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8/28/2012
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Perfecting the Cycle Count
Debra A. Hansford, CPIM, CIRM, CSCPAPICS Master – CPIM, CSCP, Lean, Instructor Development
Debra’s Cycle Count History
• Focus on the root cause and not the number of counts per daycounts per day.
• View cycle counting like inspecting incoming materials.
• Annual inventory created more problems.Annual inventory created more problems.
• Needed change!
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The Goal?
Count all parts within a year?
Identify and correct process problems?
Traditional ABC
A items 12 times per year
B items 4 times per year
C items 2 timesC items 2 times per year
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ABC Tolerance
AWithin tolerance?
0 %
B+/‐ 2 %
C
Within tolerance?– consider correct– do not adjust
C+/‐5 %
Root Cause Analysis
Key to successKey to success
Keep it simple ‐ 5 Why
Identify actions that creates reactions
Look for process variances
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Controversy?
Inspecting parts increase quality or stop unacceptable quality?
Cycle counting increase i di llaccuracy or periodically
“correct” balance?
Control Groups
Determine accuracy goal
Select numbers
Count every day
Root cause analysis to correct
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Selecting Challenging Part Numbers
By process By supplier By area used
By size By value ???By size By value ???
Add To Current Cycle Counts
KaizenKaizen
Identify Create small control group
potential process problems
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Simulation
Simulation Observations
Cycle count everything
Control group
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Simulation Observations
Cycle count everything
Control group
Perfecting The Cycle Count
• Consider adding control group
• Root cause analysis over counting parts
• Get the buy‐in from management
• May be viewed as “unconventional”
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Thank You!
Hope you have some ideas to challenge the status quo
if your current cycle count practices need a change!
Deb@PreCrest [email protected]
