Principles Of Inventory Control Ppt

The Pareto Principle PowerPoint Template is a professional presentation featuring different metaphors that describe the 80/20 rule. the range of political, institutional and administrative rules, practices and. Even for the most organized individual, it can be a challenge to keep a tool crib operating at top efficiency. (This is part of a series of posts examining the 14 principles of The Toyota Way. This new edition continues the tradition of presenting comprehensive yet concise information on cost control that is updated to reflect today's technology driven environment Key terms, key concepts, review questions, and spreadsheet exercises reinforce and. Many times, it is also called on to make funding decisions. Loss of control over the logistics function (especially for critical parts). Warehousing has evolved enormously from its historical roots as the simple storage of goods. Inventory Management is “the practice of planning, directing and controlling inventory so that it contributes to the business' profitability”. - the responsabilities of the senior management and the management body should be associated with the documentation, form, content of the process related to model approval process. World Class Manufacturing is a different set of concepts, principles, policies and techniques. It makes little sense to go for an entire year without knowing the status of your stock. This same principle applies within the management ranks. Inventory yand dPlanning: : The First Steps in Records Management By Suzanne Etherington and Ann Marie Przybyla 2003. In some cases, inventory management is combined with the general logistics systems, which plan and control the arrival of purchased goods into the firm as well as shipments to the customers. Learn the definitions of three popular methods to see if one will work for you. Capturing more supply chain value Figure 1: Companies can derive greater value from their supply chains by ensuring their businesses’ strategies are aligned with tactics and operations. As such, they consider water governance as a. Lean Principles In Wholesale Distribution Supply Chains Do You Pull or Push? MCA Associates 66 Derbyshire, Derby, CT 06418 203-732-0603 www. Defining inventory control • Inventory Control is defined as the supervision of supply, storage and accessibility of items in order to ensure an adequate supply without excessive oversupply. Some large organizations have dedicated tool crib managers. More distance from clients. Of course, this is the opposite to one of the principles of lean manufacturing - the aim of continuous flow. Supply Chain Management Series Lean Warehousing with Manny Cantone, Lean Principles and Capabilities 10 min Manufacturing Inventory Control Consumers. A company, in order to minimize errors in taking the inventory, should adhere to internal control principles by adopting the following procedures: 1. A compliant records management program is necessary for organizations to proactively and pro-gressively manage all data, media and information. 12) Use a good inventory management software. Similarly, 80 percent of your inventory line items (Stock Keeping Units or SKUs) come from 20 percent of your vendors. ) & Vendor Managed Inventory; Practical Exercises; Wrap up and Q & A session; PARTICIPANT PROFILE. Identify current trends in public warehousing. Churchman who is considered one of the pioneers of O. Certainly some modifications would be made for specific circumstances, but the principles of scientific management and bureaucracy were assumed to apply in any organization. IT asset management: How to be efficient Businesses should be looking for ways to reduce costs through improved workflows. "Coordination" Must Exist or There's No Organization -- Only an "Experience" Regardless of the negative connotation of the word "control", it must exist or there is no organization at all. Harvi Millar. In the next part the paper talks about the strategic importance of adopting the World-Class Manufacturing Practices for Indian organizations to endure in fierce competition given by the Global players. Lean is an approach to supply chain management that originated with Toyota, which is why you may hear it referred to as the Toyota Production System (TPS). certain ways to create an optimal output from various input sources, whether it be manufacturing physical products or offering services, it is good to be familiar with the basics of managing these operations. CHAPTER 13. Senior management should have awareness programmes, after which announcement is made to all. Certainly some modifications would be made for specific circumstances, but the principles of scientific management and bureaucracy were assumed to apply in any organization. Inventory Y Y Overproduction / Making To Much Ties up capital, diverts production from customer requirements, loss of inventories Transporting / Moving Things Unnecessarily increases production time, extra WIP Unnecessary Stock / Inventory Ties up capital, risk of changes Waiting Decreases productivity, wastes personnel resources Unnecessary Motion. Inventory Management and Control Inventory or stock is any raw material, work in progress , or finish goods that are within the operations of an organization or business. Lesson 2: Mastermind Alliance. Main purpose of inventory management Inventory management mean methods that are used for organizing, holding and replenishment of stock. Institute for Supply Management (ISM) is the first and largest not-for-profit professional supply management organization worldwide. • The objective of inventory management is to have the appropriate amounts of. Further information on ISO 9000, ISO 9001 and related ISO quality management standards is available. Realize I’m not God; I admit that I am powerless to control my tendency to do the wrong thing and that my life is unmanageable. He is certified in production and inventory management (CFPIM) and as a supply chain professional (CSCP) by APICS-The Association for Operations Management. Chapter 8 identifies the appropriate items to include in inventory, including the treatment of goods in transit and consigned goods. rather than an end in itself, i. What is inventory management? The objective of inventory is to achieve satisfactory levels of customer service while keeping inventory costs within reasonable bounds. txt) or view presentation slides online. Inventory management is the ongoing process of moving parts and products into and out of a company’s location(s). In the demand-driven enterprise, inventories should ebb and flow with the changes in customer demand. Inventory Systems Inventory systems answer the questions: when to order and how much to order There are two categories: •Fixed-Order Quantity System – an order of fixed quantity, Q, is placed when inventory drops to a reorder point, ROP •Fixed-Time Period System – inventory is checked in fixed time periods, T, and the quantity ordered. Aztec Products wishes to evaluate its cash conversion cycle (CCC). Inventory yand dPlanning: : The First Steps in Records Management By Suzanne Etherington and Ann Marie Przybyla 2003. [email protected] INVENTORY CONTROL IN PHARMACEUTICAL SUPPLY CHAIN OBJECTIVES Discuss why inventory control is important for pharmacies. 