Cycle counting

We have been using vantage V4 for just over a year and
have been instructed by our parent company in the USA
to start performing cycle counts on a regular basis.
We have used the count entry feature to do an annual
stocktake without any problems, but I cannot see an
easy method for regular counting unless we try to
group all our 10,000+ parts into a,b,c classes which
would make the quantities too large to count
successfully. Can anyone help me?

many thanks
Mike Kerwin
Cooper Crouse-Hinds(UK)Ltd

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Mike,

I haven't used cycle counting in Vantage, but I have extensive experience
with cycle counting in other products. As far as I have seen, cycle
counting is always tied into ABC analysis. The ABC analysis is used to
determine the frequency for counting each part. You should have control
over how many parts (by percentage) end up in each category. Then, you
should also have control over the frequency of counting each category.

What I have done with large systems (many part numbers), is configure the
analysis so that only a very small percentage of items appear in the A
category (maybe the top 5 percent, or less). Configure it so that a larger,
but still small percentage of items should appear in the B category (maybe
the next 10 or 15 percent). The rest will be in the C category. Then set
up the frequency so that you count the A items twice a year, the B items
once a year, and the C items once every two or three years. You can play
with the configuration until you find a good fit for your process, one that
doesn't overwhelm the stockroom(s).

Also, one thing that you may not realize, is that the ABC analysis is
usually based on the dollar value usage of the inventory, not the quantity
usage. This can cause serious issues with the ABC analysis and the results
of it, if your costs are not maintained properly. If you use standard cost,
you need to make sure that someone is maintaining them. Otherwise, you may
be counting the wrong parts. With average, or last cost, you may find that
some items don't have a value, but are actually valuable. These will be in
the C category, even though you may want them in A. Anyway, you get the
idea. I just wanted to point out that your cost method and procedures have
an impact on your cycle counting.

Good luck...B

-----Original Message-----
From: kerwin mike [mailto:sh05832@...]
Sent: Thursday, March 08, 2001 3:51 AM
To: Vantage Group
Subject: [Vantage] Cycle counting


We have been using vantage V4 for just over a year and
have been instructed by our parent company in the USA
to start performing cycle counts on a regular basis.
We have used the count entry feature to do an annual
stocktake without any problems, but I cannot see an
easy method for regular counting unless we try to
group all our 10,000+ parts into a,b,c classes which
would make the quantities too large to count
successfully. Can anyone help me?

many thanks
Mike Kerwin
Cooper Crouse-Hinds(UK)Ltd

____________________________________________________________
Do You Yahoo!?
Get your free @... address at http://mail.yahoo.co.uk
or your free @... address at http://mail.yahoo.ie




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