Get our FREE Strategy & Transformation Templates. This is an exclusive promotion being run on LinkedIn.
  This is a partial preview. Full document is 15 slides. View large preview.
If you are logged in, your referral link [?] is automatically included below.
EMBED CODE (Copy and Paste)


BENEFITS OF DOCUMENT
  1. No back orders: a value to your customers.
  2. Customer Service knows that what is on the screen is in the warehouse: no worries throughout the company.
  3. Cost savings: eliminating the physical inventory.

DOCUMENT DESCRIPTION

What good is Inventory Management if the inventory is not 98-100% accurate daily, everyday? No good! Cycle Counting is important to every department in your company.

Inaccurate inventory leads to loss of sales, poor customer experience, and may indicate a more drastic issue of retail theft. Inventory Records Accuracy (IRA) is an area most business people take for granted. Daily Cycle Counting and Root Cause Analysis for a goal of 98-100% daily accuracy is critical to all departments in the company: Purchasing, Finance, Supply Chain, Distribution, Warehousing, Accounting, etc.

The on hand number on the computer screen has to be the same as the on hand number in the Warehouse, especially when shipping anything to the customer. The shipments have to be accurate. Back orders are frowned upon. Most companies assume they have an accurate inventory, and state, ?Oh, it?s about 90-95% accurate.? When you do a sample cycle count, you find the assumed number to be a lot less than 90-95% accurate.

You should know your Inventory Records Accuracy percent every single day.

Software people all talk about managing inventory with ERP and other IT tools. Sure these tools are helpful, but they are not effective unless the inventory accuracy is near 100% accurate.

What is formal, daily cycle counting?

The Warehouse is your Bank. There is MONEY in it. Not pallets, parts, items, bins or boxes, but the company?s MONEY. Protect it. Care for it. It has to be secure. There has to be genuine discipline and teamwork to meet the goal of 98-100% accuracy daily.

Goal: The on hand number in the warehouse equals (=) the on hand number in your ERPWMS or Computer software 98-100% of the time.

THERE MUST BE NO TRANSACTIONS OF ANY KIND TAKING PLACE WHEN CYCLE COUNTING:

Cycle count the Computer generated items provided daily by part number (with no on hand balance showing) from the ERP/Computer software system. It is imperative that you count the warehouse on hand amount first in all locations and then compare it to the ERP/Computer on hand amount. This is known as a ?blind count.? Knowing the ERP/Computer on hand balance while you are counting the warehouse on hand balance, will jeopardize the cycle count and influence your counts. You can cycle count by location daily until you do the entire warehouse, use the A, B, C inventory value classification of items or the 80/20 Pareto principal wherein 20 items out of a list of 100 are 80% of the total. Cycle count ONLY when warehouse, or any transaction, activity is frozen. Post today?s % accuracy on the cycle count board/inventory accuracy report to track progress to the 98-100% goal.

Both numbers should be the same. When you tell a customer you see 100 on hand in the computer, the warehouse on hand also must be 100 units.

Once the root cause is found (see some root causes in the (Power Point Presentation), a Standard Operating Procedure (SOP) written to avoid the root cause from happening again. See root cause examples on the daily cycle count sheet.

No computer system? No problem: IN-OUT-BALANCE SHEET: Once you are through cycle counting a part number in a bin location, use the ?in-out-balance? sheet (a check and balance system) to keep inventory accurate in that bin, as items are received or withdrawn (picked) and the balance in the bin location changes. When you cycle count that bin location again, the in-out-balance should be an accurate count of that bin, but you do a blind count anyway to check the balance on the in-out-balance sheet. Eventually, as the warehouse becomes completed with cycle counts, and inventory accuracy increases, as seen on the cycle count board, this balance on the in-out-balance sheet can be used when you cycle count.

COST SAVINGS: once you have a few months of 98-100% accuracy daily YOU CAN ELIMINATE THE LABOR INTENSIVE PHYSICAL INVENTORY which only causes more errors.

Got a question about the product? Email us at [email protected] or ask the author directly by using the form to the right. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Daily Cycle Counting for Inventory Records Accuracy PowerPoint document

 

Daily Cycle Counting for Inventory Records Accuracy

Sold by Charles M. Intrieri Consulting (this author has 6 documents)

$20.00

ALL FEES INCLUDED
Add to Cart
  

This business document is categorized under the function(s): Operations  

It applies to All Industries.

File Type: PowerPoint (pptx)

File Size: 466 KB

Number of Slides: 15

Purchase includes lifetime product updates. After your purchase, you will receive an email to download this document.

Initial upload date (first version): Oct 16, 2016
Most recent version published: Oct 16, 2016

Ask the Author a Question

Must be logged in Click here to log in

Report

SELECT CUSTOMERS

Flevy has provided quality business documents to businesses and organizations of all sizes across the world—in over 60 countries. Below is just a very small sample of our customer base.

