Handling design changes with use-as-is inventory disposition

[Mark Meer]

We're updating a product design and associated images in accompanying instructions. It is only a minor/aesthetic change, and as such we'd like to continue to use our current inventory until exhausted.

This presents some complications in terms of using up old inventory:

• We don't want to "mix-and-match" old and new designs with orders
• It's important that the version of instructions matches the version of product design

Question: how to handle? To use old inventory as-is, we'd have to devise some system to ensure that only units of a particular generation are shipped together, as well as ensure that printed instructions versions always matches the versions of device shipped. We'd have to somehow simultaneously maintain two versions of instructions and units in inventory. This could get complicated and prone to mistakes. Suggestions welcome.

Not certain if it might not just be easier (albeit economically odious) to just scrap all old inventory...

 

[indubioush]

ensure that only units of a particular generation are shipped together

Why is this important?

 

[Miner]

Quarantine the new product and new instructions until the old is used up. If you have an MRP system, block the new inventory, so it cannot be used. When you run out of old product, you will have to scrap the excess instructions (or vice versa).

This situation is a good argument for keeping minimal inventory, and not building the new until the old was used.

 

[Mark Meer]

Why is this important?

Simple aesthetics. The are several packaging configurations with different quantities. If a customer orders a quantity of, say, 5, all should be of the same generation (lest the customer wonder why some look slightly different than others...).

 

[Mark Meer]

Quarantine the new product and new instructions until the old is used up. If you have an MRP system, block the new inventory, so it cannot be used. When you run out of old product, you will have to scrap the excess instructions (or vice versa).
This situation is a good argument for keeping minimal inventory, and not building the new until the old was used.

Thanks @Miner , this was the original plan, but for an additional complication: there are multiple variations, and several packaging configurations.
For example, the product comes in 5 colours, and can be shipped in packs of 1, 5, 10 - packs can be either uniform colour or "variety".

This has led to a situation where there is a current shortage of units of a certain colour (these need to be re-ordered and re-stocked ASAP), but a fair-sized inventory of the other colours remaining. As such, new inventory of the new design needs to be admitted to cover any orders for that limited colour (or "variety pack" orders that include the colour) - but this would necessarily result in the problem described: is there a way segregate and still use the old stock without mixup with the new?

 

[indubioush]

This is not just a use-as is disposition. Use-as-is means you can continue processing the items according to normal procedure. You can't do that in this case. Options:

1. Planned deviation (can be done through your nonconforming product process).
2. Strategic implementation date for the change(s).
3. New specification/document numbers and separate DMR so both iterations can exist at the same time and will not be mixed up as they will be labeled with a different number.
4. Scrap the old inventory.

 

[John Predmore]

is there a way segregate and still use the old stock without mixup with the new?

The way that occurs to me is to create new part numbers for the new versions and the new instructions, and rely on your ERP to manage inventory and proper combinations of product and instructions. You save the expense of scrapping old inventory, at the expense of proliferation. One way to maintain control as you liquidate old inventory is to offer the old version to a limited handful of customers, maybe at a discount. The analogy is to the way booksellers discount the previous edition of textbooks, which are functionally adequate, but only 95% identical to the latest edition.