How Much Time Does It Take To Complete a Lean Transformation?

How Much Time Does It Take To Complete a Lean Transformation?

This article courtesy of theleanmag, a content partner of the Operational Excellence Society. Ah, so before you get started your first question is “when will we be done?” Seriously, that’s how you think? If it is then my advice is don’t even start. You obviously don’t understand what the term “lean” means so all you…

Should Safety Stock Include Demand Forecast Error?

Yes, I’m broaching a hot topic. This article is deliberately not exhaustive, leaving plenty of room for further discussion. My intent: to encourage constructive, informative conversation among my many LinkedIn supply-chain experts. I have done my best to ensure that I have supported all my assertions with facts, analysis and calculations. Here is my theme: Forecast-to-actual demand variation has no…

Safety-Stock Calculations Are Risky – Demand, Lead Time and Service Level

This is a big and touchy topic, I know. I intend only to begin a dialog, not present an exhaustive treatise. First, let me define what I mean by “safety stock,” or SS: Not the restrictive, MRP-specific adder to gross requirements, but the general concept of buffer inventory. SS, determined correctly and optimally, protects against random variations…

5 Keys to Establishing and Maintaining Optimal Target Inventory Levels

5 Keys to Establishing and Maintaining Optimal Target Inventory Levels

At a high level, a supply chain’s structure defines critical factors affecting optimal target inventory levels – factors such as replenishment lead time and variation, customer demand and variation, and replenishment frequency. Supply-chain structure is fundamental to optimal overall financial performance. Still, to achieve target service levels reliably with minimal inventory and expediting, we must…