VIEW BY


Are you a business professional?
Join Flevy and sell your business documents.

Just as the mobile apps market has helped software developers earn sustainable, passive income, we hope Flevy will do the same for business professionals, like yourself. There's no reason to let your IP collect dust when it can be making you perpetual income.


CUSTOMERS ALSO BOUGHT THESE DOCUMENTS

Service 4.0 Transformation
Listed under:  Operations  Strategy, Marketing, & Sales
View more from: LearnPPT   Top Flevy Author [?]
52-slide PowerPoint deck. Services companies are changing the way they offer and deliver services, driven by customer demands for a more customized, proactive, omnichannel, integrated, and data-driven service and enabled by emerging Digital Technologies. This is [read more]
$49.00

Add to Cart View Details

Business Case Development Framework
Listed under:  Operations  Strategy, Marketing, & Sales
View more from: LearnPPT   Top Flevy Author [?]
32-slide PowerPoint deck and supporting Excel workbook. The Business Case is an instrumental tool in both justifying a project (requiring a capital budgeting decision), as well as measuring the project's success. The Business Case model typically takes the form of an Excel spreadsheet [read more]
$49.00

Add to Cart View Details

Five Stages of Business Growth
Listed under:  Operations  Strategy, Marketing, & Sales
View more from: LearnPPT   Top Flevy Author [?]
25-slide PowerPoint deck. This document introduces a framework for entrepreneurs to use when building and navigating their business from a nascent, startup state to an enterprise with a global footprint. This framework is based on the fact that all businesses [read more]
$39.00

Add to Cart View Details

Digital Transformation: Blockchain Technology
Listed under:  Information Technology  Operations
View more from: LearnPPT   Top Flevy Author [?]
53-slide PowerPoint deck. Blockchain Technology is an emerging database technology that has gained widespread appeal across many industries, mostly driven by the rise of cryptocurrencies--most notably Bitcoin. It provides numerous process benefits, including [read more]
$59.00

Add to Cart View Details

A3 Problem Solving Process
Listed under:  Operations  Organization, Change, & HR
View more from: Operational Excellence Consulting LLC   Top Flevy Author [?]
181-slide PowerPoint deck and supporting Excel workbook. The objective of this training module is to introduce you to the A3 Problem Solving Process and provide you and your organization with an effective thought process and approach, as well as the basic tools to identify the underlying root [read more]
$44.50

Add to Cart View Details

Audit Report Model and Sample
Listed under:  Information Technology  Operations
View more from: John Kyriazoglou
26-page Word document. This document "Audit Report: Model and Sample" contains a model of an audit report and a real sample from an IT Audit assignment (data of client not disclosed for privacy and confidentiality issues). This has been used [read more]
$29.00

Add to Cart View Details

Business Excellence Frameworks
Listed under:  Operations  Strategy, Marketing, & Sales
View more from: Operational Excellence Consulting   Top Flevy Author [?]
448-slide PowerPoint deck. This presentation is a collection of PowerPoint diagrams and templates used to convey 100 different business excellence frameworks comprising key strategy, marketing, sales, finance, operations, innovation, IT, technology management, [read more]
$99.00

Add to Cart View Details

PDCA Problem Solving Technique & Tools
Listed under:  Operations  Organization, Change, & HR
View more from: Operational Excellence Consulting   Top Flevy Author [?]
194-slide PowerPoint deck. In this training presentation, you will be able to teach employees on the structured Plan-Do-Check-Act (PDCA) approach to problem solving. Many world class companies such as Toyota uses the PDCA problem solving process for the [read more]
$49.00

Add to Cart View Details

Lean - Rapid Improvement Event (RIE)
Listed under:  Operations  Organization, Change, & HR
View more from: Nitin Joshi
38-slide PowerPoint deck. A Rapid Improvement Event is also known as a Kaizen Event. In practice a Rapid Improvement Event generally spans from 1 to 5 days and involves key process participants focusing on solving a narrowly scoped process improvement opportunity. [read more]
$24.00

Add to Cart View Details

The 8D Problem Solving Process
Listed under:  Operations  Organization, Change, & HR
View more from: Operational Excellence Consulting LLC   Top Flevy Author [?]
207-slide PowerPoint deck and supporting ZIP. The 8D Problem Solving Process has become a standard in many industries as problem solving or improvement process, as internal Corrective Action Request (CAR) Process or as Supplier Corrective Action Request (SCAR) [read more]
$49.50

Add to Cart View Details

What project are you working on?
Consumer Behavior?   Bain Presentations?   Growth-Share Matrix?   Or something else.
Have a look at our holistic Business Toolkits. We have over 250+ toolkits covering a wide range of business topics.