Improve Inventory Accuracy and Accountability with Point of Use Concept

Posted on: March 5, 2010 | By: SuperUser Account | QAD Business Process

One of the most frustrating issues facing manufacturing companies is inventory inaccuracy. Inventory accuracy is a critical input to executing a successful supply planning process. A simple yet effect method for improving inventory accuracy is to implement the point of use (POU) inventory concept. POU creates a clear distinction in ownership between the storage warehouse and the production floor. Operations that do not have this separation in place often find it difficult to determine the root cause of inventory problems and instead of a solution, end up with finger pointing and reoccurrences of the problems. While this concept can be used with other manufacturing methods, the QAD Advanced Repetitive Manufacturing module makes utilizing POU a no-brainer.

Once POU is properly implemented and executed it will not be long before the effort starts to pay off. Below are just a few of the benefits that can be realized immediately:
• Clear definition between warehouse/storage inventory and shop floor inventory – no question about who owns what.
• Ability to implement a cycle counting program in the warehouse as none of the inventory is ever “in process.”
• Quickly find the root cause of inventory inaccuracies in the point of use location – hand-off process ensures there is no argument about what moved in and out of the POU location.

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