Smart Inventory Solutions. Phillip Slater
Terms and Expressions
What is the Purpose of Having Inventory?
Why Spares and Indirect Inventory Is Different
An Introduction to the Materials & Inventory Management Cycle
Comparison of Theoretical and Actual Inventory Management and Control
Determining the Re-Order Point (ROP)
Determining the Re-Order Quantity (ROQ)
A Word on Monte Carlo Simulation
Do You Hold Too Much Inventory? Check Your Stock Turn Ratio
Chapter 3 The Financial Impact of Inventory
The Inventory Management Tension
A Simple Model of Business Economics
The Four Financial Reports that You Absolutely Must Understand
How Much Cash Can You Generate?
Chapter 4 People and Processes
Adopting a Zero Inventory Mindset
The Influence of Process
Systems Thinking
The MIM Cycle in Detail
Chapter 5 Policies & Procedures
When is Critical Really Critical?
The Spares Stocking Policy
Chapter 6 Issues, Myths and a Few Home Truths
Why Inventory Reduction Often Fails
Cracking the Inventory Code
5 Myths of Inventory Reduction
Why You Might Hold More Inventory Than You Really Need
Chapter 7 The Spare Parts Storeroom
The Central Hub
Squirrel Stores & Why You Would Be Nuts to Keep Them
MRO and Engineering Spares: Lean, Mean or Somewhere In Between?
Is Your Storeroom a Pit Stop or a Supermarket?
Chapter 8 The 7 Actions for Inventory Reduction
The Bath Tub Principle
Hypothesis Driven Analysis
Double Loop Learning
Action #1: Have Someone Else Hold It and/or Pay For It
Action #2: Sell Excess and Obsolete Stock
Action #3: Eliminate Duplication
Action #4: Change the Factors That Drive Safety Stock
Action #5: Reduce Reorder Stock
Action #6: More Closely Match Delivery with Usage
Action #7: Reduce the Value of Items Held
Chapter 9 Inventory Process Optimization™
Beware Implicit Assumptions
The Inventory Process Optimization™ Method
Stream 1: The Individual Parts Review
• The Inventory Cash Release® Process
• Getting the Focus Right
• When to Apply Which Action
• The Step-By-Step Process
• Example Application of the ICR® Process
• Reviewing the Long Tail
Stream 2: The Management Process Review
Chapter 10 Execution: Taking Action to Achieve Results
Selecting Your Inventory Review Champion
The Role of Your Inventory Review Champion
Who to Involve in an Inventory Review Program
The Three Stages of an Inventory Process Optimization™ Program
Measuring Your Progress
Integrating New Inventory Items
Integrating Inventory Process Optimization™ with Inventory Management
Chapter 11 Case Studies
Case Study 1: Establishing a Materials and Inventory Management System
Case Study 2: Applying the Inventory Process Optimization™ Method
Chapter 12 Where To From Here?
Bibliography
Appendix A: Materials and Inventory Management Glossary
Appendix B: Data Collection Questions
Index
Need More Information?
Tables
Chapter 2: The Mechanics of Inventory Management