The Planning master-For industrial engineer
This site is all about planning in an organization. Material planning, production planning, KPI and lean
Material balancing is a great system to find “material leaks” where money goes to the drain whiteout anyone noticing it. It is similar to inventory counts that we do in warehouses but in this case we do not only count inventory but also the amount of inventory in WIP and we search for material leakages. This is a very easy to make system that help us save a lot of money.
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.