Cycle Counting: Seeking Discussion

[Marc]

Is cycle counting needed?

So you are suggesting that a good material control system would not need cycle counting? Please share the resource information you have that would support this idea. With what little contact I have had with APICS, I thought that cycle counting was an acceptable method of checking and making corrections and improvements to your inventory control system.

I don't have any data, only experience. I started this thread because I've seen no cycle counting (a yearly or bi-yearly inventory, yes) and I've seen it as a continuous 'operation' with dedicated people (expensive!). I've seen companies where a cycle count was done and within a week it had to be redone. And the next week, etc.

I'm just fishing for thoughts about cycle counting. But - yes. Ultimately, I would think that cycle counting could and should be eliminated particularly when it becomes a continuous thing where people are dedicated to it day in day out.

Wishful thinking on my part? I don't think so.

 

[Marc]

A $30K Discrepancy

Talk about lack of control. 30k would be looked at as unacceptable here.

You run a good system. More along the lines of what I would expect. I've seen the $30K to $200K discrepancies before after an inventory - That with cycle counting being the every day job for 2 people. It is always hard for me to understand how a company can ignore inventory control systems as so many appear to do. And it's always a deficit - I've never seen a company come out with a + in front of the number. It's always "We can't find about $60K of inventory. I will say, thought this is anecdotal on my part, it typically seemed to be mostly in-process material.

In the company I'm thinking about here, we're talking a plant of about 600 people (I'll have to check that figure) - metal stamping.

 

[Marc]

RFID Technology

Wal-Mart sees future in RFID technology

https://www.nyjournalnews.com/newsroom/012204/d0122rfid.html

 

[Craig H.]

Re: RFID Technology

Wal-Mart sees future in RFID technology

I have been following this story as well, and, frankly, getting a little impatient waiting for it. We are at the beginning of the supply chain (as opposed to retail) and I can see where this technology would be a huge help to us.

Craig

 

[Marc]

Re: RFID Technology

I realize WalMart is essentially warehousing, but its something to be following. I'm surprised how many companies don't even datecode. But that's good for another thread.

 

[RosieA]

Wow, the RFID technology sounds very interesting (if not taken to the "This invades my privacy" extreme) Now when the count is off, we can find the pesky little critter without a lot of hunting!

As for Cycle Counting, without RFID, I view this as a business basic. In order to run an MRP system you need to have 95%+ inventory accuracy. You don't get to that level with a yearly inventory.

However, having said that, my present employer dropped Cycle Counting two years ago when it began to outsource manufacturing to other plants. They view it as a "nicety" that doesn't apply anymore. I find it very frustrating, because efficiency levels drop when there's no cycle counting.