Inventory management is knowing what you have on hand, where it is used within the process, and how many finished products it will result it. (Barcodes, Inc. 2012) In order to balance inventory, you have to pay close attention to incoming and outgoing supplies. Another factor in inventory management is knowing the turnaround time from start to finish. (Barcodes, Inc. 2012)
In order to effectively manage your inventory, communication is vital. This is an important component due to knowing how many orders are coming in and what your crew is capable of producing on any given shift. In some situations, this requires calculations based on individual employees. An example that comes to mind is a place I worked years ago that built the internal boards for motorhomes. Each station had specific pieces they were required to add and it worked like an assembly line, however it wasn't automated. Some people were faster at assembling the board than others, so from an inventory perspective the number of completed pieces varied. This can be said for many different assembly processes and it requires the inventory to be managed by a person who understands that flow.
In order to reduce inventory without negatively affecting customer service, is to know how long it takes you supplies to arrive and the time frame for which it is necessary to submit an order. If this can be managed by someone who understands the needs of the organization and the capabilities of the employees, reducing inventory won't cause delays or result in not having enough supplies needed to provide a finished quality product.
I think that's where a lot of the problems come in, that companies experience. I would expect that we would see only seasoned, well-trained employees in a position of managing inventory due to its complexity. If someone with less than an optimal level of experience was placed into a position of inventory management, the lack of experience could easily stall production. There are many ...
Inventory management is knowing what you have on hand, where it is used within the process, and how many finished products it will result it