Quotes About Inventory

No puedo quejarme, porque yo también debo haberle propinado vilezas semejantes. Una lástima. Que lo que quede de diez años de matrimonio sea sobre todo el inventario vergonzoso del daño que nos hicimos.

It's time for you to take stock of what you have, not of what you may have lost.

My 'Collaboration Wish List' is a mile long.

I don't do much more than organise other people's ideas and insights and thoughts, and sort of harvest them, and inventory them and present them.

I work hard, and managing an inventory-based business can be extremely stressful. The upside is that, as long as I get my job done, I can take time off pretty much any time I want.

Do you realize that the only way you can create excess inventories is by having excess manpower?" he says. I think about it. After a minute, I have to conclude he's right; machines don't set up and run themselves. People had to create the excess inventory.

It's not the material that concerns me," I say. "It's the capacity. You see, when the problem that caused the stoppage is overcome, the upstream resources not only have to supply the current consumption of the bottleneck, at the same time they have to rebuild the inventory.

The new orders have changed the balance. We took more orders, which by themselves didn't turn any resource into a new bottleneck, but they did drastically reduce the amount of spare capacity on the non-bottlenecks, and we didn't compensate with increased inventory in front of the bottleneck.

Through sales—not production. If you produce something, but don't sell it, it's not throughput.

No," he says. "Through sales— not production. If you produce something, but don't sell it, it's not throughput. Got it?

Inventory is all the money that the system has invested in purchasing things which it intends to sell." I

Operational expense," he says. "Operational expense is all the money the system spends in order to turn inventory into throughput.

Check your numbers if you'd like," says Jonah. "But if your inventories haven't gone down . . . and your employee expense was not reduced . . . and if your company isn't selling more products—which obviously it can't, if you're not shipping more of them—then you can't tell me these robots increased your plant's productivity.

Flow means that inventories in the operation are moving. When inventory is not moving, inventory accumulates. Accumulation of inventory takes up space. Therefore, an intuitive way to achieve better flow is to limit the space allowed for inventory to accumulate. To achieve better flow, Ford limited the space allotted for work-in-process between each two work centers.

Bottlenecks temporarily limit throughput. Maybe your plant is proof of that. But they have little impact upon inventory." "It's completely the opposite, Hilton," I say. "Bottlenecks govern both throughput and inventory. And I'll tell you what my plant really has shown: it's proved our performance measurements are wrong.

Interesting, isn't it, that each one of those definitions contains the word money," he says. "Throughput is the money coming in. Inventory is the money currently inside the system. And operational expense is the money we have to pay out to make throughput happen. One measurement for the incoming money, one for the money still stuck inside, and one for the money going out.

But how do we know the value of our finished goods?" she asks. "First of all, the market determines the value of the product," says Lou. "And in order for the corporation to make money, the value of the product—and the price we're charging—has to be greater than the combination of the investment in inventory and the total operational expense per unit of what we sell.

Maybe I should start with a question," he says. "Do you agree that inventory is a liability?" "Of course, everybody knows that. And even if we didn't know it, the last few months have shown to what extent inventory is a liability.

Any money we've lost is operational expense; any investment that we can sell is inventory.

If you produce something, but don't sell it, it's not throughput

Pero la realidad sigue siendo que estamos condicionados a acumular stock. Todas y cada una de nuestras tiendas están hasta la coronilla de existencias. Si nos dan más espacio, les aseguro que también lo llenamos.

Inventory is all the money that the system has invested in purchasing things which it intends to sell.

That's how Jonah knew. He was using the measurements in the crude form of simple questions to see if his hunch about the robots was correct: did we sell any more products (i.e., did our throughput go up?); did we lay off anybody (did our operational expense go down?); and the last, exactly what he said: did our inventories go down?

If we cut our batch sizes in half, then I guess that at any one time we'd have half the work-in-process on the floor. I guess that means we'd only need half the investment in work-in-process to keep the plant working. If we could work it out with our vendors, we could conceivably cut all our inventories in half, and by cutting our inventories in half, we reduce the amount of cash tied up at any one time, which eases the pressure on cash flow.