Lean Assessment Tool

Why do the assessment of your inventory?
It is important for organizations to determine where they are in their lean journey. Even though lean is over arching and spreads across the corporation for process changes and improvements, one area where it has immediate impact on is how the organization manages its inventory. So Ultriva provides a self service tool to assess where you are with your inventory be it FG, WIP or RM. This lean assessment tool takes your historical information - six months or one year - and points where and what to improve. You can assess supply chain, distribution and WIP independently depending on your inventory pain point. If you are a large corporation with multiple plants worldwide, you can do assessment for each plant to determine where to focus first. The Module not only highlights problem areas but also showcases the potential savings.
What is the information required to do your assessment?
In order to assess the inventory after you sign up, click the CREATE PROJECT button in the main screen. You can download the sample data file with the filed descriptions to ensure that your IT provides the requisite data. The following information is required for the analysis. (Sample data files provide the same info)

Master Data File:
  • ItemNo ( Part number for FG SKU or WIP SKU or R/M SKU)
  • ItemDescription (Description of the Item -optional)
  • PriceUOM (Standard Cost used in MRP for each unit of measure)
  • OnHandInventory (Closing Stock in units)
  • SupplierName — (Vendor Name/Code —Manufacturing plant, upstream work center, external supplier)
  • OrderLeadTime (Should include supplier's lead time plus transit time)
  • Lot Size (Standard Lot Size in number of units in a box, palette or bin)
Transaction Data File:
  • ItemNo ( Part number for FG SKU or WIP SKU or R/M SKU)
  • TranDate (Date of the Transaction)
  • Qty — (Transaction Quantity — receipts or consumption)
  • Transaction Type (C for consumption and R for Receipts)
The minimum date range for the transaction should be 60 days. The maximum should be one year.
What is the format for this data?
Both these files should be provided in a tab delimited format with the first row being the column header for respective fields. To load your data fill in the project name and point to the directory where respective files are located. Click the Upload files button. The system will take you through a wizard that will help you to load the data and view the results
What the Lean Assessment Tool does?
Lean Assessment Tool uses a built in lean formula to do iterative processing of your data. It first maps out your consumption pattern over the date range you provided. It then takes your closing on-hand inventory and calculates the on-hand inventory at each of the previous 60 days (90 or 180 or 365 depending on the transaction provided). As it establishes this data it figures out the potential stock outs that could have happened during that period.
In the third step it uses lean methodology (Kanban or consumption driven replenishment) to calculate the recommended replenishment pattern.
As a last step it superimposes all three of them on a single graph to show the potential benefits for each part.
The Lean Assessment Tool also summarizes the analysis by calculating the overall savings, top 100 parts savings and supplier grouped savings.

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