In operations, the belief in neat formulas often leads us to assumptions: more stock equates to increased security, while less stock results in a leaner, more efficient flow. However, reality often challenges these notions.
The Reality Check
I've encountered facilities with towering stockpiles where production halts regularly. Conversely, I've witnessed just-in-time systems so streamlined that a single delayed truck causes hours of downtime. The truth is clear:
- ➡ More inventory doesn't automatically ensure availability; it can mask underlying issues like inaccurate forecasts or unreliable suppliers.
- ➡ Similarly, reducing inventory doesn't always enhance agility; it may lead to bottlenecks and constant firefighting.
The Key: Focus on Processes
The key lies in focusing on processes over stock levels:
- Supplier reliability
- Maintenance efficiency
- Bill of Materials (BOM) accuracy
- Consistent scheduling
- Effective team communication
When processes are flawed, excess stock serves as a crutch or a burden. It's essential to:
- ✅ Address systemic issues first.
- ✅ Base material management on reality, not wishful thinking.
- ✅ Cultivate adaptability, not vulnerability.
Avoid fixating on extremes of "more" or "less." Instead, prioritize the pursuit of optimal flow.
💬 Share your experiences: How do you strike a balance between inventory and operational flow? What strategies have proven successful, and what lessons have you learned?
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