Root Cause Analysis and Corrective Action Program for Inventory Inaccuracies

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bowanna03

#1
I am reposnsible for reporting out and maintaining our companies inventory record accuarcy and cycle counting programs. I would like to start to build a robust Root Cause Analysis and Corrective action program for all of our record in-accuracies. Can anyone help with the intial set up or thoughts? Thanks for the help to all!!!
 
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qusys

Trusted Information Resource
#3
Re: Implementing a Root Cause Analysis and Corrective Action Program

I am reposnsible for reporting out and maintaining our companies inventory record accuarcy and cycle counting programs. I would like to start to build a robust Root Cause Analysis and Corrective action program for all of our record in-accuracies. Can anyone help with the intial set up or thoughts? Thanks for the help to all!!!
You could use quality methods to address the most probable root cause, such as 5 Why's, brainstorming, Fishbone diagram, problem solving techniques .
The most important aspect to take care is multidisciplinary approach , working in team the all stakeholders and involved parts of the problem to be faced.:bigwave:
 
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bowanna03

#4
Thank you for the feedback and thoughts. I am going to look into creating a RCA team that will investigate all of the in-accuracies and meet when issues arise. We as a team will assign immediate corrective actions and a proposed action plan (PAP). I would love feedback if possible.
 

somashekar

Staff member
Admin
#5
for all of our record in-accuracies.
... ?
First let us understand the problem description.
companies inventory record accuracy and cycle counting programs.
What does this consist of ? What activities ? What type of components in the inventory ? What counting methods ? What is desired ? A 100% accurate record of even the C class component that are stocked in tens of thousands ?
We must strike a good balance between efficiency and effectiveness.
I wish you detail your companies inventory record accuracy and cycle counting programs, for our better understanding to respond back.
 
B

bowanna03

#6
I have two metrics to which I am measured upon. 1. Cycle Count Accuarcy, we run a daily cycle count with A,B, and C classification parts.2. Inventory Record Accuracy. As a team we are doing great job at finding our problems and not having to write off material but we are not doing a good job of preventing the problems from re-occuring. Record Accuarcy will tell us that our records don't match our locations then we have an issue that could lead up to a cycle count write off in the future.
 

somashekar

Staff member
Admin
#7
I have two metrics to which I am measured upon. 1. Cycle Count Accuarcy, we run a daily cycle count with A,B, and C classification parts.2. Inventory Record Accuracy. As a team we are doing great job at finding our problems and not having to write off material but we are not doing a good job of preventing the problems from re-occuring. Record Accuarcy will tell us that our records don't match our locations then we have an issue that could lead up to a cycle count write off in the future.
I have a question ...
Do you count to a fair accuracy all the parts that comes in before moving them to your inventory, or you go by the package label count, that the supplier provides ?
This accuracy is always against your system vs the various supplier system.
How has been the various suppliers count ? You have some inputs on these. Were there any CA on suppliers for want of inaccurate count in supplies ?
 
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bowanna03

#8
Everything including weigh counted items are hand counted at time of receiving accepting the material. If there ia an issue with a count a secound count takes place to verify that there is a discrepancy. Then the vendor is notified of the error. Our Quality team hold the vendors accountable for any errors wheteher it be documentation or incorrect quantities.
 

RoxaneB

Change Agent and Data Storyteller
Super Moderator
#9
Depending on your inventory count accuracy level, might I suggest that you not implement root cause analysis for every occurrence of a discrepancy? In a previous position, we set up triggers for RCA on inventory count issues with criteria including:
  • quantity (i.e., % variance)
  • value of item(s) (i.e., $)
  • criticality of item(s)
 
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