The document discusses the key factors (the 4 M's of manpower, machine, material, and measurement) for effectively managing an inventory system. It provides details on standardizing procedures, minimizing waste and movement, and measuring key metrics to monitor performance and continuously improve the system. The goal is to add value for customers through quality and timeliness while minimizing costs for the company.
The document discusses the key factors (the 4 M's of manpower, machine, material, and measurement) for effectively managing an inventory system. It provides details on standardizing procedures, minimizing waste and movement, and measuring key metrics to monitor performance and continuously improve the system. The goal is to add value for customers through quality and timeliness while minimizing costs for the company.
The document discusses the key factors (the 4 M's of manpower, machine, material, and measurement) for effectively managing an inventory system. It provides details on standardizing procedures, minimizing waste and movement, and measuring key metrics to monitor performance and continuously improve the system. The goal is to add value for customers through quality and timeliness while minimizing costs for the company.
The document discusses the key factors (the 4 M's of manpower, machine, material, and measurement) for effectively managing an inventory system. It provides details on standardizing procedures, minimizing waste and movement, and measuring key metrics to monitor performance and continuously improve the system. The goal is to add value for customers through quality and timeliness while minimizing costs for the company.
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The 4 M’s
Manpower Machine Material Measurement
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Who are we talking about?
Warehouse and beyond
○ Dismantling ○ Parts Gathering ○ Shipping/receiving ○ People who manage them
All must use the Inventory Management
System All must work independently Outcome driven Answer 3 Questions
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Order Tracker
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How they Add Value?
Understands that they are ultimately
responsible for the customers experience Quality ○ Damage ○ Clean Timeliness ○ Prepared and ready to go when promised
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IMS Specific Procedures
Procedures need to be specific to the system
Each Inventory Management System has screen specific ways to complete a process I need to be able to train and manage with my procedures Clearly states how much, how often and steps needed to complete
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Standardized Work Takt Time Cycle Time Crew Size Job Instruction Sheet Continuous Improvement
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Killers of Performance Waste Over Inventory Over production Over staffed Transportation Excess Movement of vehicles ○ Drained place in yard ○ Part sold goes to dismantling ○ Cuts goes to dismantling Excess Handling of parts
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Minimize Waste Eliminate Waste 1. Anything that does not add value to the customer 2. Anything that does not add value to the company – should be measured in dollars 3. Any step or feature of a process than can be improved
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Minimize Movement Eliminate Handling Vehicles Parts
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Manpower What skills How many How the position adds value to the customer and to the company Must be trained and performance observed
There is no such thing as “one and done”
when it comes to training.
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Movement Vehicles moved 3 times Vehicles stored sequentially Parts removed and stored according to Environment Sales Available storage Warehouse areas arranged so that high volume high dollar parts closest to shipping
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Machines From small tools to loaders From yard cars to fork lifts Computers and Printers Make sure that those who need them have them and they are kept in working order Make sure that there is uniformity across employees by position. If the “machine” can eliminate or prevent the addition of employee (s)
Information Where? Always in the same place Where the work is done
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Measurement What gets monitored and measured gets managed Better to Best – it’s a journey, not a destination Available from the IMS Employee Accessible Sales Credits Number of
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Measurements 1.2 vehicles a day per BAY Inspect and gather 4 parts per hour Shipping and Delivery Prep, wash, package & load – 8 parts per hour. Invoice all freight and delivered parts Produce the manifest Deliver Check in all returned parts Restock all returned parts
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Order Tracker
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Order Tracker Activity Report
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Managers? Operation/Production/Shipping Manager Trains new staff in: Standardized Work in Process Includes use of tools/equipment Inventory/Yard management system Spends up to 50% of their time training staff and improving processes. Trains and rewards staff for incremental improvements SWIP Customer Satisfaction Reduction in credits