Do you have inventory challenges?

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. 

Define your Problem Statement.

The first step towards breaking your organizational log jams is identifying and verbalizing the challenge you're facing. What are you trying to solve? This simple Problem Statement exercise can have profound implications for your team. It helps you define the issue and gives TGG some sense of where the soft spots could be in your Order to Cash process. We invite you to take a few moments to fill out this form. A TGG consultant will contact you shortly to discuss your Problem Statement and provide some insight on how we may be able to help.

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