This document outlines an effective inventory management system using various lean principles and techniques. It discusses implementing a kanban system using visual controls like color coding and location numbers to improve inventory tracking and turnover. The system aims to make nonconformities obvious and keep the process simple through principles of visibility, simplicity and awareness. It also notes using cycle counting, a delivery control board and database to monitor inventories. The goal is to introduce these mostly low-tech visual methods to enhance inventory accuracy and efficiency.

1. Effective Inventory
Management System
M.D. Haruhiko 'hiko' Matsumura
Harry Consulting Services Japan

2. Case 1
 Pre Kaizen

3. Case 2
 Pre Kaizen

4. Result
 Post Kaizen

5. Result
 KanBan System

6. Result
 Color Coding for FIFO

7. Result
 Monitoring inventories

8. Result
 Delivery Control Board

9. Result
 Cycle Counting

10. Result
 Database

11. Result
 Itemized list

12. Basic Ideas for material
control system
 Visual Control
 Not hi-tech but hi-touch
 Awareness of nonconformity
 Simplicity

13. Visual Control
 No Sari-Sari Store!
 No junk shop!
 Inexpensive way
 Location number
 KanBan
 Display label
 Delivery control board, etc.

14. Not hi-tech but hi-touch
 No computer system
 Genti-genbutsu implementation

15. Awareness of nonconformity
 Anybody can be aware of something
wrong
 Visible control system

16. Simplicity
 Incoming
 Storage
 Outgoing
 Inventory check
 Replenishing
 Ordering
 Delivery control

17. Sample Materials Flow
 Materials Flow
Plans Orders
+ (In) - (Out) Job order
W/H
Prod
Vendor FIFO Customer
KanBan
Japan
Agreement Delivery system

18. Harry Consulting Services Japan
 What do you do?
 Improving material control
 What is the material?
 Raw materials, direct parts, indirect parts, spare
parts, miscellaneous goods, etc.
 How to do?
 Introduce visual management methodology
 What is the effect?
 Accuracy of inventory, improve inventory turn
over, etc.

19. Harry Consulting Services Japan
 Objective
 Enhance your localization

20. Effective Inventory
Management System
Harry Consulting Services Japan
www.hcs-asia.com