29 The valuation of inventory 357 30 Bank reconciliation statements 373 31 Control accounts 386 32 Errors not affecting the balancing of the trial balance 402 33 Suspense accounts and errors 410 Scenario questions 428 Special accounting procedures ; 34 Introduction to accounting ratios 435 35 Single entry and incomplete records 447. •When the inventory level for an item drops to the minimum, reorder the item Designate Stocked and non-stock items •Stocked •Items you must always have in stock •Inventory turns justify the. This same principle applies within the management ranks. Getting the material of right quality, quantity and at right time Important Factors 1. Inventory – Inventory or information that is sitting idle (not being processed). ppt), PDF File (. Amongst these related concepts are integrated water resource management, inter-sectoral water management, environmental management, watershed development and integrated water-shed management. Adequate inventory control procedures are not only essential to the overall operations of your store, but also to the long-term health of your business. For example, a $500 million firm can reduce inventory by $34 million and achieve a $2. maintaining the inventory of all medications for a hospital. Best practices in Physical Counting or Physical Inventory that can improve the effectiveness of cycle counting: 1. Understanding the modular framework and using it to implement the activ- ities necessary to meet requirements is the laboratory’s best and easiest means to ‘‘build quality into’’ its daily work in the interests of patient care and safety. Management verses Leadership. Some of the requirements that a forecasting technique for production and inventory control purposes must meet are these: It should not require maintenance of large histories of each item in the. The overall objective of inventory (stock) control is to maintain inventory levels to that the total costs of holding stocks is minimise. Basic Marketing Principles Author: Mickey Smith, RPh, PhD Director, Center for Pharmaceutical Marketing and Management University of Mississippi. However, lean manufacturing principles present a tremendous opportunity to significantly increase production efficiencies and deliver better quality product at lower cost. The insights provided here remain remarkably fresh even ten years after its original published date. Identify the different levels of inventory management Review the characteristics of inventory in the supply chain Detail the strategic inventory management process Describe the elements of an effective inventory management strategy Balance demand and supply objectives Contrast the conflicting objectives of inventory management among marketing. solutions based on the principles outlined in this report. pdf), Text File (. Basic inventory control tops the list of requested features. If you want sustainable success for projects that involve data, then you need to control how that data changes. , wasted time, wasted movement, wasted inventory due to overproduction, customer delays, waiting for approvals, delays due to batching of work, unnecessary steps, duplication of effort, and errors and rework). Inventory Management Practices Information Technology Carter and Price (1995) assert that information is the life blood of all organizations. k 52 financial management jain , premila 170 management principles and basic functions wadhwa , raj. That is knowing, what products are "out there", have much you have each item and where it is. A key reason for the development of Kanban was the inadequate productivity and efficiency of Toyota compared to its American automotive rivals. 8 Great Inventory Management Quotes Robert Lockard April 01, 2013 Leave a Comment This April Fools’ Day, rather than tell jokes or do something really silly, I’d like to do something completely different. World-Class Manufacturing Practices. Model Risk Management: Practices and Principles Page | 3 Introduction Insurance companies are in the business of pricing and taking risks, and models are commonly used and often essential as decision-support tools in that business. Now is probably a good time for a refresher on the basic principles of cost control. Total quality management is a lean business practice often associated with continuous improvement and just-in-time inventory and just-in-time manufacturing. For more detail on topics covered, see the Principles of Operations Planning Instructor Guide Table of Contents. Whether you work for a small business or a major corporation, following ethical principles matters. Purchasing and logistics activities were similarly being integrated with fundamental internal materials management principles into an enterprise-wide approach. Concept of materials management According to Bethel "Materials management is a term used to connote controlling the kind, amount , location, movement and timing of the various commodities used inn and produced by the industrial enterprise. PPT supplements traditional psychotherapy approaches that focus on deficits. The authors of The Definitive Guide to Inventory Management > discuss what inventory is, the role of inventory in supply chain management, and why inventory is such an important metric in supply chain management. inventory and WIP reduction as part of the implementation of the lean approach or as an element of 5S? The answer, as ever, is that keeping inventory and WIP to a minimum is simple best practice. • Understand basic management principles applying to individuals, small and large organizations • Grasp the basics of management functions • Appreciate the ideal characteristics of a good manager • See the importance of knowledge of self when viewing management skills • Recognize professional skills required of managers. Independent pharmacies today need to optimize how much inventory they keep on hand. To maximize quality, the company uses its Toyota Production System (TPS). The goal of Inventory Management will be to explain the dynamics of inventory management's principles, concepts, and techniques as they relate to the entire supply chain (customer demand, distribution, and product transformation processes). , DePaul University Marian Powers, Northwestern Universtiy Sherry K. Even for the most organized individual, it can be a challenge to keep a tool crib operating at top efficiency. Inventory management is a system of overseeing the steady flow of all parts and processes needed to effectively stock and supply units of an organization's product(s). Principles of Inventory and Materials Management (4th Edition) [Richard J. ChApTEr 7: SuppLy ChAiN MANAgEMENT 1 Missionaries of Charity's Gandhiji Prem Nivas Leprosy Centre near Kolkata, India, where leprosy patients receive treatment and learn how to live and work with their disabilities. VAAA Supply Chain Management School Page 9 Principles of Inventory Management Principles of Inventory Management (PIM) is an instructor-led course designed to educate the logistics workforce on the basics of effective inventory management. Total Quality Management has a number of basic principles which can be converted to the figure below. SlideGenius offers global professional PowerPoint & Pitch Deck presentation design services. The definitions of QC and QA in Box 8. Inventory Process Considerations – Interfaces (Procurement, Contracting, Quality, Engineering etc.