Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order · Module 11 · Inventory Management
Inventory as a controlled asset
Lesson 108 of 188 · 2 min
Here is the framing that should change how you configure everything in this module. Inventory is a balance sheet number. Every transaction is an accounting entry. The warehouse is not a filing cabinet. It is a subledger with a forklift. What that implies, and each of these is a lesson here: transactions need reasons. Adjustments need control. Counts need discipline. And the whole thing must reconcile to the general ledger every month. The accuracy problem, with a number on it. Inventory accuracy below about ninety-five per cent makes planning unreliable and costing meaningless. Most clients think they are at ninety-eight and are at eighty-five. That gap is not dishonesty: nobody has measured it recently, the last count was a long time ago, and the number people quote is the number they hoped for. Where inaccuracy comes from. Unrecorded movements. Backflush errors. Wrong units of measure. Receiving into the wrong place.…
The full lesson is part of the course
The video, the complete written lesson and the module quiz are included in Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order, with a certificate on completion and a fourteen-day refund window.