Managing inventory for cost reduction:
Gespeichert in:
1. Verfasser: | |
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Format: | Buch |
Sprache: | Undetermined |
Veröffentlicht: |
Englewood Cliffs, NJ
Prentice Hall
1992
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Online-Zugang: | Inhaltsverzeichnis |
Beschreibung: | XX, 503 S. |
ISBN: | 0135047889 |
Internformat
MARC
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100 | 1 | |a Kobert, Norman |e Verfasser |4 aut | |
245 | 1 | 0 | |a Managing inventory for cost reduction |c Norman Kobert |
264 | 1 | |a Englewood Cliffs, NJ |b Prentice Hall |c 1992 | |
300 | |a XX, 503 S. | ||
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337 | |b n |2 rdamedia | ||
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Datensatz im Suchindex
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adam_text | Contents 1
HOW TO MANAGE INVENTORY TO MEET YOUR
COMPANY S COST REDUCTION GOALS, 1
How to Translate Corporate Goals into Realistic Inventory Management
Strategies, 3
Seven Steps to a Realistic Inventory Management Strategy, 4
Case Study: How a Warehouse Manager Learned Not to Base His
Cost Reduction on Erroneous Calculations, 5
Case Study: How a Purchasing Manager Reconsidered the True Cost
of Ordering, 6
How to Calculate Actual Cost Savings By Installing a Just-in-Time /
Warehouse, 7
Five Ways to Calculate Opportunities for Reducing Inventory Costs, 8
How to Monitor Inventory Cost Reductions: Three Report Formats, 8
How Inventory Reports Can Help Reduce Inventory Costs, 9
Six Practical Strategies for Reducing Inventory Costs, 10
Case Study: How Reducing Inventory Size Caused More Problems
Than it Solved, 12
Using Training With Case Studies to Aid Implementation of Inventory Cost
Reduction Programs, 14
45 Quick-and-Dirty Ways to Reduce Inventory Costs, 15
Inventory Cost Reduction Opportunities Are Out There Right Now, 19
xi
xii Contents
2
CHOOSING THE OPTIMUM INVENTORY LEVEL, 20
How to Isolate the Factors That Build Inventory, 21
How to Locate Inventory Cost Improvement Opportunities, 22
Who Establishes Inventory Levels and How? 23
How to Calculate the Optimum Inventory Level, 24
How to Establish Safety Stock Levels, 25
Case Study: How a Purchasing Manager Learned That Safety Stock
Levels Can t Be Calculated With Across-the-Board
Percentages, 27
How to Calculate Safety Stocks on a Line Item Basis, 28
How to Use sku-Specific Data to Determine Optimum Stocks, 29
How to Ensure That Your Optimum Levels are Attainable, 30
Case Study: How an Inventory Manager Negotiated an Achievable
Stocking Level Improvement, 30
Case Study: How a Company Targeted Specific Inventory Cost
Reductions by Departments and Activities, 32
How to Leverage Profits by Reducing Inventory Costs, 35
How to Use Leveraging in Budgetary Planning, 35
Case Study: How a Company President Related Budget Proposals for
Inventory Cost Reduction to Profit Expectations, 36
How to Apply Sensitivity Analysis to Highlight Inventory Cost Reduction
Opportunities, 38
How to Negotiate Improved Inventory Levels, 39
How to Improve 17 Financial Ratios With Inventory Cost Reductions, 46
Six Steps to Ensure a Birth-to-Death Inventory Management Program, 52
Conclusion, 55
3
HOW TO MAKE INVENTORY A POSITIVE SERVICE
ASSET—NOT JUST AN ACCEPTED COST OF DOING
BUSINESS, 57
Defining Customer Satisfaction in Terms of Inventory, 58
Case Study, 59
Three Steps to Align Inventory to Service Levels, 61
Two Calculations for Determining Safety Stocks, 66
Analyze Demand (Usage) Variations in the Replenishment Lead Time, 74
Seven Criteria for Establishing Inventory Service Levels, 78
How to Gain Inventory Management Consensus Using Triangulation, 84
Summary, 89
Contents xiii
4
ELIMINATING INVENTORY TO REDUCE STOCK
COSTS, 90
Reduce Costs Through Inventory Standardization (Simplification), 91
Two Variations on Standardization That Will Cut Costs, 95
Case Study: How a Manufacturer Used Substitution to Reduce
Inventory Costs, 96
How to Apply Commonality Analysis, 97
Four Required Steps to Perform Commonality Analyses, 100
Case Study: How a Cost Saving Commonality Analysis Dug Out a
Significant Saving From a 15,000-sku Active Inventory, 102
Three Vital Purchasing Techniques That Eliminate Ownership Costs, 103
Case Study: How an Inventory Manager Identified Probable Targets
for Consignment Negotiations, 105
Case Study: How a Vice President of a Processing and Packaging
Plant Delayed Ownership of Inventory in Supplier
Relationships, 110
How You Can Analyze Cost Reduction Opportunities Resulting From Lack of
Tolerance/Benefit Control, 114
Case Study: How an Inventory Manager Found Cost Savings Through
Specification/Benefit Analysis, 115
Four Steps to Improving the Specification/Benefit Ratio, 116
Two Easy Ways to Promote Obsolescence Actions, 118
How to Gather Data for Shrinkage Analysis, 121
Case Study: How an Inventory Manager for a Small Company Saved
Millions With a One-Week Analysis Relating Stocks Carried to
Both AIR and AIP, 122
Summary, 729
5
HOW TO ANALYZE LEAD TIMES .. . NOT JUST
ACCEPT THEM, 131
Case Study: How an Inventory Manager Used Lead Time Analysis to
Pinpoint Cost Reduction Opportunities, 134
Purchasing Lead Time Improvement Actions That You Can Recommend, 135
How to Display and Use the History of Procurement Lead Times, 137
Seven Types of Purchase Orders and How You Can Use Them to Reduce Lead
Times, 141
How to Select Areas for Application of Cost Saving Procurement
Contracts, 143
xiv Contents
How Vendor Capacity Planning (VCP) Reduces Stock Hedging Against
Supplier Deliveries, 145
Eleven Steps to Install a VCP, 146
Case Study: How an Inventory Manager Converted a VCP to a
Trackable 54% Profit Increase, 151
Pipelining to Reduce Stocks Held Against Long Lead Time Line Item
Procurements, 153
Case Study: How to Maintain Stocks On-Site Relative to the Pipeline,
Not the Total Lead Time, 154
How to Use Lead Time Balance Analysis to Reduce Work-in-Process (W-I-P)
Inventories, 160
How to Identify Lead Time Imbalances That Build W-I-P Inventories, 161
Five Steps in Lead Time Balance Analysis to Reduce Sitting W-I-P Stocks, 163
Five Recommended Replanning Actions, 168
How to Handle Priority Demands, 169
Case Study: How a Calculated Approach to Handling Priority
Demands Reduced W-I-P Inventories, 170
How to Reduce Base Stocking in Continuous Processing Industries, 172
Factors to Consider When Deciding on the Installation of a Materials
Requirement Planning (MRP) System, 174
How to Apply a Manufacturing Resource Planning (MRP II) System, 777
Consider Capacity Planning Restraints, 181
What to Do When Workload Doesn t Fit Available Capacity, 181
Five Steps That You Should Automatically Take to Overcome Capacity
Restraints, 183
How to Compare Increases in Work-in-Process Stocks With Increases in
Production Lead Times, 185
Case Study: How an Inventory Manager Ensured That Increased
Output did not Mean Increased Work-in-Process, 186
Four Steps to Balancing Operational Outputs in Production Lead Times, 188
How to Reduce Sitting Times Caused by Work Order Changeovers, 189
How Overlapping Can Reduce W-I-P, 190
Analyze Lead Times . . . Don t Just Accept Them, 191
6
HOW TO USE VALUE INEQUALITIES TO REDUCE
INVENTORY COSTS, 195
How Pareto Analysis Has Been Applied in Inventory Management, 197
Four Steps to Performing Pareto Analysis, 199
How the Opportunity Curve is Applied in Inventory Management, 205
Stratifying On-Hand Balances to Free Up Cash, 206
Contents XV
Case Study: How an Inventory Manager Changed a Mandated
Corporate Policy While Achieving the Short-Term Cash
Improvement Goal, 207
Applying Inequality Analysis to Order Size and Frequency to Reduce
Possession Costs, 209
Stratification for Raising and Lowering Approval Levels, 211
Six Steps to Routinize C Item Purchasing Procedures, 213
Cost Improvements From Raising Levels of Replenishment Approvals, 221
Using Inventory Stratification in Count Verification Activities, 223
How to Use Emphasis Analysis to Improve Inventory Scheduling, Storage, and
Material Handling Procedures, 224
Case Study: How an Inventory Manager Changed Her Company s
Approach to Production Scheduling and Value Analysis, 226
How to Apply the Pareto Principle to Value Analysis, 228
How to Analyze Stock Turnover Cells for Cost Reduction Opportunities, 229
Case Study: How Inventory Cell Analysis Was Used to Schedule
Purchasing Department Resources, 234
Summary, 235
7
HOW TO APPLY COST-EFFECTIVE TECHNIQUES
FOR DETECTING AND CORRECTING INVENTORY
ERRORS, 237
Inventory Control Determines Inventory Review Practices, 239
Classifying Errors, 240
How to Stratify Count Verification Procedures, 244
Locate Inventory for Visibility, Accessibility, and Ease of Verification, 246
How to Ensure Accurate Item Count Verifications, 246
Cycle Counting Options That Use Statistical Validity Measures, 247
Four Sampling Techniques Commonly Used for Error Detection, 248
Eight Steps to Improve Error Correction During Physical Counting Periods, 252
Case Study: How an Inventory Manager Changed a Company s
Approach From One of Error Detection to Error Correction, 254
How to Ensure the Input of Correct Data, 257
How You Can Improve Inventory Accuracy With Bar Coding, 260
How to Detect and Correct Those Smaller Error Areas, 263
Five Steps to Prevent Theft, 265
How to Defend Against White Collar Inventory Crime, 267
Case Study: How an Inventory Manager Discovered That One
Person s Trash is Another s Treasure, 267
Case Study: Another Scam That Was Accidentally Discovered, 267
xvj . Contents
Case Study: How a Financial Controller Used Fake Purchase Orders
to Steal $2 Million in Just Three Years, 270
How to Better Control Incoming Shipments, 271
Detecting Inventory Errors for Correction, 273
8
HOW TO DETERMINE AND USE THE TRUE COSTS
OF INVENTORY, 275
How to Separate Variable From Fixed Costs, 277
How to Calculate Carrying Cost Factors, 281
Case Study: How Proper Cost Application to Research and
Development Procurement was Successful Because it Was
Realistic, 288
How the Materials Cost is Calculated, 290
How to Recommend Cost Improvements in Presentations Designed to Secure
Top Management Approval, 291
Profit/Volume Analysis, 292
Case Study: How a General Profit Improvement Drive Was Turned
Into a Specific Project Improvement Effort in a Typical Fast
Growth Company, 297
Five Steps to Determine When to Stock Up to Beat a Price Increase, 300
How to Apply True Cost Analysis to Just-in-Time Projects, 302 j
Case Study: Justifying a Just-in-Time Application Using the True
Costs of Inventory in the Comparison, 302
When is a Quantity Price Break a Cost Reduction? 305
Cost Savings Come From Knowing the True Carrying Costs of Inventory, 307
9
FORECAST CONTROL IS A SIGNIFICANT FACTOR
IN INVENTORY MANAGEMENT—AT LEAST AS
IMPORTANT AS FORECAST ACCURACY, 309
How the Concept of Independent/Dependent Demand Has Revolutionized
Inventory Forecasting, 311
Ten Steps for Forecasting and Controling Dependent Demand, 313
Using the Criticality of a Line Item to Control Both the Forecast and the
Forecast Error, 332
Applying Criticality Factors to Ordering Quantities and Safety Stocks, 334
Case Study: How to Cost Out the Application of Criticality
Factors, 337
Contents xvii
Forecast Control is a Significant Factor in Inventory Management for Cost
Reduction, 340
10
FACTORING QUALITY PROBABILITY INTO
STOCKING DECISIONS, 342
Stocking Procedures Must be Based on What Is Until What Should Be
Becomes What Is ! 343
How to Account for Varying Quality Yields, 344
How to Work with the Cumulative Effects of Quality Yields, 350
How to Apply the Three Quality Yield Rules to Continuous and One-of
Production Processes, 352
Cost Reduction Practices Using Quality Yield Gains and Losses, 353
Case Study: How an Inventory Control Manager Took an Active Role
in Inventory Cost Reduction Through Work Sampling of Quality
Practices, 355
Six Steps to Implementing an Operation Procedures Sampling Study, 357
Working With Robust Quality—Making it Right the First Time, 365
Factoring Quality Probability Into Inventory Management Decisions, 366
11
COST REDUCTION TECHNIQUES FOR IMPROVING
PREVENTIVE MAINTENANCE STOCKING
PROCEDURES, 369
Costing Preventive Maintenance Stocks by PM Practices, 370
How to Work with Actual Versus Planned PM Schedules, 371
Case Study: Achieving Savings by Making the Agreed Plan Work, 373
How the Ratio/Cost Approach Can Take the Place of Probability Analysis for
Determining Preventive Maintenance Schedules, 375
Downside Risks to Consider When Employing the Ratio/Cost Method for
PM, 380
Applying Standardization and Commonality Analysis to PM Stocks, 381
How to Delineate Between Preventive and Demand Maintenance Stocks, 382
Five Steps to Achieve Maintenance Inventory Cost Reduction While Supporting
Preventive Maintenance Schedules, 385
Ascertaining the Critical Nature of a Stockout for Demand or Preventive
Maintenance Tasks, 386
Case Study: Practical Advantages to Classifying the Criticality of all
Preventive Maintenance Schedules, 387
xviii Contents
How to Calculate Inventory Savings While Providing Maintenance Inventory
Support for Local Area Maintenance (LAM), 389
Calculating the Materials Support for Local Area Maintenance, 391
How to Classify Preventive Maintenance Inventories, 394
How to Consider the Contractor PM Option, 395
Cost Reduction Techniques for Improving PM Stocking Procedures, 396
12
DEVELOPING INVENTORY REPORTS THAT MEET
MANAGERS INFORMATION NEEDS, 398
