Supply Chain Logistics - The Bee Hive

The Bee Hive

Ramlee Ibrahim’s Knowledge Bank

I have moved.

January 06, 2009 By: Khairul Neezam Category: SCM

I have moved my blog over to Kindly take note to post questions and comments over there instead.

Thank you.

Inventory Metrics - Inventory Turns Or Days Supply?

November 27, 2008 By: Ramlee Ibrahim Category: Inventory Management

The motive for inventory performance metrics like inventory turnover and inventory days of supply is to know how much inventory is on hand and to help us decide if that amount is right for our business. That information is useful for finance so that it can reflect its current assets picture. To operations, it indicates the ability to cover production requirements and/or customer orders. But which is the better measure?

My Blog has been moved to…

November 24, 2008 By: Ramlee Ibrahim Category: SCM

MRP Does Work … A Real Story

November 07, 2008 By: Ramlee Ibrahim Category: Inventory Management

Several years ago, an electronics original equipment manufacturer company hired me to salvage its investment in an MRP system. The company had recently been awarded a large contract on the condition it follow an aggressive timetable for the product launch.

After the annual shutdown, a group of concerned employees was waiting for me in my office. The buyer informed me that MRP failed to generate the requirements for the new product and suggested MRP “may work for some products but just doesn’t work for ours.” One of the planners also explained that MRP had generated requirements for old part numbers but the newly created part numbers were missing from the MRP run. 

Cycle Counting - What Really Counts?

October 28, 2008 By: Ramlee Ibrahim Category: Inventory Management, Warehouse Management

Traditional measures of accuracy can be a double-edged sword. While their objective is to confirm cost or inventory accuracy, these methods often serve as a disincentive by inadvertently discouraging an all-out effort to find and eliminate the real root of the problem. When too many inaccuracies are found, the company’s calculated inventory accuracy drops, and this reflects poorly on the worker or workers responsible.

In this instance, the manufacturer needs to understand that inventory accuracy is only an indicator of performance and is not a true measure of the actual process. By definition, performance measures track a process, but something must have been performed in order to have a performance measure. Cycle counting is a process and has a performance measure related to its effectiveness.

Traditionally, companies judge a cycle-counting process based upon a measure of inventory accuracy. The more the process confirms the accuracy of the company’s inventory, the higher the process’ measure of effectiveness - or so it would seem.

Consultants - Know Them and Survive!

June 12, 2008 By: Ramlee Ibrahim Category: SCM

One of the joys of being in the world of operations management is dealing with consultants. There are two major categories: the software consultant and the operations/strategy consultant. They are different animals and must be handled with care and wisdom, but you can survive the experience and even prosper.

SCOR Version 9.0 Launched

May 16, 2008 By: Ramlee Ibrahim Category: SCM, SCOR Talk

The Supply-Chain Council (SCC), a global not-for-profit standards organization, announced the release of version 9.0 of its Supply-Chain Operations Reference (SCOR®) Model. This major update, formally launched at SCC’s Supply-Chain WorldConference & Expo, includes expanded risk management capabilities, as well as new features to guide companies’ environmental sustainability efforts—the latter of which incorporate and expand the capabilities of GreenSCOR, formerly a standalone variationof the SCOR model. 

Can SCOR, Lean and Six Sigma Co-Exist?

May 16, 2008 By: Ramlee Ibrahim Category: SCM, SCOR Talk

This question have been asked by many practitioners from all three schools. Before we deep dive into this discussion, a few introductions into each of the above methods is in order for the benefit of those less familiar with either or all of those.

Old Habits Die Hard … A Lesson in Progress On The Production Floor

May 12, 2008 By: Ramlee Ibrahim Category: Operations Management

It may surprise some of you that not all manufacturing managers value excellent customer service, low inventory and fast throughput. What we have come to know as the “bad old days” is still embraced like a comfortable security blanket in some companies.

Optimize Your Finished Goods Inventory By Using Proper Analytics

May 06, 2008 By: Ramlee Ibrahim Category: SCM, production & Operations

Pundits will continue to predict economic recovery or decline. But the only certainty is that economic conditions will change in the future (for better or worse). How manufacturers react to such changes can have a significant impact on the service levels provided to their customers and the amount of working capital they have tied up in finished goods inventories (FGI). Periodic and practical reviews of FGI levels, based on item performance can yield significant benefits to manufacturers and their customers. Given the impact this can have on customer service levels and a company's balance sheet, it goes beyond being simply an operational best practice and deserves the attention of senior management.