When something is said to be coupled, it would mean that the two items are connected and interdependent on one another.  In the case of processes and supply chains there can be both positives and negatives with regards to coupled inventory and decoupled inventory.  As you know, demand can fluctuate, shortages will occur, people call in sick and shipping routes are sometimes detoured.  There is a long list of issues that can disrupt both internal processes and supply chains.

​  Independent Demand is an item that generates demand all by itself.  In other words, it is not dependent or related to any other demand item. 

  Dependent demand is the demand that is directly related to or derived from the bill of materials structure for other items or end products which are independent demand.

​  MRO inventory stands for maintenance, repair, and operations inventory.  In general it is used to maintain or repair items that are used in operations.  This can include all the supplies an organization uses for its production processes that do not become a part of an end product or finished goods.

  Whether it’s materials or information, if the inventory is not there when a customer wants it, chances are they will go somewhere else to find it.  Next, revenue is lost and then it gets worse and worse.  For example if inventory is not available throughput is decreased, waste is introduced and supply chains slow down.  With that being said, many traditional manufacturers and service providers use a type of inventory known as Safety Stock to solve these sometimes catastrophic issues.  In this module we will introduce you to Safety Stock. 

See: Pipeline Inventory

  Work in progress or process refers to one form of inventory.  WIP as it is often referred to as, is the work that is in process or production at a stage that falls between raw material and finished product. 

  A push system is the production or performance of any item or activity performed at required times by a given schedule that has been planned in advance.  Many push systems are built mainly to forecast.  Push systems can also include issuing material or performing an activity based on a schedule rather than need.  Push systems create excess inventory which is one of the 8 forms of waste.  

  Lean is a continuous improvement strategy that a company embarks on to maximize customer value and minimize waste.  The term "Lean" was first used in the book The Machine That Changed the World by James Womack.  A lean organization focuses on providing complete value or Value added activities to their customers.  One of the ways that lean accomplishes this is through the complete and total elimination of any form of waste.  

  A huddle is an action by a team to strategize, support and motivate one another towards accomplishing or aligning objectives and goals.  Huddles are typically held before an activity takes place.  Huddles can be held in any area or department of an organization, they do not need specific rooms just a format to conduct the huddle.  The main difference between a huddle and a meeting is both how it is conducted and the amount of time the huddle takes compared to a meeting.  Huddles can be performed in under 7 minutes.

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  A raw material is any purchased, supplied or extracted item that will eventually be transformed via a manufacturing or transformative process.  The raw material or materials are generally converted into components or a finished product.  

  Finished goods are products or end items that are sold as a complete item or unit.  These items are commonly subject to a customer order, sales order or purchase order that is linked directly to a customer.  Finished goods and products are an extension of your inventory. They are materials or products that have reached a point in either the manufacturing or transformative process where they are available for consumption. You can calculate finished goods using a formula that will also help create an inventory ratio which determines the value of your goods for sale.  Finished goods inventory is generally considered a short term asset.  Short term assets are expected to sell in less than a year as opposed to long term assets which are typically investments that will be kept for longer than a year.  Let’s look at an example of finished goods.

  The 5 core principles of a Lean Organization were first written about in a book entitled:  Lean Thinking by James P. Womack and Daniel T. Jones.  The 5 core principles are widely accepted as a means implementing and establishing a lean organization.  The 5 core principles have been adapted from the 5 original principles that were defined by Dr. Womack and Daniel T. Jones:​​ 

  Warehousing, Transportation, Order fulfillment and Inventory Management and Optimization.  We’ve all heard these terms before.  But, did you know how tightly linked they are to a third-party logistics provider?  Many companies in today's day and age rely on logistics providers to help scale and enhance their business.  Companies like Amazon, Walmart and Grainger all use 3PL’s.  And, with the growth of e-commerce and the growing complexity of today's supply chains 3PL’s are becoming a must have for almost every organization.  So, what exactly is a 3PL?

  The easiest way to define overprocessing is doing more to a product than what the customer, specification or transformative process requires the first time through.  Overprocessing is sometimes referred to as inappropriate processing because it includes steps that are not needed, extra handling, duplication of activities and processes that are just not statistically capable of producing the desired results.

  Programs like six sigma, lean and total quality management are effective ways to manage continuous improvement strategies and create quality in an organization.  Over the years these fundamental strategies have proven to be drivers of success.  With this in mind, every organization needs quality at all levels of a business.  In today's global economy quality is a common desire.  Everyone wants it.  So, where did this desire for quality come from?

  Overproduction is one of the 8 major forms of waste.  It occurs when materials, services or information are created earlier or in excess of the needed demand.  Overproduction is oftentimes referred to as the deadliest form of waste because it directly causes and enlarges other forms of waste, while indirectly contributing to many others.

​  In Transit or Pipeline Inventory is Inventory that is in transit.  Typically the inventory that has left the shipping dock of the seller or supplier, but not yet reached the receiving dock of the buyer or customer.  Any inventory that is in the “pipeline” is inventory that is moving within the supply chain.

  The 8’th form of waste was identified and added to the other 7 forms of waste by Dr. Jim Womack in the book Lean Thinking.  This type of waste suggests that we go to a great effort in order to obtain well qualified and experienced employees that eventually end up working behind a desk from nine to five.  While the work that these individuals do on a daily basis is very important, it is guaranteed that almost every individual is capable of much more than what he or she does.  The waste of underutilized skills also applies to machine talent.  Too often we use the same systems and procedures because it is what we normally do and we rob those computers or machines of their full potential.  Like our computers and machines the same goes for our most important asset, people.

  A component could be a raw material, subassembly or a part.  However the identifying difference is that a component which could be a part, raw material or subassembly goes into a higher level assembly, item or part.

  The waste of motion or movement is any motion or movement by people and or machines that does not add or create value.  Motion waste is oftentimes confused with transportation waste, they are not the same.  The easiest way to identify the difference between the waste of motion and the waste of transportation is that transportation waste moves “stuff” or information and generally occurs between process steps and workstations rather than within them.  Motion waste on the other hand, directly relates to people and machines.

  The word investment is defined in one way as "the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value."  With this in mind, Inventory Investment is the total amount of money or capital that has been invested in every form of inventory.  

  This type of work activity does not meet the criteria of value added work, mainly because a customer is not willing to pay for the product, service, activity or information.  However, the product, service, activity or information although not considered value added is necessary to either protect the company or comply with regulatory requirements. 

  A subassembly is used to build an assembly.  A subassembly is not a component, it is an assembly that is used in a higher level of a bill of materials.

  Waiting is defined in one way as: "staying where one is or delaying until a particular time or something else happens".  In the case of the waste of waiting we can say it is any situation where a delay, idleness or a stop occurs.  There are generally three categories where waiting is related: