Smart Inventory Solutions / Edition 2 available in Paperback, eBook
![Smart Inventory Solutions / Edition 2](http://vs-images.bn-web.com/static/redesign/srcs/images/grey-box.png?v11.11.4)
- ISBN-10:
- 0831134011
- ISBN-13:
- 9780831134013
- Pub. Date:
- 03/15/2010
- Publisher:
- Industrial Press, Inc.
- ISBN-10:
- 0831134011
- ISBN-13:
- 9780831134013
- Pub. Date:
- 03/15/2010
- Publisher:
- Industrial Press, Inc.
![Smart Inventory Solutions / Edition 2](http://vs-images.bn-web.com/static/redesign/srcs/images/grey-box.png?v11.11.4)
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Overview
This new edition will help you get the right parts, in the right place, at the right time, for the right reason. Fully revised, it provides specific coverage of the issues faced in, and requirements for, managing engineering materials and spare parts and what to do to improve your results. It includes 29 exclusive examples and real life case studies to demonstrate the application of the concepts and ideas so that you will easy and quickly understand how to implement them. What's more it will show you: What to do to truly optimize your inventory holdings, Why inventory levels are almost always too high, How to identifying the factors that have greatest impact on your inventory levels, When to apply the 7 Actions for Inventory Reduction, Where to focus your efforts for greatest effect, and Who to involve in taking action. The concepts, ideas, tools, and processes in this book have helped many companies achieve and sustain results that other inventory tools and approaches just could not match. And it is sure to help you achieve true inventory optimization as well!
Features
The second edition includes…
- A new chapter on The Mechanics of Inventory Management, a pragmatic review of the management of inventory including… Introducing the Materials and Inventory Management Cycle, Comparing theoretical and actual inventory outcomes, Discussion on normal and Poisson distribution models, How to determine the re order point, How to determine the re order quantity, and Commentary on Monte Carlo simulation.
- An expanded chapter on the financial impact of inventory, including a discussion of the key reports that need to be understood.
- Chapters on the influence of policies, procedures, and people.
- Additional discussion on issues faced and how to address them.
- An expansion of the central process discussed in the first edition to a more comprehensive review process…Inventory Process™ Optimization.
- An expanded section on executing an inventory review program.
- A closing 'where to from here' chapter.
- 57 figures and diagrams - 30 of them new and the others all revised and updated and six new tables (with 8 in total).
- Eight new checklists - specifically included as a new tool for the reader and is the result of direct reader requests.
- An expanded glossary.
Product Details
ISBN-13: | 9780831134013 |
---|---|
Publisher: | Industrial Press, Inc. |
Publication date: | 03/15/2010 |
Edition description: | Second Edition |
Pages: | 275 |
Product dimensions: | 6.20(w) x 9.00(h) x 0.90(d) |
Age Range: | 18 Years |
About the Author
Based on his experience, Phillip has authored a number of management books including A New Strategy for Continuous Improvement and Smart Inventory Solutions. Over the course of his career Phillip has worked in at least a dozen countries and across most industries. He presents training courses for APICS, is a member of the Australian Institute of Company Directors and The National Speaker’s Association of Australia.
Selected operational improvement achievements include:
- As a manager, taking an underperforming manufacturer to be the profit leader in its group of companies
- Assisting a client to achieve more than 20% in operational cost reduction
- Assisting other clients to achieve tens of millions of dollars of operational improvements
- Assisting a client to achieve a 42% reduction in inventory
- Assisting other clients to release millions of dollars in cash from excess inventory
Most recently, Phillip has donated his time as a Non Executive Director for Yooralla, one of Australia’s leading disability service providers. In addition to his operations improvement consulting work, Phillip is also available for corporate speaking and training.
Table of Contents
Chapter 1 Introduction to Smart Inventory Solutions 1
Achieving True Inventory Optimization 1
Inventory: The Forgotten Investment 2
Inventory Process Optimization™ 4
Management, Reduction, or Optimization? 4
Generating Lasting Results 7
Chapter 2 The Mechanics of Inventory Management 9
Simple not Simplistic 9
Materials or Inventory? 10
Relevant Terms and Expressions 10
What is the Purpose of Having Inventory? 12
Why Spares and Indirect Inventory Is Different 13
An Introduction to the Materials & Inventory Management Cycle 15
Comparison of Theoretical and Actual Inventory Management and Control 16
Determining the Re-Order Point (ROP) 19
Determining the Re-Order Quantity (ROQ) 26
A Word on Monte Carlo Simulation 29
Do You Hold Too Much Inventory? Check Your Stock Turn Ratio 29
Chapter 3 The Financial Impact of Inventory 33
Don't Overcompensate 33
The Inventory Management Tension 34
Cash Is King 35
A Simple Model of Business Economics 35
The Four Financial Reports that You Absolutely Must Understand 40
How Much Cash Can You Generate? 43
Chapter 4 People and Processes 49
The People Factor 49
Adopting a Zero Inventory Mindset 54
The Influence of Process 55
Systems Thinking 56
The MIM Cycle in Detail 58
Chapter 5 Policies & Procedures 63
When is Critical Really Critical? 63
The Spares Stocking Policy 68
Chapter 6 Issues, Myths and a Few Home Truths 77
Why Inventory Reduction Often Fails 77
Cracking the Inventory Code 78
5 Myths of Inventory Reduction 82
Why You Might Hold More Inventory Than You Really Need 89
Chapter 7 The Spare Parts Storeroom 97
The Central Hub 97
Squirrel Stores & Why You Would Be Nuts to Keep Them 98
MRO and Engineering Spares: Lean, Mean or Somewhere In Between? 106
Is Your Storeroom a Pit Stop or a Supermarket? 114
Chapter 8 The 7 Actions for Inventory Reduction 117
The Bath Tub Principle 117
Hypothesis Driven Analysis 118
Double Loop Learning 119
Action #1 Have Someone Else Hold It and/or Pay For It 121
Action #2 Sell Excess and Obsolete Stock 127
Action #3 Eliminate Duplication 132
Action #4 Change the Factors That Drive Safety Stock 136
Action #5 Reduce Reorder Stock 141
Action #6 More Closely Match Delivery with Usage 145
Action #7 Reduce the Value of Items Held 149
Chapter 9 Inventory Process Optimization™ 153
Beware Implicit Assumptions 153
The Inventory Process Optimization™ Method 155
Stream 1 The Individual Parts Review 158
The Inventory Cash Release® Process
Getting the Focus Right
When to Apply Which Action
The Step-By-Step Process
Example Application of the ICR® Process
Reviewing the Long Tail
Stream 2 The Management Process Review 182
Chapter 10 Execution: Taking Action to Achieve Results 183
Selecting Your Inventory Review Champion 185
The Role of Your Inventory Review Champion 187
Who to Involve in an Inventory Review Program 188
The Three Stages of an Inventory Process Optimization™ Program 189
Measuring Your Progress 202
Integrating New Inventory Items 203
Integrating Inventory Process Optimization™ with Inventory Management 205
Chapter 11 Case Studies 209
Case Study 1 Establishing a Materials and Inventory Management System 211
Case Study 2 Applying the Inventory Process Optimization™ Method 217
Chapter 12 Where To From Here? 225
Bibliography 231
Appendix A Materials and Inventory Management Glossary 233
Appendix B Data Collection Questions 251
Index 255