Quick Review / 2nd Opinion. This is probably one of my most
attractive services. Whether you are undertaking an
inventory management or warehouse operations project internally, using
outside consultants, or equipment/technology vendors to develop the
project, a good 2nd opinion can be the difference between success and
failure. What I offer that is unique is the willingness to give
recommendations
based upon minimal information. Meaning, I will not force you into an
extensive and expensive operational evaluation if all you want is a quick
opinion. Obviously there is some risk here as the
accuracy and comprehensiveness of my recommendations will be limited by the
information available and the time dedicated to the analysis. However, since
this advice is primarily being used to either validate or invalidate
aspects of a project that presumably have already had extensive analysis
completed, or to point out some alternatives that may not have been
evaluated, I feel it is a very worthwhile service. In reality, the
majority of the recommendations made at the end of an extensive analysis
were probably identified very early in the process. The majority of the
time spent in analysis is to verify some of the early assumptions and to
resolve detailed recommendations that may not have been as obvious. This
doesn’t mean that there is no need for extensive analysis, only that if
someone already did extensive analysis and you are looking for someone
else to give a second opinion, you probably don’t want or need to pay them
to do the complete analysis over again. If the quick review agrees with the initial
conclusions you will have an added comfort level in moving forward, if
it points out a questionable area, you can then dedicate resources to
further analyzing that specific area. Whether you want me to spend a
couple of hours looking over a proposal or plan, or spend a couple of days
observing your operation and doing some quick data analysis, I am willing
to give you my opinion based upon the information I have been exposed to.
My offering of
this service is not a sneaky attempt to take business away from other
consultants or to pressure you into additional services. I consider
this a very valuable service that can help to point out flaws in methods,
plans, or processes; ineffectively or incorrectly applied technologies;
and incorrect or incomplete cost/benefit assumptions. It's simply a
cost-effective means to increase the success factor of your project.
Inventory
Management. Evaluate processes, systems, calculations, and inputs
related to determining when to order/produce, how much to order/produce,
and where the materials are needed. This includes analysis of
bills-of-materials, routings, and order policies for MRP systems; facility
relationships and order policies for DRP systems; lot sizing decisions
including quantity discount calculations; sourcing decisions, forecast
generation; forecast consumption; safety stock calculations. Assist in
determining best methods for handling special inventory situations such as
outside operations, vendor managed inventory, backflushing, scrap
reporting, non-stock materials, substitutions, excess and obsolete
inventory. Develop planning reports that allow planners to work more
efficiently. Train employees on inventory management concepts and use of
inventory management systems. Read My articles on
EOQ,
Safety Stock, Backflushing.
Inventory
Accuracy and Cycle Counting. Evaluation of accuracy through audits
and analysis of transactional
data. Evaluate processes and recommend and implement process
improvements. Develop plans for continuous improvement in inventory
accuracy. Define and implement cycle counting processes. Guide preparation
and execution of physical inventories. Evaluation of technologies such as
bar code scanners, portable RF terminals, voice systems, light directed
systems. Define and implement accuracy measurements and standards. Train
employees on accuracy and the methods and technologies used to improve
accuracy. Read my articles on Inventory
Accuracy and
Cycle Counting, and check out my book on inventory accuracy at
accuracybook.com.
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Warehouse Design. Work with clients to develop conceptual designs
for storage, staging, and material handling areas. A conceptual designed
is a scale drawing that defines flows, types of storage equipment, aisle
widths, work stations, etc. A well-designed warehouse ensures that you are
achieving the optimal balance of cost, productivity, and space utilization
while taking into account accuracy and safety. I’m a firm believer in
designing systems that take into account the unique operational needs of
each facility. Frequently, generic storage/material handling systems are
sold to companies that –while they may get the job done—don’t truly
optimize the operation. A custom solution doesn’t mean custom equipment,
but rather a unique combination of standard storage and material handling
equipment along with processes that are designed to meet the specific
requirements of the facility. A custom solution should not only save money
over time but may also be less expensive initially by ensuring the most
cost-effective equipment is designed into the plan. A conceptual design
does not include detailed engineering specifications, these would
generally be provided by the equipment supplier or an engineering firm
after the initial design phase is completed. Read my articles
Aisle Widths,
Order Picking,
Material
Handling. With continually shrinking lot sizes and order sizes,
warehouses and manufacturing plants have to focus more on movement and
less on long-term storage. Material handling is not just an equipment
decision, but also a process decision that takes into account the
functionality and costs of material handling equipment and manual handling
methods. Automation is often considered a goal of material handling
operations, however, choosing the most effective level of automation for
an operation requires balancing cost, flexibility, safety, and accuracy.
In some cases, no automation is the most effective level of automation.
