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How to Stop Performing the Physical Inventory

Manufacturing Practices, Inc. created a unique approach to achieving Class “A” success in Inventory Control.  (Class “A” organizations have BOM Accuracy at or above 98%, Inventory Accuracy at or above 95%.  Some definitions include other criteria as well.) 

 

Our multiple day seminar is a classroom education process followed by hands on Inventory Control activities that create the foundation for a companywide Cycle Count Process.  Our pilot project identifies the possible pitfalls for success and shows how to implement a proper process for addressing the reasons for inventory errors! In total, students spend two days split between learning and doing. 

 

In the learning event, students are educated to:

  1. Understand why just fixing the count is not a solution
  2. Learn skills to identify errors that cause inventory inaccuracy
  3. Create timely error correction actions
  4. Development the skill sets as Specialist who “Know”
  5. how to count
  6. how to find and correct errors
  7. how to create the environment to help prevent the same future errors

In the training event, students learn to:

  1. Count
  2. Report
  3. Perform Root Cause Analysis
  4. Track Success/Failure

The types of results from our education and training process:

  1. Fewer Inventory identification errors occur in the future
  2. A focus of efforts o fix the reasons for the inventory errors
  3. Constant surveillance maintains inventory integrity
  4. Due to the consistency of the inventory accuracy, our clients have removed the painful yearly and/or quarterly Physical Inventory count activities. 
  5. Our clients, on average have added three days to the production calendar.  
  6. After this education and training, our clients are better equipped to perform the functions that add to their bottom line.
  7. Some clients have achieved a Return on Investment of more than 1000%.  Although this result is not typical, it shows the power of this easy to implement activity.
  8. Almost all of these clients have achieved inventory accuracy close to 95% within the first year and continue with that accuracy after several years.

If your organization is seeking assistance to select, implement, or gain better results with an existing ERP System, Manufacturing Practices, Inc. can help.  Call us at 770-772-6894, Skype:michael.a..roman, email: operations@manufacturingpractices.com.