ffirs.qxd 6/22/07 1:48 PM Page v I N V E N T O R Y RECORD ACCURACY Unleashing the Power of Cycle Counting 2nd Edition ROGER B. BROOKS LARRY W. WILSON John Wiley & Sons, Inc. ffirs.qxd 6/22/07 1:48 PM Page ii ffirs.qxd 6/22/07 1:48 PM Page i Praise for Inventory Record Accuracy, 2nd Edition “This updated version of Inventory Record Accuracypreserved its humorous and easy-to-read style. Supply chain practitioners, in traditional or lean manufacturing, will find it a helpful guide. Cleverly outlined, the rigorous yet simple inventorying process for both on-hand and on-order inventory provides accuracy levels required for real-time data systems.” —Maria Teodorovic, Quality Systems Manager, Weyerhaeuser Corporation “Inventory Record Accuracy is truly a practitioner’s guide. The book’s collection of anecdotes provides real-life insight into the potential challenges of achieving IRA… and the combination of an easy-to-read text and simple drawings make this book an easy road map to follow in the proven path to higher inventory record accuracy.” —John Dietz, Director, Manufacturing Resource Planning, Lockheed Martin Space Systems “Roger & Larry are the experts on inventory record accuracy. Inventory Record Accuracy goes right to the core of the issues without a lot of soft-soaping. Every materials manager, stock- room manager and cycle counting supervisor should have a copy within arm’s reach.” —Adrian R. Barrett, 6 Sigma Master Black Belt, Caterpillar, Inc. “Excellent coverage of a fundamentally important topic. By far, the best book on the subject I’ve ever read. The three phase approach to inventory record accuracy should be required read- ing for all manufacturing managers.” —Edward W. Davis, Professor of Business Administration, The Darden School, University of Virginia ffirs.qxd 6/22/07 1:48 PM Page ii ffirs.qxd 6/22/07 1:48 PM Page iii I N V E N T O RY RECORD ACCURACY ffirs.qxd 6/22/07 1:48 PM Page iv ffirs.qxd 6/22/07 1:48 PM Page v I N V E N T O R Y RECORD ACCURACY Unleashing the Power of Cycle Counting 2nd Edition ROGER B. BROOKS LARRY W. WILSON John Wiley & Sons, Inc. ffirs.qxd 6/22/07 1:48 PM Page vi Copyright ©2007 by Roger B. Brooks and Larry W. Wilson. All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada Wiley Bicentennial Logo: Richard J. 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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at www.wiley.com. Library of Congress Cataloging-in-Publication Data: Brooks, Roger B. Inventory record accuracy : unleashing the power of cycle counting / Roger B. Brooks, Larry W. Wilson.—2nd ed. p. cm. Includes index. ISBN 978-0-470-00860-7 (cloth : alk. paper) 1. Inventories—Accounting. 2. Inventory control. 3. Business records—Management. I. Wilson, Larry W. (Larry Wayne), 1944- II. Title. HF5681.S8B76 2007 658.7(cid:1)87—dc22 2007003313 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 fbetw.qxd 6/22/07 1:52 PM Page vii To the women of my life, you wonderful people who have made me old, fat, and grey before my time. May you always remain as fastidious and intriguing in life as you are in my memory. Linda, Louise, Barbara, Charlie as and HeeBee GeeBee, I love you all. RBB Portland, Oregon This book is dedicated to my family. First and foremost, to my wife of 40 years, Beverly. Without her loving support, honest critiques, and sometimes not-so-gentle nudges, this book would not have become a reality. I am convinced it is her advice and counsel that are at the root of my success. Second, to my adult children and their spouses, for they have provided me with the joy of five grandchildren, which has enriched my life and kept me young at heart. LWW West Linn, Oregon fbetw.qxd 6/22/07 1:52 PM Page viii