Comments on: Lean Six Sigma to Reduce Excess and Obsolete Inventory https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/ Six Sigma Quality Resources for Achieving Six Sigma Results Sun, 21 Apr 2019 16:50:51 +0000 hourly 1 https://wordpress.org/?v=5.1.1 By: Nash https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-643 Mon, 27 Aug 2018 12:53:36 +0000 https://www.isixsigma.com/?p=1171#comment-643 From invoices to purchase orders, there is lot of paperwork and documentation involved in inventory management. Several software programs are available in market, which help in inventory management.

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By: Shannon https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-642 Thu, 16 Aug 2018 17:28:24 +0000 https://www.isixsigma.com/?p=1171#comment-642 I am a performance improvement nurse in a hospital and trained in Lean methodologies as well as improvement science in general. But, I have little experience with inventory management. I am currently involved in a project to implement a new Human Milk Program in our Neonatal Intensive Care Unit (NICU). Mothers of these pre-term, very fragile patients are expected to pump their own breast milk at home and bring it in to the NICU so that we can feed their babies. This extremely nutritive breast milk is like gold and can be the difference between life and death for their babies. The problem is that we often have too much breast milk in the fridge or freezer for these babies because the babies are not always ready/able to take feedings. But, later on the baby may need more milk than the mother can produce. We can’t tell moms to stop pumping because they will dry up but we also struggle with having enough room for the inventory. Plus, as I said the milk is considered gold. So, I am going to start by analyzing just how much inventory we have/need. But, are there any tools or ideas that you might have to help me with this?

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By: Hanna https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-641 Mon, 25 Jun 2018 08:58:36 +0000 https://www.isixsigma.com/?p=1171#comment-641 Hi Lasantha.

I am about to commence the same six sigma green belt project as well. Being new to the methodology, i am quite uncertain on how to go about my project. i hope we could share ideas soon.

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By: Jonathon https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-640 Thu, 05 Apr 2018 09:52:51 +0000 https://www.isixsigma.com/?p=1171#comment-640 The reality is that for most businesses to remain in business, they need to protect their supply. If they can’t supply when the customer wants, in the quantity they require, then the customer will go elsewhere.

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By: Name (Required) https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-639 Thu, 15 Jun 2017 10:40:20 +0000 https://www.isixsigma.com/?p=1171#comment-639 I found this post very helpful and informative. Thank you for sharing.

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By: Noel https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-638 Thu, 02 Feb 2017 22:59:53 +0000 https://www.isixsigma.com/?p=1171#comment-638 I work for a company that supplies our office all over the world. My problem is that I have been tasked with trying to reduce slow moving inventory. What would be a good strategy for this?

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By: Chris Seider https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-637 Thu, 22 Dec 2016 17:52:19 +0000 https://www.isixsigma.com/?p=1171#comment-637 If you implement kanbans without finding out big issues, you’ll have disruptions to your business that will ruin the credibility of kanbans.

You can’t “just implement” kanbans.

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By: All reasons can be mitigated by kanban & one piece flow https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-636 Wed, 21 Dec 2016 00:05:55 +0000 https://www.isixsigma.com/?p=1171#comment-636 To counter most if not all reasons mentioned by you in your comment, one option typically recommended is to implement Kanban and “One Piece Flow” (which starts by cutting the current batch size to minimum half or more). You will see that your customers will be delighted due to increased flexibility and reduced lead time (bonus will be improved quality if “Build Quality First Time i.e. Stop-Fix it-Continue build quality first time) is also considered to be a focused effort.

Hopefully this helps.

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By: Janette Clarita R. Pagdonsolan https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-635 Wed, 05 Aug 2015 01:12:53 +0000 https://www.isixsigma.com/?p=1171#comment-635 This is very helpful to reduce possible causes of high inventory on products and re-works. I would use this as reference and future projects.

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By: Sahib https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-634 Fri, 26 Jun 2015 05:24:54 +0000 https://www.isixsigma.com/?p=1171#comment-634 how do we address the issue of these factors :
order cancellations
demand reduction
forecast cancellation
change in design specs
how do we make sure inventory doesnt rise because of these factors? often things go stale because of these factors only.

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By: Brenda https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-633 Wed, 18 Jun 2014 12:28:16 +0000 https://www.isixsigma.com/?p=1171#comment-633 Hi Lasantha
Ideally you should be looking at the stock turn ratios, including obsolete and excess stock. But I would honestly start with a good old fashioned blind stock take (two people count and log the bin locations, sku’s and physical count). This is good way to ensure nothing is hiding away – incorrect binning is a constant battle in warehousing. Then you check your blind count against the system and check the bin locations match (very laborious but a brilliant way to build a case for how you will reduce your inventory value and to highlight inefficiencies within the processes in the company – a lean objective). You may even find a variance between what your system says is stock (and value) and what is physically sitting in the bins. If this is the case, you may already have found one way to ‘reduce’ your stock value by write-offs or write-downs or write-ons. Not ideal but sometimes a necessary accounting procedure. Then you engage yoru sales force and start looking at what has been sitting for long with no stock-turns, try sell this at cost plus 20% or thereabouts. Always avoid scrapping as a stock reduction technique. Its’ more of a short-term solution which hides the causes.
Look at packed items sitiing in ‘delivered’ status but not invoiced out or collected by customers (if that’s how you despatch) – often customers order in a hurry and pay and collect at their leisure.
I’m sure I’ve not told you anything you don’t already know, or aren’t already doing. Good luck with your project!

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By: Lasantha https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-632 Thu, 17 Apr 2014 06:08:22 +0000 https://www.isixsigma.com/?p=1171#comment-632 i am about to commence an inventory reduction project( Six sigma green belt) in my company and i am little bit of confused regarding the data that i should gathered from the stores,
is it possible to go with inventory values of different months or go with inventory turn over ratios.
looking for your valuable comments.

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By: Joshua Boanerge https://www.isixsigma.com/operations/supply-chain/lean-six-sigma-reduce-excess-and-obsolete-inventory/#comment-631 Mon, 07 Apr 2014 19:53:58 +0000 https://www.isixsigma.com/?p=1171#comment-631 concised and well explained information

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