THE DEADLY YEAR-END PHYSICAL INVENTORY

The physical inventory wastes more capacity for no benefit than any other single operational activity. So why do companies still do it?

Statement of inventory value provides one of the easiest ways to impact earnings (ergo, taxes) and balance sheet results. For that reason, auditing firms will not sign off on the financials without some verification of inventories.

Everyone in operations knows that the process of "Stop the presses!; We're going to count" is a wasteful one that changes numbers without improving them. But somehow this show of massive force convinces the auditors that the numbers are more valid than they were before.

Stop the madness!

An EFFECTIVE cycle count process — one that identifies and actually fixes problems causing inventory inaccuracies rather than simply changes quantities in the computer — will eliminate the physical inventory within a few short years.

The traditional "count A items monthly; B items quarterly and C items annually" method is ineffective in eliminating the physical. An effective cycle counting process delivers valuable information in a time frame that facilitates fact–based research and root cause problem solving.

Quit making excuses. You don't have to do a physical inventory. You just need accurate inventories.

The Starting Pistol

Ben Franklin:
"He that is good for making excuses is seldom good for anything else”

The Tape

Rebecca Morgan:
""Excuses can identify problems that need to be solved. Take them away."

February 18-19, 2015: Ft Lauderdale FL: Lean Frontiers is presenting its first Kata Summit, providing information and networking on both the Improvement Kata and the Coaching Kata. If you are not familiar with Kata methodology, this provides a great opportunity to learn how it can help your company.

March 5-6, 2015: Austin TX: The 11th Annual APICS 6 Packed Conference is featuring Becky Morgan, speaking on "Why Lean Doesn't Stick." The two day conference includes 5 tracks, keynotes, and networking opportunities.

March 11-13, 2015: Atlanta, GA: Dr. Alan Weiss will be joined by Dr. Martin Seligman and 9 expert others in this 2.5 day highly interactive Million Dollar Consulting Convention. If you want to learn from the best, this is a great opportunity to improve your consulting skills. If you're not working continually on self-development, how can you expect companies to trust you for expert advice?

April 8-10, 2015: Columbus, OH: The Ohio State University Center for Operational Excellence (COE) is presenting the Leading Through Excellence Summit. Workshops, tours, and interactive breakout sessions. Early-bird discounts are available.

April 19 - 23, 2015: Jacksonville, FL: The Additive Manufacturers Users Group (AMUG) conference includes presentations, hands-on learning, and vendors addressing 12 different additive technologies, ranging from 3D Printing to Fused Deposition Modeling to Selective Laser Melting. You know these technologies will impact your business. Consider learning a lot all in one place.

May 18-21, 2015: Long Beach, CA: If April doesn't work for you, check out the SME RAPID conference in May to learn about additive manufacturing processes. Both AMUG and RAPID conferences have been delivered for many years. Compare the two conference offerings and select the one that best fits your current interests and experience.