Read my articles Lift Trucks,
Aisle Widths,
Order Picking,
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Process Improvement. Process improvement is a somewhat broad topic
and is at the core of all the services I provide. What I offer is
cross-functional operations knowledge that includes extensive knowledge of
inventory management, physical warehousing, and material handling, as well as information systems
set-up and transaction processing. By taking a multidimensional approach
to process improvement I work to ensure that recommendations take into
account customer service, productivity, quality, accuracy, safety,
flexibility, capacity, and financial objectives of the organization.
Examples of areas that I would evaluate would include shipping, receiving,
order picking, order packing, shipment manifesting, stocking, feeding
production, production reporting, replenishment, processing purchase
orders, production planning, cycle counting, transaction processing, information flows,
multi-plant processing, and off-site storage. Read my article on
Warehouse Optimization.
Procedure Documentation and Employee Training
Materials. Training employees
is inexpensive and will likely have the greatest return on investment of
anything you will do in your operation. During many years managing
warehouses and plant operations, it became very evident that when I
invested time into training there was a significant improvement in overall
operations. When I would get involved in other projects and allow training
to slip, I would soon see the negative impact. As a consultant, I am a big
proponent of employee education and provide services to assist clients in
this endeavor. Ideally, you should document your own procedures, however, I can provide everything from basic paper-based procedure
documentation to browser-based training materials than can include
graphics, photos, screen views, and illustrations of physical and system
flows. I do believe it is best that people within the organization actually conduct the training, therefore I do not offer training as a
service.
Productivity and Accuracy
Standards. I can help to define and implement productivity and
accuracy standards as well as develop systems to track and maintain these
standards. Standards for productivity and accuracy are unique to each
operation and require a detailed evaluation of the tasks as well as the
environment the task is being performed in. It is usually not
cost-effective to track productivity and accuracy for every process. Key
activities, especially those performed by several employees, are prime
candidates for putting in place measurement and standards for productivity
and accuracy.
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Data Analysis.
Data analysis would include analysis of bills of materials; routings; item
set-up; forecasts; demand; order quantities; safety stocks; order
profiles; item profiles; work-in-process; inventory transactions; on hand,
inbound, outbound, and allocated quantities; in-transit inventories and
multi-plant relationships. Data analysis takes large amounts of raw data
and converts it into meaningful data that can be used to make operational
decisions or troubleshoot processes. I will usually perform data analysis
using a combination of downloaded files that I can analyze off-site as
well as using whatever database, query, reporting tools you may have
available on your system. Tools I have used frequently include Microsoft
Access, Query 400, and Crystal reports. Read my article on
Custom Reporting
Financial analysis. Accurate cost/benefit analysis of equipment or
technology investments is critical in making sure you are making the best
equipment and technology decisions. As an independent consultant, I
provide unbiased analysis that assists clients in making these key
decisions. Inaccurate cost/benefit analysis’ are common, and whether the
cause is a simple mistake or an intentional bias doesn’t change the fact
that you may be making an investment assuming a two-year payback when you
will actually be getting a ten-year payback. The services I provide include
project-level or equipment cost analysis determining estimated return on
investment, cash flow impact, and profit impact. The value I provide
related to financial analysis is more related to my operations background
than to my accounting knowledge. My extensive experience in operations
provides insights related to costs, benefits, and drawbacks that are often
missed in these types of analysis, while my accounting knowledge is just
enough to put it all together into an effective financial analysis.
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Software Optimization. Software optimization is the process
of using knowledge of systems and operations to take advantage of current
technologies. First and foremost, I look to enhance operations through use
of technologies the client already owns. This means evaluating the
functionality of current systems and utilizing this functionality to
enhance current processes. I also may recommend minor modifications that
can provide greater functionality with minimal investment. Often times, an
inexpensive modification to a report, document, or program can provide
significant improvement in inventory management, productivity, or
accuracy. As information technology accounts for an ever growing portion
of operating expenses it becomes increasingly important to utilize
technologies—that you are already paying for—to their fullest. The types
of software I work on would include basic inventory management systems as
well as ERP (enterprise resource planning), MRP (manufacturing resource
planning), WMS (warehouse management systems), DRP (distribution
requirements planning) and any other systems that are used to manage
inventory or processes related to inventory.
