A stock take can be an administrative nightmare or they can be efficient and effective. It all depends on how they are set up and organized. There are three key steps for an efficient stock take and they must each be given an appropriate degree of
Some Cold, Hard Facts About Stock Takes
One of the key functions that must be carried out with all inventory management is a periodic reconciliation between actual stock holdings and the holdings according to the accounting system. This reconciliation is a requirement of financial management and accounting standards and the primary intent is
More Truth About Inventory Management Theory
In a previous post we demonstrated that the classic ‘saw tooth’ diagram associated with inventory management and control is sometimes not at all representative of reality for engineering materials and spare parts. In this post, I am going to expand on this to show just how much it can cost
The Truth About Inventory Management Theory
Subject Area: Spare Parts Inventory Management Theory
The Spare Parts Storeroom – More Than Just Transactions
Many people view the spare parts storeroom as being a purely transactional environment. That the function of the storeroom is to administer the transactions associated with receiving and issuing materials and spare parts. But if we really want the spare parts to be maintained so that they will perform as
The Stock Out Metric
The stock out metric is one of the most popular ways to monitor spare parts inventory. A ‘stock out’ occurs when there is demand for an inventory item but there is no stock available. The Stock Out metric is a curious measure and as with all metrics one needs to
Managing Slow Moving Inventory
Is Slow Moving Inventory Really An Easy Target for Inventory Reduction? Inventory that is slow moving is often seen as an easy target for people undertaking an inventory review. Rather than undertake a structured review process (such as the Inventory Cash Release Process) many people will target slow moving
Inventory Management Formula – Knowing is the Easy Part!
In Fact, Just Knowing Inventory Management Formulas is Not Enough Does it really matter if you do or do not understand all the inventory management formula? Does it matter if you know or don’t know how to calculate the Reorder Point or the Reorder Quantity for individual SKUs? Yes,
The Right Spare Parts Metric – Accuracy Vs Precision
Performance measurement with the right metric is the cornerstone of all improvements efforts. If you don’t or can’t measure where you are now versus where you were before, then how do you know if you have improved? Just as importantly, however, is knowing if your measure actually reflects your current
What is Your Sphere of Influence?
Have you ever attended a sporting event or theatrical performance? Most of us have. At some time have you been sitting there when someone else starts applauding or gets up to give a standing ovation? Ever noticed what happens when people do this? The people around them start to join