It is unlikely that you will be able to effectively stock all the material, components, and supplies one needs to do work at Point of Use. Nine times out of 10, floor space is the greatest challenge to managing material, components, and supplies at Point of Use (POU). So then which ones should be stocked at POU?
Top 9 Rules of Thumb:
POU Item locations
(i.e. Flow, mfging cells, work stations…)
• Cleanroom vs Non-Cleanroom
• Direct Labor
• Size of the Parts X Usage
• Item Packaging
• Item Minimum Order Quantity
Rule 7: Parent Child Relationships for POU Item Locations
If cumulative usage of an item < Minimum Order Qty then POU Locations must have Parent Child relationships to avoid excess inventory.
Rule 8: There are Several Replenishment Methods for
POU Item Locations
Each method has characteristics that Favors its use:
• MRP Planned Orders /Pos
Rule 9: There must be a replenishment plan for every Item at POU
This rule is akin to there must be a process for every part rule. No part can be stocked at POU without clear visual ques indicating the type of replenishment process (VMI, Kanban, MRP Planned orders/ POs) is at work to ensure item availability to work order requirements.
Want to know more? Contact Doug Markham at firstname.lastname@example.org.