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Contents

Cover

Title Page

Copyright

Dedication

Praise for Smart Inventory Solutions, Second Edition

Also by Phillip Slater

Index of Tables and Figures

Phillip Slater

Foreword to the Second Edition

Chapter 1 Introduction to Smart Inventory Solutions

Achieving True Inventory Optimization

Inventory: The Forgotten Investment

Inventory Process Optimization™

Management, Reduction, or Optimization?

Generating Lasting Results

Chapter 2 The Mechanics of Inventory Management

Simple not Simplistic

Materials or Inventory?

Relevant Terms and Expressions

What is the Purpose of Having Inventory?

Why Spares and Indirect Inventory Is Different

An Introduction to the Materials & Inventory Management Cycle

Comparison of Theoretical and Actual Inventory Management and Control

Determining the Re-Order Point (ROP)

Determining the Re-Order Quantity (ROQ)

A Word on Monte Carlo Simulation

Do You Hold Too Much Inventory? Check Your Stock Turn Ratio

Chapter 3 The Financial Impact of Inventory

Don’t Overcompensate

The Inventory Management Tension

Cash Is King

A Simple Model of Business Economics

The Four Financial Reports that You Absolutely Must Understand

How Much Cash Can You Generate?

Chapter 4 People and Processes

The People Factor

Adopting a Zero Inventory Mindset

The Influence of Process

Systems Thinking

The MIM Cycle in Detail

Chapter 5 Policies & Procedures

When is Critical Really Critical?

The Spares Stocking Policy

Chapter 6 Issues, Myths and a Few Home Truths

Why Inventory Reduction Often Fails

Cracking the Inventory Code

5 Myths of Inventory Reduction

Why You Might Hold More Inventory Than You Really Need

Chapter 7 The Spare Parts Storeroom

The Central Hub

Squirrel Stores & Why You Would Be Nuts to Keep Them

MRO and Engineering Spares: Lean, Mean or Somewhere In Between?

Is Your Storeroom a Pit Stop or a Supermarket?

Chapter 8 The 7 Actions for Inventory Reduction

The Bath Tub Principle

Hypothesis Driven Analysis

Double Loop Learning

Action #1: Have Someone Else Hold It and/or Pay For It

Action #2: Sell Excess and Obsolete Stock

Action #3: Eliminate Duplication

Action #4: Change the Factors That Drive Safety Stock

Action #5: Reduce Reorder Stock

Action #6: More Closely Match Delivery with Usage

Action #7: Reduce the Value of Items Held

Chapter 9 Inventory Process Optimization™

Beware Implicit Assumptions

The Inventory Process Optimization™ Method

Stream 1: The Individual Parts Review

• The Inventory Cash Release® Process

• Getting the Focus Right

• When to Apply Which Action

• The Step-By-Step Process

• Example Application of the ICR® Process

• Reviewing the Long Tail

Stream 2: The Management Process Review

Chapter 10 Execution: Taking Action to Achieve Results

Selecting Your Inventory Review Champion

The Role of Your Inventory Review Champion

Who to Involve in an Inventory Review Program

The Three Stages of an Inventory Process Optimization™ Program

Measuring Your Progress

Integrating New Inventory Items

Integrating Inventory Process Optimization™ with Inventory Management

Chapter 11 Case Studies

Case Study 1: Establishing a Materials and Inventory Management System

Case Study 2: Applying the Inventory Process Optimization™ Method

Chapter 12 Where To From Here?

Bibliography

Appendix A: Materials and Inventory Management Glossary

Appendix B: Data Collection Questions

Index

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