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Binghamton University 4/27/2010 Inventory Control
Background
Matt LazeskiBinghamton University Graduating Class of 2008Industrial Systems Engineering
PB Industries Vestal, NYContract Sheet Metal Fabricator
Industrial Engineer:Production Planning/SchedulingProcess and Product improvement, both manufacturing
process and business system processes.
My manufacturing background…
Been in sheet metal fabrication for about 8 years now
Started:Stamped Fittings Incorporated
Interned:Interned for Daimler Chrysler Commercial Bus
Interned at PB Industries
Full Time Employment:PB Industries
Inventory Control and Lean Manufacturing
What lean manufacturing is at PB Industries:
Systematically removing the seven forms of waste from the business to better serve the customer.
What is waste? Waste is anything in your business or manufacturing processes that does not directly add value to the customers product.
What does this have to do with inventory control?!?
First, what different inventories do manufacturing operations typically have?
Raw Materials, Work In Process (WIP), Finished Goods, Consumables
Second, The customer is buying the product, they are not directly buying raw materials, WIP, finished goods, or consumables.
To better serve the customer…
Does the customer care;
How much raw material you hold?
How many parts you build at one time?
How much of their finished product you hold at any one time?
What your material lead times are?
NO! They want their product, however much and whenever they want at A FAIR PRICE.
Inventory is Money
It costs to hold it, it costs to make it, it costs to make too much of it.
Inventory = Money
Too much Inventory = Wasted Inventory
Wasted Inventory = Wasted Money
(However yes some inventory is needed to operate at an acceptable level for the customer, minimizing that inventory is how you can better serve the customer)
Inventory Control Schemesand Inventory
Accuracy
Inventory Control Schemes develop a means to find that line between to much inventory and not enough to operate at an acceptable level.
Inventory Accuracy is often more important because you can set up all of these inventory controls but if its not accurate in the end, what's the point?
Why does inventory have to be accurate?
Accounting Purpose
Inventory Turns
Income Statement
Material Requirements Planning
Requirements for upcoming work
In the end it effects your ability to serve the customer.
How to ensure inventory accuracy?
Assumption 1: Nobody can count
Assumption 2: Memory is not a reliable inventory system
You need to build inventory accuracy into the system.
Through Audit (Cycle counting)
Structured Inventory Control Procedures
Inventory Control Schemes
Just don’t build it or buy it if you don’t need it!
‘Super Market’ Concept
Kanbans and Two Bin Systems
Electronic Signal Systems
