Strategos Lean Briefing

The Newsletter of Lean Manufacturing Strategy
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8 October 2008      

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

Lean Operations Seminar

Jakarta, Indonesia  -  6-7 November 2008  -  Quarterman Lee, Facilitator

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The Strategos Guide To Value Stream and Process Mapping goes  beyond symbols and arrows. In over 163 pages it tells the reader not only how to do it but what to do with it.


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Books & Videos

Guide to Cycle Counting

Warehouse Planning Guide

Human Side of Lean Video