Steps for Performing a Top-Down User Requirements Analysis for
Improved Inventory Management, 400
Apply Management-by-Exception Concepts for User-Designed Action and
Status Reports to Help Middle Management s Cost Reduction Efforts, 402
Specific Exception Reports for Inventory Management, 404
How to Establish and Control the Purchased Goods Inventory Budget, 407
How to Use Inventory Cost Inequality to Make the Budgeted Expenditure Plan
Work, 410
Case Study: How a Distribution Warehouse Inventory Manager
Converted a Random Cash Control Procedure to an Inventory
Cost Reduction Program, 412
Examples From the Infinite Variety of Reports the User Can Create for
Improved Inventory Management, 414
How the SEODO Approach Allows Purchasing Managers to Use Their Skills
More Efficiently, 416
Steps to Establish a SEODO Format, 418
The Aggressive Approach to Changing Historical Listings to Action
Reporting, 421
User-Designed Reporting to Meet the Competitive Sourcing Needs of Today s
Purchasing Departments, 423
How to Assure the Receipt of Actionable Data, 425
13
ADDRESSING THE NEED FOR INVENTORY
MANAGEMENT TRAINING AT ALL LEVELS, 427
Addressing the Deficiency in Inventory Management Training, 428
Gaining Top Management s Support Through Appreciation Training, 429
Training Peer and Support Functions, 431
Training Inventory Workers in Operating Procedures, Data Entry Requirements,
and Forms, 436
Contents xix
Choosing the Training Approach, 440
How to Ensure That Both the Trainer and the Training are Qualified, 441
How to Choose Between In-House or Public Seminar Training, 443
Examples of Available Inventory Management Training Programs, 445
Tying Training Needs and Applications to Job Descriptions, 447
14
AUDITING PRESENT INVENTORY MANAGEMENT
PRACTICES, INCLUDING SHORT-CUTS TO
SELECTING COST REDUCTION
OPPORTUNITIES, 450
Choosing the Right Time to Conduct the Materials Audit, 452
Who Should Conduct an Inventory Management Audit? 453
How to Use a Combination of Skills to Audit Inventory Management, 455
Some Quick and Dirty Inventory Management Audit Techniques, 457
Four Steps to a Work-in-Process Cycle Time Analysis, 457 I
How to Use Sitting Time Analysis as a Simple Audit Tool, 459
How to Use Weir Gate Analysis to Conduct a Mini-Audit of Raw Material and
Work-in-Process Inventories, 460
How to Progress From the Statement of Inventory Management Philosophy to
the Audit of Cost Reduction Techniques, 461
Why Financial Audit Questions Rarely Cover Those Which are Required for a
True Audit of Inventory Management Practices, 462
Sample Inventory Management Audit Questions, 462
—Detection and Correction Techniques for Loss Control
—Assuring the True Costing of Inventory
—Providing Forecast Control
—Factoring Quality Yields Into Stocking Decisions
—Improving Preventive Maintenance Inventories
—Addressing Data and Reporting Needs
—Discerning Inventory Management Training Needs
—Auditing Inventory Management Practices
—Personnel and Organization Capability Analysis
Case Study: How a Company Dramatically Improved Operations as a
Result of a One-Time Inventory Management Audit, 478
Applying the Inventory Audit for Cost Reduction, 480
xx Contents
15
GETTING STARTED ON AN INVENTORY
MANAGEMENT COST REDUCTION PROGRAM, 482
How to Set the Proper Goals for an Inventory Management Cost Reduction
Program, 483
How to Use Inventory as Protection Against Customer Dissatisfaction, 484
Eight Steps to Initiate an Inventory Cost Reduction Program, 485
How to Use Failure to Improve Your Strategy, 488
When to Consider Outside Help to Improve Inventory Management, 488
Getting Started—or Restarted—in Reducing Inventory Costs, 491
SUGGESTED ADDITIONAL READING, 493
INDEX, 495
|
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dewey-ones | 658 - General management |
dewey-raw | 658.787 |
dewey-search | 658.787 |
dewey-sort | 3658.787 |
dewey-tens | 650 - Management and auxiliary services |
discipline | Wirtschaftswissenschaften |
format | Book |
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spellingShingle | Kobert, Norman Managing inventory for cost reduction |
title | Managing inventory for cost reduction |
title_auth | Managing inventory for cost reduction |
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title_full | Managing inventory for cost reduction Norman Kobert |
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title_short | Managing inventory for cost reduction |
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