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Advanced Inventory Strategy

Ref MM 330
Dates 5 - 9 July 2010
Venue Kuala Lumpur
Fees US$ 4450
CPE Credits 30

INTRODUCTION

Most companies still rely on the Min/Max method for calculating MRP requirements. This is done in spite of more advanced, yet standard components of the MRP package being available.

In abundant times, this method delivered mediocre results at best. Stock-outs still occurred as the Min/Max levels were determined using historical data while excess and redundant inventory remains a headache.

So, what is the solution?

  • First of all, a voyage of discovery is required to fully understand the full potential of MRP. In other words: What can we do with our current software that will result in quick, easy gains in the order of magnitude of 50% and possibly more
  • Secondly is to see the process of inventory management as a system that reacts and interrelates with everything we set out to do
  • Thirdly is to put in place a measurement system that objectively measures the performance of each team as well as individuals contributing to inventory management. Surprisingly, it will include your customer as well
  • Fourthly is to implement a seamless communication process to communicate on a horizontal plane, rather than to rely on the old hierarchical, vertical system

WHO SHOULD ATTEND?

This training session is designed for all personnel involved in Inventory Management i.e. inventory planners, financial personnel, procurement personnel, warehouse and operations managers, end-users and managers.

PRE-REQUISITE

Persons who want to attend this course should have some experience of Inventory Management. A basic knowledge of mathematics is required as calculations will be done using a basic calculator.

PROGRAMME OBJECTIVES

TRAINING METHODOLOGY

Participants will increase competencies through a variety of instructional methods including lecture by an experienced practitioner and consultant, exercises and group discussions covering current practices and their relationship to the implementation of new concepts.

PROGRAMME SUMMARY

The programme will educate the participants in the latest trends in IM techniques. Not only will it deal with the inventory management aspects but also with the interfaces with other areas of the organisation. It will deal with strategic, tactical, operational and contingency measures that can be taken in IM.

PROGRAMME OUTLINE

DAY 1 - Inventory Management

Inventory Management defined

  • IM and the company financial statements
  • Definition of inventory
  • Objectives of IM
  • The IM system
  • Trade-offs in IM
  • Making out a business case for improved IM
Current situation in IM
  • The mechanics of the Min/Max technique
  • The result of the Min/Max method
  • The impact of safety stock
  • The benefit of customer segmentation (one size fits none!)
  • Distinguishing between dependent and independent demand
DAY 2 - Classifying and Planning Inventory

Classification of inventory

  • Dealing with excess and obsolete items, including the procedure to prevent it from occurring
  • The powerful use of the ABC analysis
  • The gross-to-net MRP process
  • Using the Bill-of-Material
  • Different types of Bill-of-Materials
  • Practical example how to do the gross-to-net requirements using the Bill-of-Material
  • Using Distribution Requirements Planning to plan multiple facility requirements
Linking Inventory with the higher level plans
  • Strategic planning process
  • Planning hierarchy
  • Linking the customer requirement with the IM plan
  • Balancing supply with demand
  • Understanding MRP action messages
  • Contingency issues
DAY 4 - Action and Implementation

Turning planning into action

  • Crafting an appropriate replenishment plan
  • Decide on the most advantageous stocking strategy
  • Calculating the effect of lead time on your inventory
  • Techniques to reduce the overall lead time of items
Inventory implementation issues
  • Physical stock take
  • Cycle counting
  • Dealing with theft of inventory
  • Warehouse solutions
  • Dealing with direct charge orders
DAY 4 - MRO Inventory

Managing MRO inventory
  • The special case of MRO inventory
  • Impact of MRO on the financial health
  • MRO maintenance policies and the effect on inventory
  • Application MRO policies
DAY 5 - Ongoing Management           

Using the Inventory Management Matrix to effectively manage your inventory

  • Stratifying your inventory into manageable groups
  • Setting appropriate strategies for each group
Auditing results
  • Auditing your ERP system
  • Physical stock take
  • Cycle counting
  • Summary and course overview

 

 

 

 

 

To Register on this seminar, please click here