Description

This curriculum spans the design and execution of inventory optimization initiatives comparable to a multi-workshop operational transformation program, covering the technical, systemic, and cross-functional adjustments required to align inventory behavior with lean principles across supply networks.

Module 1: Foundations of Lean Inventory Systems

Selecting between pull-based and push-based inventory models based on demand variability and supply chain responsiveness.
Defining value stream boundaries to isolate inventory waste within discrete operational flows.
Mapping material and information flow to identify handoff delays that inflate buffer stocks.
Establishing takt time alignment across production stages to synchronize inventory replenishment.
Calculating customer demand rate using historical shipment data adjusted for seasonality and outliers.
Documenting current-state inventory levels by SKU, location, and turnover frequency to baseline performance.

Module 2: Demand Forecasting and Signal Accuracy

Choosing forecasting models (e.g., exponential smoothing, ARIMA) based on product lifecycle stage and data availability.
Integrating point-of-sale data with production planning systems to reduce forecast latency.
Adjusting forecast inputs for known promotions, supply disruptions, or plant shutdowns.
Implementing statistical safety stock calculations using forecast error and lead time variability.
Validating forecast accuracy monthly using MAPE and bias metrics per product family.
Establishing cross-functional S&OP meetings to reconcile sales assumptions with operational capacity.

Module 3: Kanban System Design and Deployment

Determining container size based on ergonomic handling limits and production batch constraints.
Calculating the number of kanban cards using average daily usage, replenishment lead time, and safety margin.
Choosing between single-card and dual-card systems based on supplier reliability and internal transfer frequency.
Designing physical vs. electronic kanban based on shop floor connectivity and workforce literacy.
Integrating kanban signals with ERP systems to prevent manual data entry errors.
Updating kanban parameters quarterly or after major process changes to maintain alignment.

Module 4: Supplier Integration and Replenishment Strategy

Negotiating supplier lead time reductions in exchange for volume commitments or VMI agreements.
Implementing vendor-managed inventory for low-criticality items with stable consumption.
Establishing consignment stock agreements to shift ownership risk while retaining material access.
Enforcing supplier performance scorecards that include on-time delivery and quality defect rates.
Designing milk-run logistics routes to consolidate deliveries and reduce inbound inventory spikes.
Requiring EDI integration from key suppliers to automate purchase order and ASN transmission.

Module 5: Inventory Classification and Stratification

Applying ABC analysis using annual consumption value, not unit count, to prioritize control efforts.
Adjusting classification thresholds annually or after product line changes.
Assigning distinct reorder policies to C-class items to minimize administrative overhead.
Using multi-attribute classification (e.g., ABC-XYZ) to account for both value and demand volatility.
Excluding strategic spare parts from standard classification due to low usage but high downtime cost.
Aligning cycle count frequency with classification: daily for A-items, quarterly for C-items.

Module 6: Waste Identification and Inventory Reduction Tactics

Conducting gemba walks to observe excess WIP at bottleneck workstations.
Quantifying obsolescence risk for slow-moving SKUs using aging reports and engineering change logs.
Reducing safety stock after stabilizing a process, verified by control chart analysis.
Implementing FIFO lanes with visual controls to prevent stockpiling and expired materials.
Disposing of non-recoverable inventory through salvage, recycling, or donation channels.
Challenging "just-in-case" ordering behaviors during procurement reviews using root cause analysis.

Module 7: Performance Measurement and Continuous Improvement

Tracking inventory turnover by value center and comparing against industry benchmarks.
Monitoring days of inventory on hand (DOH) to detect unintended stock accumulation.
Calculating carrying cost using weighted average cost of capital, storage, and obsolescence.
Using control charts to distinguish common cause vs. special cause variation in stock levels.
Conducting kaizen events focused on reducing changeover time to enable smaller batch sizes.
Updating standard work documents after inventory process improvements to sustain gains.

Module 8: Technology Integration and System Scalability

Selecting WMS functionality based on required features like lot tracking, putaway logic, and cycle counting.
Configuring min/max levels in ERP systems with alerts for out-of-bound conditions.
Validating data integrity between MES, WMS, and ERP during inventory transactions.
Implementing barcode or RFID scanning to reduce manual entry errors in stock movements.
Designing dashboard views for real-time visibility into stockouts and overstock conditions.
Planning system scalability to accommodate new warehouses, SKUs, or acquisition integrations.