TS Clause 7.5.1.1 requires:

"the organization shall use an inventory managment system to optimize inventory turns over time and assure stock rotation, such as FIFO."

Please teach me how can practice of FIFO lead to optimization of inventory turn.

:thanks::thanx:

It doesn't optimize inventory turns, it assures stock rotation.

Dear Howste,

What system contirbute to optimizing inventory turns over time ?

Pinpinnnnnnnnn:thanks::thanx:

Dear Howste,

What system contributes to optimizing inventory turns over time ?

Pinpinnnnnnnnn:thanks::thanx:

PinPin,

Excellent sales, accurate forecasting, accurate production planning, timely purchasing processes, and flawless manufacturing processes. In short, the whole quality management system has to work in concert to minimize inventories.

Stijloor.

Dear Stijloor,

Yes! Agree! :thanks::thanx:

But the clause says "inventory managment system", besides implementing FIFO, what else to implement in this so-called "inventory managment system"?

pinpinnnnn:thanks::thanx:

Dear Stijloor,

Yes! Agree! :thanks::thanx:

But the clause says "inventory management system", besides implementing FIFO, what else to implement in this so-called "inventory management system"?

pinpinnnnn:thanks::thanx:

PinPin,

There are obviously computer programs to help you manage inventory, but the actual effectiveness of such a system depends greatly on accurate material/part/product identification (and possible traceability), accurate count, location, and protection of product integrity, etc.

Inventory/Warehouse employee awareness and discipline are key factors.

Hope this helps.

Stijloor.

I believe that optimizing inventory turns requires efforts throughout the organization. Take a look at clause 6.3.1.6.3.1 Plant, facility and equipment planning

The organization shall use a multidisciplinary approach (see 7.3.1.1) for developing plant, facility and equipment plans. Plant layouts shall optimize material travel, handling and value-added use of floor space, and shall facilitate synchronous material flow. Methods shall be developed and implemented to evaluate and monitor the effectiveness of existing operations.

NOTE These requirements should focus on lean manufacturing principles and the link to the effectiveness of the quality management system.I believe that the lean principles mentioned in the requirements and the note will help to achieve this.

Unfortunately with the downturn in the automotive industry, some will have the inventory system called F.I.S.H. (First in, still here):nope:

this is an example of inventory turn over classified under ABC

thanks

You do not have to reinvent the wheel. Most accounting packages (you may have to add in the stock control module) will provide you with this information.

Dear Stijloor, Howste, ralphsulser and pmwong,

I got it!

ralphsulser, yes, current economic condition will cause the FISH to go bad and the companies to go BUST and many of us to go LIFO (last in first out, i.e. last employed first out)! :(

pmwong, thanks a lot for the attachement! :thanks:

Stijloor and Howste,
Yes, I learned here, managing alll the mmmmmmmm with good concept and practice you enlightened me, it is called Inventory Management System! A MILLION THANKS TO YOU!

:thanks::thanx:
pinpin
:magic:

Thank you Harry!:thanks::thanx:

pinpin :magic: