How can you use Six Sigma to reduce inventory shrinkage and obsolescence?

Make sure you know exactly what you have in a product before ordering, never go by the number on computer, look, see what is on shelfs and back stock. Then order. Always move the older product to the front when stocking, outdated merchandise should never happen. When orders come in make sure you know exactly how many were delivered, matches order form. Inspect to make sure there isn't damaged if it is get it zeroed out of system, right then. Often if it is thrown in a bin it never gets put in the system as being removed from inventory. Always check for damaged and not received merchandise. This is crucial to make sure inventory is controlled.

In my experience the more investigations done around the journey of an action, tells the story of failure and success. Devils is always in the details, and when the target is to spot the misses and identify the main cause of any kind of loss, all loop holes has to be tested and ran through. The reason is always employees will try to find a way to twist the rules and bend the process to their benefit and thats human nature.Hence, detailed analysis of each step in the process reduces the risk of creating such loop holes and creates further protection to the end result oriented acts as long as it stays within the efficient boundaries , and avoid interruptions and unnecessary beaurocracies in corporates thats business revolve around inventory.

O texto descreve de forma eficiente o segundo passo do Seis Sigma, focando na análise detalhada do processo relacionado ao encolhimento e à obsolescência do estoque. Destaca a importância de mapear o fluxo de estoque, identificar os pontos críticos e encontrar oportunidades de melhoria. A menção a ferramentas como mapas de processo, mapas de fluxo de valor e fluxogramas evidencia a abordagem sistemática e visualmente orientada para compreender o processo em sua totalidade. Isso permite uma análise mais profunda, identificação de gargalos e áreas de otimização, fundamentais para aprimorar a eficiência e a eficácia do sistema.

Here at Dollar general we do counts called nones n tones. If you do them n keep track of it, n keep ur store recovered ur shrinkage and over stock should go down.

Utilize Six Sigma methodologies to comprehensively measure existing processes, employing statistical tools to analyze root causes and identify pivotal areas for improvement.

I think improving the process can be achieved by learning from experience and going towards gathering feedback from first hand employees who actually walks the walk, who can always give more insights on how the process can be more efficient, or at least identify certain areas of concern that can be relooked at from a user perspective. Sometimes being away reading reports is nit enough to figure out whats essentially wrong and find ways to fix it, since there are many factors that are linked to the inventory control process, there should always be a holistic kind of analysis with involvement of the first line employees to always try to come up with upgrades to how the process is monitored and tested for effectiveness.

Employee theft has always been an issue and I do not believe that will ever end. Make sure department heads keep areas organized and clean, it is obvious that it is an easier target for theft because the thieves think you don't know what you have, when disorderly. Always put away returns and items left at checkout in proper place and the person assigned should always organize the area they are returning items to. You usually know the thieves, they come in like clockwork, keep someone working close by and alert in house loss prevention, crucial to stay organized and fully staffed.

Execute targeted improvements based on the identified root causes. This may involve refining forecasting mechanisms, fortifying security measures, and optimizing order fulfillment processes.

Para aprimorar o processo, o terceiro passo do Seis Sigma envolve a implementação de soluções direcionadas às causas raiz do encolhimento e da obsolescência do estoque. Isso demanda a geração e avaliação de diversas soluções, priorizando aquelas mais viáveis, eficazes e sustentáveis. Ferramentas como brainstorming, benchmarking e testes piloto são empregadas para gerar e testar soluções, garantindo uma abordagem estruturada e eficiente na melhoria do processo.

Audits, spot cycle counts, and report validation will all assist in proving the process improvements are working. Ongoing post-change discussions with employees provide firsthand feedback. Keep accurate documentation and don't be afraid to tweak a process if needed.

A fase final do Seis Sigma, o controle do processo, é crucial para manter ganhos. Implementar procedimentos operacionais padrão pode reduzir falhas em até 25%, enquanto verificações de qualidade e auditorias de estoque podem diminuir perdas em até 30%. Ferramentas como gráficos de controle reduzem a variabilidade em até 20%, enquanto painéis e relatórios precisos diminuem erros operacionais em até 15%. Essas medidas não só mantêm os resultados, mas também sustentam melhorias contínuas.

