Inventory control

Inventory Control: Seven wastes in Lean Presented By:

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Seven wastes in Lean  They are also called seven deadly wastes of    

manufacturing.

They are identified and grouped as activities with no value.

Their processes occur during manufacturing and limit profitability.

They are also termed as overproduction .

Occurs when a manufacturer creates more goods than it can sell. http://www.premiumessays.net/

Definition and Explanation of Bottleneck Machine  A bottleneck is an explained situation.  It is where efficient system performance is

prevented by a single or maximum number of resources and machinery.  It is an overcrowding part of the system where the chain process is slowed down.  Firms have to enhance its bottleneck first in order to increase performance. http://www.premiumessays.net/

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Illustration of a An increase inbottleneck the width of existing point

increase outflow.

These limiting factors in machinery and processing are the bottleneck point.

Mechanisms of bottlenecks such as data processing software influence the system designer’s prevention of bottleneck situations This limit performance or capacity by offering a crucial part or increasing high throughput.

An approach that lowers inventory costs and improves services to customers is reducing the replenishment lead times http://www.premiumessays.net/

 Reducing lead times is an ideal strategy of    

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reducing inventory costs .

It also enhances client relationship.

This helps when considering raw material lead time.

It also involves the time connecting external parties who are the clients.

This lead time is broken into reviewing time, time spent on manufacturing and transportation for it to be effective.

The need is identified at review time and an order is also raised. http://www.premiumessays.net/

Costs related to Keeping Inventory  Inventory costs are classified as ordering, holding     

and stock-out costs.

Ordering costs entail activities involved when placing an order.

It can also be calculated by evaluating Economic Order Quantity.

EOQ= EOQ = √ (2×A×CP/CH), A=Annual demand, CP=Replacing cost per order, CH=unit holding cost per year.

Holding costs included costs incurred in stock keeping.

Shortage costs accrue based on lack or insufficient stock safety. http://www.premiumessays.net/

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