Last updated on Jul 10, 2024

Struggling with inventory accuracy and waste reduction?

If you're in manufacturing operations, you know how critical inventory accuracy and waste reduction are to your bottom line. Fluctuations in inventory levels can lead to overstocking or stockouts, both of which are costly. Moreover, waste not only impacts your costs but also the environment. By addressing these challenges, you can streamline your operations, save money, and contribute to a more sustainable manufacturing process.

1 Pinpoint Issues

To tackle inventory inaccuracies and waste, start by identifying the root causes. Often, these issues stem from outdated systems or human error. By conducting regular audits and tracking discrepancies, you can pinpoint where the problems lie. Understanding the specific issues allows you to develop targeted strategies to address them, which can range from updating technology to refining employee training programs. This proactive approach can significantly improve inventory management and reduce waste over time.

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Engr. S M SHAMSUL FARHAN,PMP, CLSSBB

Operation Head | Business Head | Manufacturing Plant | B.Sc (EEE) | M.Sc. (BUET) | MBA (DU) | PMP-PMI | CLSSBB | CSCM™ | PGDMBM | PGDHRM |
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To effectively manage inventory and reduce waste in manufacturing, it's crucial to conduct regular physical inventory counts to ensure that your records match the actual stock. Additionally, consider implementing advanced inventory management systems with real-time tracking, automated reorder points, and integration with other business systems. Utilize barcode or RFID technology to enhance tracking and minimize human error, and establish standardized procedures for receiving, storing, and issuing inventory. Incorporate sustainable practices such as recycling and repurposing materials to minimize waste.

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Priyadharshini S

Assistant manager at TVS Sundram Fasteners Limited
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I would like to add below points, 1. To maintain accurate inventory, ROL, ROP, ROQ to be maintained but it will work on fixed demand and known lead time products. 2. Maintain the inventory record 3. Review through Perpetual inventory monthly once or twice. 4. Continuous monitoring of A category product as per ABC analysis. Waste reduction 1. Reducing lead time, Indegenisation. 2. Following JIT lean method instead MRP method. 3. Procuring of Right cost / valued products(quality products) instead of low cost. 4. System based planning 5. Build strong Supplier relationships

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Roger McVey

Materials Manager at KPS Global LLC
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Pinpointing the root cause of inventory discrepancies is always the starting point. I have worked only in manufacturing companies with two systems. 1. Picking all products to each manufactured job order. 2. All raw material is backflush for each production order. My experience is that picking material to each job is the only way to maintain an accurate inventory. Backflushing has it's place but it needs to be limited.

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Leonardo Viergutz

Toolroom Supervisor
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Para combater imprecisões e desperdícios de estoque, identifique as causas raiz, frequentemente ligadas a sistemas desatualizados ou erro humano. Auditorias regulares e rastreamento de discrepâncias revelam os problemas. Compreender essas questões permite desenvolver estratégias específicas, como atualizar tecnologia ou aprimorar programas de treinamento. Essa abordagem proativa melhora significativamente a gestão de estoque e reduz desperdícios ao longo do tempo.

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2 Lean Principles

Lean manufacturing principles are a cornerstone of efficient operations. These principles focus on minimizing waste without sacrificing productivity. By adopting lean practices, such as just-in-time inventory management, you can ensure that materials are only ordered and received as needed, reducing the risk of excess stock and waste. Additionally, continuous improvement practices like Kaizen can help your team identify and eliminate inefficiencies, further enhancing inventory accuracy and reducing waste.

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Leonardo Viergutz

Toolroom Supervisor
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Os princípios de manufatura enxuta são fundamentais para operações eficientes, focando na redução de desperdícios sem comprometer a produtividade. Práticas como a gestão de estoque just-in-time garantem que materiais sejam solicitados e recebidos conforme necessário, minimizando excesso de estoque e desperdício. Além disso, a melhoria contínua através de métodos como Kaizen ajuda a equipe a identificar e eliminar ineficiências, aumentando a precisão do estoque e reduzindo ainda mais o desperdício.

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3 Tech Solutions

Technology solutions like Enterprise Resource Planning (ERP) systems can greatly improve inventory accuracy. These systems integrate various business processes, providing real-time data on inventory levels, which helps prevent overstocking and understocking. Moreover, technologies such as Radio-Frequency Identification (RFID) can automate tracking, reducing the likelihood of human error. Investing in the right technology can be a game-changer for maintaining accurate inventory levels and minimizing waste.

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Leonardo Viergutz

Toolroom Supervisor
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Soluções tecnológicas como sistemas de Enterprise Resource Planning (ERP) melhoram significativamente a precisão do inventário, integrando processos de negócios e fornecendo dados em tempo real sobre os níveis de estoque. Isso ajuda a evitar excesso ou falta de estoque. Tecnologias como a Identificação por Radiofrequência (RFID) automatizam o rastreamento, reduzindo a probabilidade de erro humano. Investir na tecnologia certa é crucial para manter níveis de estoque precisos e minimizar o desperdício.

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4 Process Optimization

Optimizing your processes is key to reducing waste and improving inventory accuracy. This involves streamlining operations to remove unnecessary steps and implementing quality control measures to prevent errors. By analyzing your processes and identifying areas where waste occurs—whether it's material scraps or time lost to inefficiencies—you can develop strategies to make your operations more lean and effective. Process optimization is an ongoing effort that can lead to significant improvements over time.

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5 Employee Training

Your employees play a crucial role in maintaining inventory accuracy and reducing waste. Investing in comprehensive training programs can equip them with the knowledge and skills needed to perform their tasks efficiently. Training should cover best practices for inventory management, proper handling of materials to avoid damage, and the importance of accurate record-keeping. Well-trained employees are less likely to make mistakes that lead to inventory discrepancies and waste.

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6 Continuous Review

Continuous review is essential for maintaining inventory accuracy and minimizing waste. By regularly reviewing your processes, technology, and employee performance, you can identify areas for improvement and make necessary adjustments. This ongoing evaluation ensures that your operations adapt to changing conditions and remain efficient. It's a cycle of assessment, implementation, and refinement that keeps your manufacturing operations running smoothly and sustainably.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Struggling with inventory accuracy and waste reduction?

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2

3

4

5

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1 Pinpoint Issues

2 Lean Principles

3 Tech Solutions

4 Process Optimization

5 Employee Training

6 Continuous Review

7 Here’s what else to consider

Manufacturing Operations

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Struggling with inventory accuracy and waste reduction?

1

2

3

4

5

6

7

1 Pinpoint Issues

2 Lean Principles

3 Tech Solutions

4 Process Optimization

5 Employee Training

6 Continuous Review

7 Here’s what else to consider

Manufacturing Operations

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