Guide to Inventory Accuracy

The accuracy of the existing problems? Implementation of technologies such as bar code systems, and interact with technology, choose the light is often assumed that the solution lies not in the inventory accurate. If properly implemented these technologies can help reduce errors, but no one can eliminate all errors, and poor implementation of this system allows you to worse than before. Whether you are planning to implement additional systems or should not be considered in the care of the first essential.

Basic knowledge


Process definition

Program files

Staff training

Probation officer

Performance monitoring


Strictly follow the

Accountability system



There is nothing revolutionary on the list of "basic knowledge" is not only a series of steps to determine the process to achieve a higher level of accuracy in inventories. Your success or failure will depend on the implementation of these steps. This should not be sent to; delivered a quick solution, so as to alleviate the urgent need to work together from the damage that may be more in the long run, because the success of this program, and the need for cooperative efforts, and many of the people in your organization. If the first attempt fails, you will find, more difficult to obtain a high level of cooperation, and your next attempt. Spend more time in right.

Position. Maintaining inventory accuracy, and it must be an integral part of that, the position of the organization. Such as quality, customer service, plant, safety and accuracy and must be encouraged throughout the organization is everyone's responsibility. This attitude must start at the highest level. Ah yes, I know you want and senior management have an accurate inventory, but you you through your decisions and business practices, and encouraged. Often be a short name of "customer service" (this also applies to the quality of the process, and inventory management and production planning), to reduce or eliminate the effectiveness of plans in the long run, this will reduce your ability to serve customers. Remember, these programs and the goal is to satisfy customers, not compromise it.

Process definition. Do you struggle to make any progress, if you have not clearly identified in the inventory impact throughout the organization. In determining the procedures, we must look for opportunities for error and to implement change in order to eliminate or reduce them. Even more accurate than the staff would be a mistake, and I would suggest that an inspection of the key actions in place. To allow as many people as possible to participate in taking steps to ensure that you have a full and accurate understanding of the process. Missed any step in this will require new procedures and additional staff training, and again, "to spend some time, and the right to do."

Program files. This is part of your use of the previously identified in the files of the program will be in accordance with the staff to maintain the integrity of the stock. Record of the proceedings should not be limited to stocks, should complete the procedures, including quality, physical aspects, and security. Such a document should be clear and comprehensive as possible. Should be written specific to a specific task and work responsibilities, it must include all staff need to know to complete the task alone. For example: if the securities were responsible for reporting to the Secretary in charge of any dispute, namely that all countries should be in the process of the stock clerks, even if additional measures to deal with differences. It should also include methods and procedures and to fill in the correct processing of documents and the time the input data, and inspection, and all must be implemented. If there is any exception to this procedure should be specified in the document, and those who do not have documents allowing exceptions in the process of reducing their effectiveness. Is unrealistic, and the program is a "wish list", and of the requirements of specific tasks. You must be ready to implement all the measures. Upon completion of the documents, I suggest you first of all, the distribution of many of the key actions of the staff, and then take a few weeks time, you and your key staff to monitor the existing initiatives, if there were any lost or found incorrect. Once achieved, it should be a formal implementation procedures, and distributed to all staff.

Staff training. Release does not constitute a written staff training. It is important to develop a training program, after all these procedures and user groups. Take all the necessary time to ensure that they have a full understanding of the proceedings. It is clear that the program file is the only way for the implementation of its mandate. If you do not have your business in determining the correct procedures and records, which should not face many of the surprises of training. No change or attempt to file an exception at this time (unless there was a big mistake). Changes in the last minute, or an exception, and will lead to confusion and reduce the value of this document. Notes and possible changes in the future of this program instead. To set a timetable for the dissemination and implementation of changes (every three months or half a year). The revised procedures in many cases, and often causes confusion and makes it difficult to enforce compliance.

Testing of the employee. I am a great advocate of formal testing procedures for staff. This is the only way to know whether it was known (or even in reading). Prepared, which would intimidate the hell your staff. Not be very difficult to test, and suggest that multiple-choice questions, and perhaps some true / false. You may also need to test, to require its employees to perform the task with the existing tests. For the points, to include testing, is well known problems, is over. There should be no punishment is not the correct answer during the examination. No correct answers to a reporter's question should be discussed by the staff to ensure that it is now proven to understand the correct answer. You may need to make the necessary arrangements for an oral test for lack of reading skills of the staff or other arrangements, if the language is the problem.

Compliance with the monitoring process. You should begin the process of monitoring the procedures to be followed immediately. Note any action inconsistent with the written procedures and must find an urgent solution to the participation of the staff. As stated above, written procedures, the only way to do the job. To allow the staff to "do us the way" (even though this method is a better way) will not be able to apply the other issues, and will cause problems when the process of change. If they have a better way, that this amendment for the future when it becomes the "only way".

Standard-setting. I am also calling for high accuracy and minimum standards of production, where possible. Research to ensure that specific criteria are not high enough, it can still be achieved. You will need to implement these standards, so must the restraint correctly. In case of doubt, the lower settings, you can always increase, it is more data. If you set too high you put a very difficult position implemented in a timely manner. Criteria should be to identify and implement specific tasks. For example, the accuracy of stock level clerk in the indiscriminate storage storage area will be less than 1 storage in fixed locations. Standard-setting needs to be follow-up, accuracy and productivity of the job is done, and more viable, even when you have a small number of people that perform the same task.

