05-30-2017 06:48 AM
"The more inventory a company has, the less likely they will have what they need." - Taiichi Ohno
In today's market, it has never been more important to keep a lean operation as competition is greater than it has ever been. With limited resources, it is important to put those resources toward growing the business and not allowing them to sit in storage. Two of the 7 Wastes of Lean are Overproduction and Inventory. The combination of these factors can cause inventory to pile up and tie up valuable resources that could otherwise be leveraged for many other purposes.
Below is an example of how to identify waste in your organization's inventory portfolio. A few principles are used in order to identify areas for focus and improvement:
Below, I have used these three principles to create a dashboard to show an example of what an inventory analysis looks like and how to leverage the principles mentioned above to more efficiently manage inventory. Here you can see the parts with the highest demand, identify which parts to reduce inventory levels for and which groups of parts need to be turned over more frequently.
Let me know your thoughts and feedback,
Great looking report! I have been implementing a pareto chart, but ran into some difficulties getting it to work properly. Let me know if you have any tips or could point me in the right direction to get me closer to the visual/calculations your using.