Cycle Counting Variance Level

We look at both count and location accuracy. 100% for both is the goal, of
course. We accept 97%.

Phil Lukomski
Trace-A-Matic Corp

-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
Marty Kuphall
Sent: Friday, February 17, 2006 9:47 AM
To: vantage@yahoogroups. com
Subject: [Vantage] Cycle Counting Variance Level

Just curious-

For those of you doing cycle counting, what have you set as acceptable
variance levels?
Examples: 100% accurate with no variances?
100% with no variance greater than 2%?
95% with no variance greater than 10 pieces?

Thanks for your comments.


Marty Kuphall
Chief Financial Officer
Ultra Tool & Manufacturing, Inc.
W169 N5954 Ridgewood Drive
Menomonee Falls, WI 53051

Phone: 262-703-0455
Fax: 262-703-0468
Toll Free: 800-779-3566
marty.kuphall@...
www.ultratoolmfg.com

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Just curious-

For those of you doing cycle counting, what have you set as acceptable variance
levels?
Examples: 100% accurate with no variances?
100% with no variance greater than 2%?
95% with no variance greater than 10 pieces?

Thanks for your comments.


Marty Kuphall
Chief Financial Officer
Ultra Tool & Manufacturing, Inc.
W169 N5954 Ridgewood Drive
Menomonee Falls, WI 53051

Phone: 262-703-0455
Fax: 262-703-0468
Toll Free: 800-779-3566
marty.kuphall@...
www.ultratoolmfg.com

The information contained in this electronic message (email) and any
attachment(s) to it is/are intended for the exclusive use of the intended
addressee(s) and may contain information that is confidential and/or privileged
and exempt from disclosure under applicable law. If you are not the intended
recipient(s) and have received this communication in error, please do not
distribute it. Instead, please notify Ultra Tool & Manufacturing, Inc. at
1-800-779-3566 or by email at general@... and destroy all copies of
this message and any attachments. Thank you.
Oliver Wight, production and inventory management guru, use to describe
class A organizations should have 98% or better inventory accuracy. The
tolerances should be based on the size and storage method of the
materials. For instance, large items such as engines or items stored in
cell boxes should have no variance while small items that have to be
scale counted might be 2 or 3%. But it is difficult to set different
tolerances based on this so people frequently will use ABC (Pareto
analysis) classes with A items being 0 tolerance, B items 2% and maybe
setting the C items at 5%. Using 2% across the board is another
realistic compromise.

Note that with the push towards Business Excellence, the Oliver Wight
group is now pushing 99.5% or better inventory accuracy.

Hope this helps.

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Marty Kuphall
Sent: Friday, February 17, 2006 10:47 AM
To: vantage@yahoogroups. com
Subject: [Vantage] Cycle Counting Variance Level


Just curious-

For those of you doing cycle counting, what have you set as acceptable
variance
levels?
Examples: 100% accurate with no variances?
100% with no variance greater than 2%?
95% with no variance greater than 10 pieces?

Thanks for your comments.


Marty Kuphall
Chief Financial Officer
Ultra Tool & Manufacturing, Inc.
W169 N5954 Ridgewood Drive
Menomonee Falls, WI 53051

Phone: 262-703-0455
Fax: 262-703-0468
Toll Free: 800-779-3566
marty.kuphall@...
www.ultratoolmfg.com

The information contained in this electronic message (email) and any
attachment(s) to it is/are intended for the exclusive use of the
intended
addressee(s) and may contain information that is confidential and/or
privileged
and exempt from disclosure under applicable law. If you are not the
intended
recipient(s) and have received this communication in error, please do
not
distribute it. Instead, please notify Ultra Tool & Manufacturing, Inc.
at
1-800-779-3566 or by email at general@... and destroy all
copies of
this message and any attachments. Thank you.







Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must
have already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder
and Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto:
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