Software Implementation. During the ERP boom of the 90’s, many
companies found out the hard way the importance of a well planned,
properly executed implementation. Problems related to implementations
usually are the result of lack of focus, lack of resources, lack of
knowledge/experience, inadequate process evaluation, inadequate testing,
and inadequate training. As Inventory Operations Consulting is just a
one-man firm, I don’t pretend to have the resources to provide full
implementation services for major software implementations in large
organization, I can, however, provide some guidance during the
implementation process. My combined knowledge of both
operations and systems can prove to be indispensable in ensuring the
software is set up to handle the specific needs of your operation. Since
starting my consulting company, I've determined that it is probably not
the best long-term solution to pay someone like me to come in and
learn the inner workings of your software system. I just work with far
too many different systems to be able to retain detailed knowledge of
any single system. My belief is that you should be the ones gaining a
detailed knowledge of your system and conducting much of the system
setup (though it doesn't hurt to have some assistance from your software
vendor). I can help to point key functionality that relates to
your processes and make suggestions related to setup and possible
problem areas as well as help guide you through testing. Read my articles on
Warehouse Management Systems
and Software Selection and Implementation
Software Selection. Although I offer some services related to the
software selection process, I do not offer Software Selection as a formal
service. I believe that the software selection process is critical and to
offer effective software selection services you really need to specialize
in software selection. More simply put, “if I can’t do it right, I’m not
going to do it.” The services I do offer related to software selection
would be related to identifying critical functionality requirements and
evaluating the functionality of specific software packages. While this may
sound like software selection, it’s actually only a portion of it. As an
example, if you were looking for a warehouse management system (WMS), I
could work with you to determine functionality that is critical to your
specific operation such as batch picking, task interleaving, or lot
control. You would then need to contact vendors, submit RFP’s, and narrow
down a list to just a few vendors. I could then look at these packages to
determine the software’s ability to meet these critical functionality
requirements. You would then need to make the final decision and negotiate
contracts. While my services only cover a portion of the selection
process, they can prove to be very valuable as companies often make
mistakes in software selection by overlooking a critical process or by
assuming that a specific package meets their needs just because the vendor
or the software documentation claims it has the required functionality. To
verify functionality you need to ask the right questions and possibly even
look at the underlying databases and test the programs to be certain it
meets your needs. Read my articles on
Warehouse Management Systems
and Software Selection and Implementation
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ADC Technologies. Automated data
capture technologies such as bar code scanners, portable terminals, voice
systems, and light directed systems
—if
properly applied—can
provide gains in both accuracy and productivity as well as providing
real-time access and updating of data. Unfortunately, the the high costs
often associated with these technologies sometimes prevent businesses from
utilizing them. The key to implementing cost effective ADC
systems is knowing what technologies are available and the amount of
integration required to implement them. Applying this knowledge to the
processes in your operation will help in developing the scope of the
project. Limiting the project to only those applications that have a high
benefit/cost ratio will allow you to apply these operational improvement
technologies within a reasonable budget. Read my article on
ADC
Safety
Consulting. Although I have written some articles on safety, I am not
a safety consultant and do not offer safety consulting as a formal
service. I also do not offer "Expert Witness" or similar services
(Lawyers, please stop calling me!) Since I have gained some knowledge of safety issues, I am
more than happy to point out safety issues during the course of performing
my other services, and can offer services related to lift truck operator
training and certification. Read my articles on
Fire Safety, Dock
Safety, and Lift Truck Safety.
Non-Local projects:
Update: I am no longer providing services
outside of Southeast Wisconsin and Northeast Illinois. There are some limitations to the
services I offer outside of the Southeast Wisconsin and Northeast
Illinois areas. Primarily I limit my services to those that can be
completed with minimal onsite work. My general plan for
conducting non-local projects would be to conduct as much analysis
as possible from my location by reviewing documentation, reports, or
raw data sent to me electronically or through the mail, and by
conducting Q&A sessions via phone or email. I prefer to limit
onsite work to one or two visits of two to three days each.
While a lot can be accomplished this way, it does make more
time-intensive services such as software implementations or
management of major projects unrealistic.
E-Consulting: First, I apologize
to everyone who—like me—has grown tired of businesses putting an
"E" in front of everything they sell, but it does kind of fit here.
I'm a very hands-on consultant, and not having physical access to an
operation greatly diminishes my ability to offer accurate and
comprehensive operations-related services. I can however offer
my expertise in data analysis, inventory management, and warehouse
operations to help guide you through a project or help resolve
certain types of problems. If you are taking on a project and
looking for a little guidance such as answering questions,
clarifying concepts, reviewing plans, reviewing costs and cost
justification, I am available to do so at my
office rate billed in half-hour increments.
Services I do NOT provide.
Although the scope of my services is fairly broad, there are services that
I do not offer. These include:
Software Selection
Safety
Consulting
Expert Witness
Hazmat
Engineering Services
Software Programming
Systems
Integration
Distribution Network Design
Equipment Installation
High-level Management Consulting.
I am not a
reseller of any equipment, software, or service.
As an
fully Independent Consultant, I do not maintain alliances
with or receive income** from software vendors or equipment suppliers.
I work strictly as a client advocate providing unbiased analysis and
recommendations
** I do
occasionally provide consulting services to software vendors and equipment
manufacturers/suppliers. These are purely consulting services. I do not
collect any fees (finder's fees, commissions, etc.) relating to promoting,
recommending, or reselling their products.
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