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Inventory Accuracy in 60 Days! ©Copyright 1990 and 1996
By e J. Miller, CFPIM, PROACTION, Oak Park, CA, USA
i. INTRODUCTION
Despite great advances in manufacturing technology and management science,
thousands anizations still don’t have a handle on basic inventory record
accuracy. panies don’t even measure it properly, or at all, and lack
corrective action programs to improve it. This paper offers an approach that has
proven essful a number of times, panies were quite serious about
making improvements. Not only can it be plished, but it can likely be done
within 60 days per area, if properly managed. The hardest part is selling people
on the need to improve and then keeping them motivated.
cost of such a program? Very likely free, when one considers the
benefits gained, which usually far exceed the costs. Inventory accuracy benefits
help: provide excellent customer service, determine purchasing and
manufacturing priorities, reduce operating costs, and provide accurate data for
financial records.
The author also addresses the gap in contemporary literature in the area of
accuracy program features for repetitive, JIT, cellular, process and project-
oriented environments.
Do you have inventory accuracy problems? Typical symptoms:
• Lots of inventory errors
• Surprise backorders, unplanned shortages, "lost material"
• Nobody believes the records-- numerous calls to "check" on availability
• Air freight bill exceeds the national debt
• Nasty financial reporting "surprises"
• Lack of consensus on importance of accuracy
• Lack of consensus on how to measure it
• Inability to reconcile inventories, cycle counts
• Error causes largely unknown
• Weak/pany tradition of data accuracy
• New systems/software implementation causing more confusion
Solution mendations are presented as follows . . .