Institute rigorous control measures to continually monitor and sustain the implemented improvements. This includes regular audits and the implementation of enhanced security protocols.

A robust control plan should be implemented to monitor inventory levels continuously. Regular performance reviews and audits ensured that the improvements were sustained over time. Teams shall establish defined trigger points to initiate corrective actions if inventory levels deviated from the target. As a result of these Six Sigma initiatives, companies should experiences a significant reduction in holding costs, improved cash flow, and enhanced overall operational efficiency. The more accurate forecasting and streamlined processes allows companies to maintain optimal inventory levels, meeting customer demand while minimizing excess stock risks.

1 Find problems and opportunities for improvement before implementing six sigma; 2 Define the team that will participate in the project; 3 Stipulate frequency of meetings to discuss the problem; 4 Map the process for implementing six sigma, 5 Define the indicator and evaluate how it is measured. Work to reduce the 7 wastes: Production Shutdown. Defect. Transport. Movement OverStock. Overproduction. Overprocessing.

I agree, it’s all a long chain that is made of its small links that makes it or breaks it. Today every step on the way is a building block for what is delivered to the end user whether it was a product or a service, and the more lean is the structure that resembles the line worked towards that end in mind, the more agile and resilient will the business be. Which will always result in being more adaptable to achieve the aspired results. And inventory control is in the core of all of it, hence the better management a business can perform on that level, the more reflection on the important elements in each business will be, starting from profits , all the way to the most valuable asset in any business , its customer.

One of the major issues in the same prospective, is to address forecasting issues, companies should implement more accurate demand forecasting models, incorporating real-time data and market trends. Production schedules are to be adjusted to match demand patterns more closely. And procurement process to be optimized, and better communication channels shall be established with suppliers to enable just-in-time deliveries.

Root cause analysis and corrective action together with KPI monitoring should always work together for continuous improvement. Process improvement, operation control /monitoring mechanism and quality training are all very important.

There are three key stakeholders in the six sigma methodology.These are customers,processes and employees.Without these three,it's impossible to successfully implement six sigma for inventory shrinkage and obsolescence. Customers input and information in defining quality standards that are applied to design, analyse and improve processes. Process.. Organization can make changes and improvements to always deliver quality to it's customers. Employees gets the work done They review and understand customer needs, translate it into quality standards, design processes to deliver quality.Employees need to be trained and motivated to deliver inventory shrinkage and obsolescence

Loss of money counts as shrinkage and that is a problem. Never allow anyone to share the same tells. When counting down the money always have a member of management assist , having a customer service manager on each shift helps cut down on that. I have had calls, while at home ,that $1500 is missing in cash. You know even and large numbers mean cashier, check cametas and have a meeting.

Hay que analizar la información hacer paretos del inventario números de parte valor revisar los parámetros dela sistema Lead times MOQ saltéis stock úso definir tu ABC de tu pareto analizar por familias proveedores número de parte , revisar el consumo al futuro esto para la obsolescencia si tenemos discrepancias o variaciones aplicar conteos ciclicos por ABC definir FIFO tal vez localizaciones fijas aplicar de ser posible KB dependiendo del análisis de SIGMA

At some point I had the opportunity to work with a client in the retail industry that had sufficiently well controlled loss prevention processes and in the flow of goods had well identified the key points that generated good results, but had a serious problem in the accuracy of shipments for the goods that were sent from the distribution center. In other words, it controlled the processes with an incomplete inventory and the effect of the losses impacted the gross margin directly. Once the pain point was identified, profits increased.

Inventory needs to be physically counted to match records on a regular basis. Warehouse & accounts team to sort out any differences if any. Prior to stocking verify the sales trend, unit cost, timeline etc avoid any white elephant