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Let us imagine you have to reduce the inventory of tapes you need during your process.

Here the steps to follow:

Step 1)
How many tapes (on average) you need every week?

Step 2)
Set the space to contain maximum 2 weeks of tapes.

Step 3)
Create a Visual Management tool to understand the 2 weeks level (green) and 1 week level (red).

Step 4)
Determine who is the responsible and the accountable for replenish tapes on weekly bases.

Step 5)
Start by replenish the space with 2 weeks inventory and then every week refill the space and monitor the quantity ordered and its gap from the average.

Step 6)
Now you have a fixed inventory in the shop and a statistical data set to work on.

Step 7)
If the accountable is regular in his work, now the supplier could give tapes on weekly bases.

Step 8)
Set a minimum (i.e. 2 weeks) and maximum level (i.e. 4 weeks) in the warehouse.

Step 9)
Now you have fixed maximum inventory in the company for tapes.

Step 10)
Start again from point 1 halving the stock space and doubling the frequency of the replenishment.

Following these steps you will reduce your inventory in a consistent way for your company.

LeanLab Staff.

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