Cycle stock is the average amount of inventory a business needs to meet customer demand. The stock will generally deplete gradually as a business or organization receives orders from customers and replenish according to a cycle as suppliers provide the necessary orders.
In both lean and six sigma it is important to understand all aspects of waste, including inventory. One form of inventory is anticipation inventory. Anticipation inventory is built according to "anticipated" or some future demand. It is additional inventory that is created above and beyond the actual demand of customers according to forecasts, projections or trends. Some examples of anticipation inventory might be:
Reference: Apics Dictionary 14'th edition.
Total quality management (TQM) consists of organization-wide efforts to install and make permanent a climate in which an organization continuously improves its ability to deliver high-quality products and services to customers. While there is no widely agreed-upon approach, TQM efforts typically draw heavily on the previously developed tools and techniques of quality control.
Reference: Wikipedia - Total Quality Management
Vendor Managed Inventory programs are a powerful way to leverage an organization's strengths and focus on your core competencies. Vendor Managed Inventory places the responsibility of selected services and or items on a chosen supplier. In most cases the supplier will handle all agreed upon aspects, Which would include:
The scatter diagram graphs pairs of numerical data, with one variable on each axis, to look for a relationship between them. If the variables are correlated, the points will fall along a line or curve. The better the correlation, the tighter the points will hug the line.
Reference: ASQ - Scatter Diagram
Quality Control is a system of verification and maintenance that is used to meet a desired level of control/quality in an existing product, service or process. Optimum control is often achieved through:
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