Understanding Errors
True or False, People who take a lot of pride in their work are less focused than those that are just there to get a paycheck.
False
What are the 2 main reasons we perform cycle counts?
1. Identifying process problems
2. Correcting quantity on hand
How do we measure accuracy?
Absolute dollar variance
True or False, When weighing very light items a larger sample size is required
True
What is the largest source of errors come from?
People
Of the two types of errors, which error are more difficult to control?
Lack of focus
How many stratifications are there for the ABC method?
4 - Methods
1. By frequency of transactions
2. By total quantity of units sold or consumed
3. By total cost of units sold or consumed
4. By the total cost of average on hand quantity
What would an extremely high net variance indicate?
Why is matching the technology to your processes so important?
It allows you to take full advantage of that technology for the betterment of the company.
Author of the book
David J. Piasecki
Employee training and process changes, such as changing the way a product is labeled, is what kind of error?
Lack of knowledge
When is the best time to perform a cycle count?
Before or after production
What determines whether a count is "good" or "bad"?
If the count is within a set tolerance
RFID stands for what?
Radio Frequency Identification
What does SKU stand for?
Stock Keeping Unit
"Stupid errors" or "dumb mistakes" refer to what type of error?
Lack of focus
What is the primary reason for conducting a blind count
Is net variance by dollar amount the best form of accuracy measurement?
False
What is 1 reason why people have a misconception that technology can fix all their problems?
Many reasons:
1 reasons: There expectations or dependency on technology can lead to sloppy or lazy operations.
Whos the better counter Chase or Kelia?
PLEASE.....If you have to ask you don't know!
There are two major types of errors?
1. Lack of Knowlegde
2. Lack of Focus
Besides the ABC method, name another method for cycle counting?
When demands exist
When allocated
Zero on hand
After production run
Before production run
etc (many others)
How many primary ways are there to measure accuracy?
5
1.Good count/bad count
2.Net variance by sublot
3. Absolute variance by sublot
4. Net variance by dollar amount net and absolute variance
5. Absolute variance by dollar
What does WMS stand for and what is BioFire WMS?
Warehouse Management System and Production Web
If there was a 10th Inventory Principle, what would it be? (hint: 2 words)
Go Cowboys