Objectives, Outcomes and Benefits
The course will look at how MRP manages and controls inventory and the tools available to the MRP users to affect the Inventory
It will provide an understanding of the key differences between Inventory Management, Planning and Control and the roles they play in the organization.
We will review the key inventory planning approaches of ABC and Batching Rules and show how to identify the key elements of stock Safety, Batch and Overage.
What the course covers:
Overview of Inventory Management Planning and control
- The difference between Inventory Management, Inventory Planning and Inventory Control
- How Inventory affects ROA and profit of the business
- Inventory Cash-flow implications
- Why zero inventory is an oxymoron
- Exercise – Inventory asset or liability
Inventory Planning techniques
- Why plan inventory
- Stock and WIP
- ABC, Runner, Repeater and Stranger, Criticality Matrix and K-Curve
- Developing improvement plans (Hoshin Kanri)
- Exercise – ABC / K-curve planning
Inventory Control – techniques and measurement
- Stock Control – Physical and book records
- Stock counting policies – Annual, ABC, Perpetual Inventory
- Stocktaking checklists and best practice
- Key Measurements
- Exercise – Stock-take plan / ABC grouping / reason code checklist
Inventory Management – using MRP to achieve inventory optimisation
- Why MRP fails to manage inventory well
- Relationship between MRP parameters and inventory
- MRP / Inventory KPI measurements
- Definitions of Overage, Surplus and Excess and key differences
- Exercise – Calculation of Overage, Excess and Surplus for sample parts
Who will benefit?
This course is designed for Inventory management professionals, Planning Managers responsible for Inventory Management and MRP Planners. It will provide a detailed understanding of basics for Inventory Management, Planning, and Control. It will equip the delegate with simple tools and techniques to be able to understand the business’s inventory.