Do you have the right inventory?
Do you ask yourself:
What should I stock? How Much, of each type should I stock? Should I store Finished Goods, Work in Process (WIP) or Raw Materials?
You could benefit from our Runner, Repeater, Stranger Event
These were the questions posed to a manufacturing company during a recent Runner, Repeater, Stranger Inventory Analysis engagement.
The objectives of this engagement:
- Have enough inventory to ship, consistently, to Customers.
- Improve transparency of data and accuracy of information
- Build more trust in the process and create a system they can all utilize.
- Increase profitability.
- More independence from factory orders
During the analysis tgg and the company:
- Reviewed 18 months of shipped volume.
- Corrected misidentified ‘strangers’ and modified the data.
- Computed RRS classifications and Kanban min/max classifications.
- Initiated initial stock order.
By the end of this four-week engagement the company had:
- 1+ week lead time (down from 4+ weeks)
- 45% Inventory reduction ($ and SKU’s)
- 75% Inventory accuracy (up from 25%)
- Lean overview training
- Increased refresh rates for both inventory & spare parts from every 24 hours to every hour
- Reviewed info inventory codes.
- Reviewed current ways to check inventory.
Graphs and Report Outs
The below graphs represent the data from the analysis. This side-by-side comparison for each type (Runner, Repeater, Stranger) shows weekly shipped orders on the left with the coefficient of variation on the right.
