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Strategos
L e a n
B r i e f i n g
The Newsletter of Lean Manufacturing Strategy
8
October 2008
www.strategosinc.com
The Glass Ceiling of Cycle
Counting
A Case Study
I recently spoke with a company that was
having difficulty with their inventory
accuracy.
Their situation, unfortunately, was fairly common. It
illustrates an
apparent paradox in cycle counting:
The better the accuracy, the less effective the
counts.
Their finance department had instigated
cycle counting with a goal of 92%
accuracy. They intended to eliminate the annual
physical inventory
when that accuracy was reached.
Their accuracy had risen quickly from the
original 60% range but hit a sort of Glass
Ceiling at 86%. Accuracy had been
stuck here for six months and
frustration was growing. The situation is detailed as a
new case
study in our cycle counting pages.
These pages and my book,
The Strategos
Guide to Cycle Counting & Inventory Accuracy, explain what was
happening and what to do about it. The book is available as an eBook
(personal use) and a Training Edition for your own workshops.
If you are considering cycle counting,
check out our
web pages. Even experienced people may find some
new and interesting perspectives. We also offer a
free
estimating tool that simulates a cycle counting system.
This tool allows you to explore different scenarios such as varying
cycle counts, the effects of ABC stratification and error rates.
I hope you find the articles helpful and
worth exploring.
Best Regards,
Quarterman Lee
qlee@lean-briefing.com
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Lean Operations Seminar
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- 6-7 November 2008 - Quarterman Lee,
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