Lean Six Sigma, and Inventory Management

This stems from the fact that when an order is received, the goods can be shipped immediately. But this scenario often leads to the accumulation of stocks, unless revenues are generated good - or obsolete inventory.

There are projects to improve this situation, but often give short term results at the end. The best solution is the implementation of Lean tools to reduce excess inventory and obsolete.

Data Collection Tools

Lean Six Sigma can be very effective in reducinghuge losses incurred as a result of too much and obsolete inventory.

Analyze the root causes

The first step is the analysis of excess and obsolete inventory that take more than one organization. The DMAIC methodology can be very useful in reducing the inventory improvement in the scenario.

Often the root cause of this result of long lead times, poor prognosis and quality issues. Further analysis shows that there are reasons that are linked to the cableproblems.

For example, the delivery of large size are caused by much larger. Although the order cycle time by 30 days if the lot size for the purchase is 90 days, then this leads to a huge amount of inventory. Although this is not the only reason can be an important reason along with the cause of a complicated process.

There may be other reasons that cause the stale inventory. If the lead time is great and it happens to be in need of some revision, then by the time theCamping offers the utility of the inventory must be reduced.

For example, a pharmaceutical company when times are large, the title could be up to date on which the product is expired or not very far from doing.

In such a situation, the customer may reject the product.

Deal with weak demand, supply and Forecasting

Another cause may be due to poor management of supply and demand process. If it is bad weather, or inaccuracy of the data onOn the demand side and on-sales on the outstanding team of sales, stocks can be overwhelming.

Rework caused by defects is another important factor that leads to obsolete inventory and increased throughput times. Lean Six Sigma tools can be used with extreme caution in dealing with this situation.

Allow the phases of DMAIC to define the objectives of the project, the data collection phase of the plan of action, and performing a physical count during the measurement.This helps to understand the value of the best title of the book value. Flow analysis of the value in the analysis phase helps us understand how the input variables affecting the stock.

It can be the basis for an inventory model. Other areas are also identified, in which the inventory made in vain. Lean tools such as 5S can be very helpful in fixing this situation. Further improvements are also identified.

The phase control can be an ongoing process,capable of sustainable improvements.

Lean can be very helpful in addressing the problems of excess inventory and obsolete tools and techniques to identify the causes and the design of lean solutions to optimize the process.

Lean Six Sigma, and Inventory Management