Introduction

Determining the optimum storage layout is not a job that starts by day 9 and ends on any specific day. Instead, this topic is one that starts by day 9 and never ends as process improvements are incorporated into the inventory flow model. Every time the cycle time is shortened or the product is redesigned, flow layout can be affected. Linkages to process improvement as well as availability of capital to rearrange new methods all contribute to the timing.

The main storage organization requirement in establishing accurate inventory location balances is to have inventory stored logically, neat and organized. This means locations (labeled designated storage areas) cannot be sized as vaguely as factory. This vague location label can create difficulties in finding inventory when it is needed for production requirements and makes cycle counting almost impossible as you attempt to confirm accuracy in test counts. The cycle count personnel in an environment with no location designations are never sure if they have counted the entire inventory. When does the cycle counter stop looking when he or she finds the quantity recorded in the perpetual records? That is what some misguided organizations do.

It is unacceptable in most applications to have factory-wide location labels. Items can get lost too easily and it is virtually impossible to know where everything is.

A couple of years ago, a manufacturing plant in France was ready to launch a new software system,...