Strictly followed. Whether the standards have been developed or not, I still recommend the accuracy of course, organizations and individuals. It should always be followed by accurate measurement of percentage of total transactions. Strictly follow the license plate number (the number of errors) for your employees more productive in the subject, and tends at the organizational level will be the difference between the commercial activities. Strictly followed and staff should be informed of a positive way, but is a tool to improve the operations and personnel. I have found by tracking simple and accurate communication between the staff, you'll see an immediate reduction in errors, even if it had not been identified on these standards. The truth is we all want to be accurate; the problem is that we all believe it is accurate and, therefore, all other persons who are not true.

Accountability. The following documents must be held accountable procedures. You have the time to document procedures, provide training and testing. If a person does not comply with the procedures, we must deal with the application of appropriate disciplinary action. So simple. You may be surprised not only how personal the following actions that could screw up your list. If you do not the officials responsible for the contract, and you can get rid of everything you have done this. Error in the error, so that each one of them, but did not specify the procedure is a conscious decision made by staff did not do anything, and his instructions.

Count, count, count. We have to believe that we have already taken these steps, we must now assume our inventory accurate. Not necessarily. You will be expected to determine the accuracy of, and identify areas that need further evaluation. At year-end physical inventory of the tools used by accountants and do very little for the accuracy of the inventory. You have to count the inventory on an ongoing basis (the count), in order to maintain a high level of accuracy. This is the best way to identify problem areas in a timely manner and to provide an enabling environment for further improvement. To calculate the frequency of interest should be designed for your specific type of the process. Read my article on the cycle count and physical inventory and to make sure of the count of the topics listed in my book.

Re-evaluation. You should periodically re-evaluate the processes and procedures for you. The outcome of your cycle counting procedures should be noted that the trend of your areas of development need to be strengthened. Often change the working conditions and new processes needed to complete this assessment. As mentioned before in an attempt to avoid frequent changes to the procedures (a note on the day), and a more effective plan to amend the date, and a group of a number of amendments in a revised version of the procedure. These changes must be appropriate to carry out the testing and training, as was the case at the beginning of implementation.

May have noticed that each of these steps is highly dependent on the successful implementation of the above steps. While this process is the accuracy of the inventory account is not very complicated, and can implement a daunting task. On the basis of your work environment, it sometimes seems to be an insurmountable task is to change the position of inventory accuracy. This requires a high level of effort and diligence, to ensure success.

Other proposals.

Here are some new recommendations may help you to find a more accurate inventory.

After dedicated managed inventory. Ensure control of the staff will not affect your listing. Particularly in the manufacturing processes of priorities, and machine operators and production managers to meet the production plan, so that the computer works, and to ensure the quality of products being produced. Inventory accuracy is always the primary responsibility for these types of jobs. Once I came to this realization, it is easy to see the benefits of your inventory and material handling by the responsibility, whose main responsibility is inventory. In addition, your material handling / storage position, we must limit the people to do inventory control miscellaneous category.

Control staff turnover. I know that is easier said than done. Time for training, and now you need to do to maintain. When you send these processes and procedures that will be controlled by the finding that the new staff will become the # 1 source of errors. My experience has shown that new employees are usually 2-5 times the error for a period of one year, 5-10 times the staff have committed many mistakes, and 5 years for employees. These figures are based on tracking accuracy, and promote continuous improvement of the business. If it were not followed precisely, your 5 years, and staff may make many mistakes, because in the first year. He also served as staff turnover is high, the results are often short-term employees and will often lead to more errors.

Expulsion or re-prepared staff. This seems to be a pair of conflicting advice, but if you have to make every possible effort to assist staff to improve the accuracy and the lack of progress, you need to allow them to stay away from your inventory. Again, do not underestimate the damage, may lead to an error of staff.

Do not be afraid to examine the scene. Some people believe that the work of inspection or review or defeat waste, because it "should be the first time", so I would like to say once again, and everyone is wrong, which means everyone. If you are found in some areas, prone to error too (such as the indiscriminate storage) or the basic components that operate on the error that could have significant adverse effects, and to consider in the examination of the list. And can be verified to ensure that employees work or a specific examination. The shipments destined always kind of examination, where a certain type of inspections of the various operations. In high-volume, low value freight business who are looking for simple goods may be possible in all this, quantities of a few, high value added ships that I already have 3 people doing extra check each shipment before loading.

Storage area. How to maintain your products will also affect the accuracy. Crowded areas become "black hole" missing in the product. Congested areas to increase the damage caused by products, and often deals with the corrections being made inventories. High-density storage and makes it very difficult to determine the actual size of products. Maintaining the lighting, and the continental shelf, and the product description, the organization that facilitates the selection of shares, and the screening of products and to enhance the level of accuracy.

Knowledge of the inventory system. More than you understand your specific inventory system, the more successful you functioning optimally. Computer system, often accused of things are usually proven to be human error, but in some cases, the system of your computer can be the root cause of the problem. Mistake, error, or any storm you want to call them, and there is a change in the parameters of the system optimum in a region which depends on the damage. The only way to identify the source and correct these problems, we have a full understanding of your system is how to build and how to deal with specific actions. Increased use of in order to obtain a high level of knowledge is a wealth of information you can extract your system. Today on a large scale to maintain the software and a large number of data, and include more features to achieve much more than most users. Managers must be to play a more active role in the establishment and implementation of the system, if they want to optimize the system to meet their business needs. Days to allow all the services of the disappeared, and the level of employment is the most important sector is not sufficient to deal with the complexity and difficulty of the deal today. Staff often spend a lot of time to ensure that the operating system, rather than its functions optimally.

The final result to improve the accuracy will be directly related to efforts to achieve this goal. Securities and approved the establishment of a viable plan to allow the accuracy of the habits of the people, and the right, as has been the practice throughout the organization, you will find that the accuracy of minutes and plans to launch itself. Prior to that, which requires a lot of work, and implementation.