The Newsletter of Lean Manufacturing Strategy


New eBook

The Strategos Guide To Cycle Counting & Inventory Accuracy




Web Pages

Inventory Record Accuracy



Cycle Counting & Inventory Accuracy



Cycle Count Estimator

(Excel Template)

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

Lean Operations Seminar

Jakarta, Indonesia  -  6-7 November 2008  -  Quarterman Lee, Facilitator

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