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The Strategos Guide To Cycle Counting & Inventory Accuracy

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Cycle Counting & Inventory Accuracy

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S t r a t e g o s

L  e  a  n     B  r  i  e  f  i  n  g

The Newsletter of Lean Manufacturing Strategy

8 October 2008                www.strategosinc.com

The Glass Ceiling of Cycle Counting

A Case Study

I recently spoke with a company that was having difficulty with their inventory accuracy. Their situation, unfortunately, was fairly common. It illustrates an apparent paradox in cycle counting: The better the accuracy, the less effective the counts.

Their finance department had instigated cycle counting with a goal of 92% accuracy. They intended to eliminate the annual physical inventory when that accuracy was reached.

Their accuracy had risen quickly from the original 60% range but hit a sort of Glass Ceiling at 86%. Accuracy had been stuck here for six months and frustration was growing. The situation is detailed as a new case study in our cycle counting pages.

These pages and my book, The Strategos Guide to Cycle Counting & Inventory Accuracy, explain what was happening and what to do about it. The book is available as an eBook (personal use) and a Training Edition for your own  workshops.

If you are considering cycle counting, check out our web pages. Even experienced people may find some new and interesting perspectives. We also offer a free estimating tool that simulates a cycle counting system. This tool allows you to explore different scenarios such as varying cycle counts, the effects of ABC stratification and error rates.

I hope you find the articles helpful and worth exploring.

Best Regards,

Quarterman Lee