Consignment is a significant inventory planning method. The idea is that the customer is paying for the goods only when it is consumed (or sold).
It is an excellent system for the client but also for the supplier that saves a lot of waste in the supply chain.
How to make a consignment agreement and why.
Tag: Industrial engineering
Cycle time break down
Reducing cycle time is a very important advantage we can get in the market.
In order for us to reduce the cycle time, we got to understand what are the elements that the cycle time is made off.
In this post, we explore the way we can create a cycle time breakdown. We can then take every element and improve it.
Improving processes – removing NVA
Processes can be improved. First we need to map The activities to see which gives value and which not (NVA). In the following post we will start with example and on the next posts i will add the know how methodology
Material balancing – finding material leakage
In today’s organizations we have a lot of acquired items and raw materials. Although most organizations have well organized methods of the flow of material, it is very difficult to find material leakages. They have a direct effect on the bottom line since it is money spend on material that was not taken into consideration during the costing phase. In this post: how to find the leakages and how to reduce their unknown part.
ABC inventory planning
ABC model allow us to plan our inventory in a smart way. We refer to each item as part of a group. Some groups are important and we micro manage them and some not.
Production planning in a simple organization
How to plan the production in a simple organization. From batch size to batch priority and inventory policies.