Noontime Knowledge – Inventory Management In Uncertain Times

July 20, 2022
12:00PM - 12:45PM
Zoom meeting
Noontime Knowledge – Inventory Management In Uncertain Times

 

Join us to see how we can help you simplify your process and get better results!

More than ever, manufacturers must balance risk, cost, and opportunity to develop and field-test best practices for inventory management.  Production planning and scheduling systems must answer fundamental questions – What do I make next? How many? When do I start? Pull systems are the simple Lean alternative to traditional scheduling tools. Production is based on consumption rather than forecast. In principle, pull systems are straightforward – a Kanban signal or two, a FIFO lane, and you’re done. 

The real world is often more complex. Supermarkets are the application of pull systems to multiple items, taking into account seasonality, capacity constraints, lead time, and unpredictable demand variability. This session will touch on these and other real-world complications and suggest approaches to designing successful systems.

Supermarkets are a powerful tool for managing inventory and scheduling resources. A properly designed supermarket pull system provides lower inventory with fewer stock outs while making the process as simple as possible from the perspective of the operator.  They are designed, modeled, and tested against historical usage patterns.

An Inventory Management engagement starts with assessment and training and can be delivered in approximately eight weeks. Detailed analysis of historical data provides insights into trends, cycles, and variability. A dashboard allows trade-offs such as inventory cost vs. coverage to be quickly evaluated. The benefits of process improvements such as lead time reduction and plant layout are easily quantified, leading to long-term beneficial results. Vermont clients have seen sales growth of $500,000 – $1,000,000 and two – three times that in retained sales; investment and cost avoidance are often measured in six figures. 

Read below what one company leader said about his company’s pull system experience: 

“VMEC was able to bring their experience with other companies to bear and proposed a pull system in our seed warehouse that enables us to increase capacity in our production and fulfillment process.”
– Michael Allan, Operations Director, American Meadows

This session will be hosted by Bill Kuhns, Principal at Vermont Energy Controls LLC, VMEC Service Provider as well as retired VMEC Professional Manufacturing and Business Growth Advisor.