Cycle counting in a JIT environment using V-A-T focusing

Abstract

Inventory cycle counting is considered a basic component of effective inventory management. With the Just-in-Time production management system, inventory is greatly reduced. Is there a role for cycle counting under JIT? Logical structures for any manufacturing process can be determined by combining the product routeing with the bill of material. The identification of the logical structures is known as V-A-T analysis. By using the V-A-T analysis method, cycle counting can be focused to support the operations that are most critical to success under JIT. Three manufacturing plants are used to illustrate the process.