Do you know the current inventory turns measurement for your company? Do you have a goal for improving that performance? These are important questions for any company that has inventory.
All companies keep track of the value of inventory that they have in stock because it is an important part of the company’s financial status — usually one of the larger assets on the balance sheet. Total inventory value is not a useful measurement for operations, however. It needs context, and that’s what is provided by inventory turns.
Physical products can’t be produced digitally, but digital resources can and do support manufacturing in a big way. Although manufacturing has made use of computers for decades, ever more powerful systems, sophisticated software, the Internet, and the Industrial Internet of Things (IIoT) have expanded the digital world of manufacturing . . .
December is often a rather strange month in the life of the manufacturing plant. There may be some seasonal demand effects to deal with (lower actual demand and lower production objectives in many cases) and there are often schedule reductions to be accommodated due to holiday shut-downs and the policy in many companies of encouraging employees to use vacation time before the end of the year.