you're doing.
• Transaction monitoring operations and to provide the status of inventory for allDepartments need it, preferably through an online computer system. Bar-code and other automatic data collection systems are desirable, if affordable, but not necessarily to run a particular system. Visual control systems such as Kanban bin, 2 -, can pallets, etc., sometimes be reduced or even the need for most transactions and automated systems, remove the substantiated cases.
So you can imagine, all this is quite simple – because not allto do something similar with success? Indeed, it is much harder than it looks, because:
• Recommendation: Not everyone agrees that the accuracy of inventory is important. I say: Are you satisfied with the alternative? "It requires a high degree of consensus on an approach, responsibility and ownership. In extreme cases, the CEO of the company is forced to lead, to change the culture and monitoring of the changes necessary measures.
• The discipline is needed, Dayafter day, year after year. This is not a one-time cleaning that management must declare victory, and could only go home. It must be someone to keep at least part of the time "accuracy Czar," the effort focused and constantly active.
Implementation Ideas
Installer:
• issuing Executive Directive on the need for accuracy and reliability of inventory. Formally announced the improvement and maintenance program. Construction ManagementAuthority and responsibility for the accuracy of the data integrity.
• Creation of the transaction and the construction of the flow chart. Trains for everyone involved.
• Fix and use the part numbers (be sure to bill properly structured) sites.
• Write to keep an inventory and transaction management, and teaching materials for education for all involved.
• Publish a policy of integrity and work of these concepts in business processes and training.
• Reviewing the adequacy ofFacilities and equipment to store and process the material. Make the necessary improvements in the control material, agree – the space, shelves, containers, conveyors, fences, gates, lift support, stairs, stairs, etc.
• Development of performance measures. Regularly published in the paper, bulletin board, to hold people responsible, together with their awards are a criminal, communications personnel, pay, praise, etc. Using tools such as cycle counting expressions / StatisticsControl process.
• Establish a program audit objective.
Operational Recommendations
• Use ProAction recommends that the accuracy of the data and criteria, procedures for counting the loop
• Keep charts on the walls nearby refer to them, if necessary
• keep the locator control in a practical
• appropriate use storage racks, shelving, containers, pallets
• Make judicious use of automation wherever possible – the transportation, storage, automatedand retrieval systems (AS / RS), automated collection of data such as barcodes, automatic counting / weight, automatic knives, trucks, packaging, etc.
• Use standard container sizes, weights and quantities. Mark weight and volume of standard containers.
• Use the right boxes sealed not aware of sealed boxes generally require
• control methods use Visual Kanban squares, calibrated transparent plastic containers, etc.
• Post transactionsReal-time practice
• Place frequently used items more available to the city. Keep the point of use, where possible and checked.
• Practice good budget.
• Register descriptions, unit of measure depth.
• Eliminate obsolete different materials.
• Use a good labeling practice.
• Label to continue to monitor voice shelf.
• Array material to facilitate access and counting.
Inventory TrackingApproaches
• computer perpetual or manual processes
• Discrete control issues
• "wake" control issues
• "2-bin, Kanban or min-max control, visually guided
• "2-bin, Kanban or min-max control, PIM-driven
• Jobs Control abundance
• Out of Control (not recommended)
Methods
• control group (beginning with this one)
• RegularInventories
• Cycle Counting
• spot
• Transaction review
WIP Inventory
• Maintain good housekeeping
• report transactions as quickly as possible, scrap, adjustments, exemptions
• Use hooks or numbers of stations on production lines
• Use standard container sizes, weights. Mark weight and volume of standard containers.
• Have standard label shelves
• MinimizeWIP, remove all material not necessary for X hours
• Mark containers volumes
• Assign the responsibility of staff for testing certain elements
• Use the power lines, the cells that are needed to make and keep parts of the network, if feasible
This article is also available on our website: ProAction – Generating Best Practices. E 'wrote in an extract from a document, as originally proposed by George Miller, the founder of ProAction. It has been amended and updated by Paul DeisProAction CEO.