Measuring Supply Chain Forecast Accuracy

Measuring Supply Chain Forecast Accuracy is usually done with Mean Absolute Percent Error or MAPE, the average of percentage errors. But there are several other metrics to consider. Here’s an […]

Business Model Canvas

Remember how you felt when you first started drawing your first Value Stream Maps? Well that’s how I felt when I first got my hands on Business Model Generation by Alexander […]

Safety Stock – How To

Safety stock is an additional quantity held in inventory in order to reduce the risk that an item will be out of stock when a customer places an order. This […]

Material Classification Logic

Bruce asked “Do any of you have any standard material classification logic that you have used.  I’m working with a client to classify all of the parts they purchase.  In […]

Coefficient of Variation

A measure of the volatility or spread of a time series around the average, for example of customer orders, aka Demand Linearity, Process Linearity. Coefficient of Variation (Cv) is the […]

Demand Profile

Maslow’s hammer, or a golden hammer is an over-reliance on a familiar tool; as Abraham Maslow said in 1969 in A Psychology of Science, “It is tempting, if the only […]

ABC Analysis: how to

ABC Analysis is a common management approach for prioritizing, classifying, or categorizing inventory. Inventory classification is usually based on an items price or cost times it’s usage or consumption quantity. […]

Bullwhip Effect

The bullwhip effect is the result of uncertainty caused from distorted information flowing up and down the supply chain.  The bullwhip effect is caused by fluctuations in information supplied to […]

Time Value Chart

      Determine Total Cycle Time Determine Queue Times between steps Create Step segments proportional to the task times Place steps, queue’s along the line segment in the order […]

Overall Plant Effectiveness

The Eight Major Plant Losses Shutdown Production adjustment Equipment failure Process failure Normal production loss Abnormal production loss Quality defects Reprocessing