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i. INTRODUCTION
Despite great advances in manufacturing technology and management science,
thousands of organizations still don’t have a handle on basic inventory record
accuracy. Many companies 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 successful a number of times, when companies were quite serious about
making improvements. Not only can it be accomplished, 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.
The net 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 projectoriented
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/no company tradition of data accuracy
• New systems/software implementation causing more confusion
Solution recommendations are presented as follows . . .
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