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Evo-ERP and DBA Classic >> Items >> Cycle Counting
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Message started by PaulG on 12/16/08 at 15:08:31

Title: Cycle Counting
Post by PaulG on 12/16/08 at 15:08:31

I would like to get to the point where I can do weekly cycle counts on different ranges of parts in order to keep my inventory in check. I am familiar with the steps required to do a cycle count via the Physical Inventory Module. Unfortunately due to constantly moving parts, generating and processing paperwork and the general nature of being an active manufacturer it is very difficult to find the appropriate time to do these cycle counts.

Is there a simple way to do cycle counts without completely shutting down production? Anyone have experience doing smaller frequent cycle counts?

Title: Re: Cycle Counting
Post by GasGiant on 12/16/08 at 16:14:08

We do two types of cycle counts.

Based on an ABC analysis, we count the most valuable items, mostly finished goods, fairly often (a few part numbers each week), but we keep stock levels low on these, so it is not time consuming. We do not do standard cycle counts on B or C items.

For everything else we do "process control cycle counting", which means that we cycle count them at a critical point. For instance, when we reach the level of our safety stock or kanban reorder point, that is when we compare the system UOH to actual. The safety or split stock levels present a known quantity, so no actual counting needs to be done. We just look at UOH and WIP, and if we have a mismatch we take a closer look and adjust UOH. For other things, like shop stock, we do the count when we receive the item on a PO. We are already stocking the bin, the on hand amount is low, and it is easy to get a good count.

This system works very well. We have gone from annual counts that took hundreds of man-hours and showed a 10% variance, down to less than one-hundred hours of time that is hardly missed and which keeps at an audited 99% accuracy. We have decreased our inventory value, increased our turns and seldom have production holds due to stock outs. Happy auditors, happy workers, happy customers. And that makes the Board very happy. ;)

Title: Re: Cycle Counting
Post by PaulG on 12/17/08 at 14:28:25

Cool, very helpful! [smiley=thumbup.gif]

Title: Re: Cycle Counting
Post by cathyh on 12/22/08 at 12:42:38

So, Colin, do you ever use the physical Inventory module to do any of your counting? Sounds like you just use inventory adjustments.

Title: Re: Cycle Counting
Post by GasGiant on 12/22/08 at 13:46:07

We are trying to get away from it, but we do still use it at fiscal year end when we count all finished goods. We shouldn't have to, but we do anyway. It makes the accountants feel better. ::)