Improving cycle counting with buffer time management

Abstract

This report provides a view of how inventory accuracy can be improved when Buffer Time Management principals is applied to Cycle Counting procedures. With no base module from which customer specific solutions can be designed from leads to brand new Cycle Counting modules being developed for each and every customer, this results in waste of time, money and other resources. The need to develop a module that would act as base module for future developments was identified and addressed. Different Cycle Counting methodologies were researched along with the key principles of Buffer Time Management. The research indicated that selecting the ABC categorization method of Cycle Counting will be the best choice when combined with the color coding and buffer principles of Buffer Time Management. Business and process blueprints where developed for several proposed solutions on which customer need verification was done to select the most promising proposed module. A prototype module was developed in Microsoft Excel with actual inventory records. Results from the implementation of the prototype module indicated that the module is able to schedule cycle counting stock takes and at the same time provide accurate and up to date schedule states and inventory levels. In conclusion, the implementation of this developed module will increase inventory accuracy, provide transparency to supervisors and management for business planning and will increase customer service and satisfaction.