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Process Control Cycle Counting

Process control cycle counting is controversial in theory, but extremely effective and practical in practice. It has two prerequisites:

1. All parts are listed on the inventory records with specific quantities for each location. That is, the inventory records specifically show that there are 57 pieces of a part in location YA17C and 43 pieces of the same part number in location YC29D. This software feature is called "piece count by multiple location." Simply showing a total of 100 pieces is not adequate for this method. Additionally, showing a total of 100 pieces and listing all possible locations is also inad­equate. Note this requirement can be met if the entire quantity of each part number is, in fact, stored in only one location.

2. The cycle counter has, at his/her disposal, an inventory record listing of all quantities in all locations for all parts that will be counted. He/she knows the quantity of the part that should be in a location while he/she is counting it. That is, the cycle counter is not taking "blind counts."

Process control cycle counting samples parts on a three tiered basis: Geographical, Ease of counting, and Obvious errors.

Geographical. The cycle counting supervisor starts the process control cycle counting activity by assigning a cycle counter to a specific area. In a stockroom, it might be specific aisles, rack, or bin; while in point of use storage, it might be specific work areas or cells.

Ease of counting. Once the cycle counter enters the sample area, he/she verifies every part in every location, but counts only those parts that are easy to count. Typi­cally, these will be parts that are either low in quantity or packaged in such a manner that counting can be done in quick multiples. Only those parts that are physically counted are considered 'audited.' Those that have a large quantity and are not physically counted are compared to the inventory records to verify part identification, location and order of magnitude. That is, if a part appears to have a couple thousand physically located in the bin and the inventory records shows 2,279, the cycle counter would not bother to count it. This part would not be considered 'counted.' Nor would it be considered an accurate record. It would simply be "skipped."

Obvious error. If the part is misidentified or miss-located, or if the order of magnitude of the quantities physically located and on the record were obviously mismatched, that part must be included in the sample and counted. Addition­ally, if the part cannot be reconciled with a correct trans­action in process, it must be considered inaccurate. That is, if a part appears to have several thousand physically located in the bin and the inventory record shows 171 pieces, it would be treated as an "obvious error" and counted, regardless of how many pieces were physically on hand.

To be Continued