Woodworking Business

You are not logged in. [ Login ] Why log in
(NOTE: Login is not required to post)

To inventory or not to inventory?

5/12/15       
KJ Member

Hey everyone,
I am wondering how many keep an inventory of finished goods on hand versus making things on an as ordered basis. I've read in articles dealing with lean not to keep a large inventory. Thanks.

KJ

5/12/15       #2: To inventory or not to inventory? ...
Pat Gilbert

Custom obviously not

Having a supply on hand is essential to good service. Having too much = BK

There is a furniture factory who is still in business today ( 10s of millions in sales) in So Cal who's main selling point is next day shipping so the retailer does not have to keep a big inventory..

Two major selling points are price and service, the latter requires smart thinking but not necessarily more expense.

5/12/15       #3: To inventory or not to inventory? ...
KJ Member

I know I'm going to feel like a moron after u find out but, BK???

5/12/15       #4: To inventory or not to inventory? ...
Pat Gilbert

bankrupt

5/12/15       #5: To inventory or not to inventory? ...
chipbored

As the lean way of thinking goes. Any work in progress laying dormant is money you can't invoice for and inefficient to stop/start work on.

We don't keep any inventory of produced items. All made to order.

We do however keep an "inventory" of pre finished parts that are guaranteed to be used in about 1 month.

An example is rips of melamine for cabinet rails and drawer backs. It's efficient to cut a whole bunch at once and speeds up production when kitchens are being cut, but we don't pre edge them because it is inefficient to edge them and take them back to the saw to be cut again and stacked with cabinet parts that are going to be edged anyway. If our cabinet depths were all the same we would do the same thing but they always vary so I just wait for the order to come in and cut them then.

Hope that helps.

Maybe it would work for you to keep some sort of inventory if you are guaranteed to sell it and experience lulls in production that could be filled by making the inventory items.

5/12/15       #6: To inventory or not to inventory? ...
KJ Member

Gottcha Pat.

Thanks chipbored for giving me a different way to look at it.

5/12/15       #7: To inventory or not to inventory? ...
Pat Gilbert

To me finished goods would be something a customer would actually pay for?

5/13/15       #8: To inventory or not to inventory? ...
KJ Member

Correct. Moulding for example. Stock a few profiles and call them "stock" profiles. That type thing.

5/13/15       #9: To inventory or not to inventory? ...
Pat Gilbert

That is not what I would call a finished good unless you are selling the molding like a lumber yard would?

Around here you can get custom runs in about 2 weeks, unless your lead time is shorter than that, what is the point?

5/13/15       #10: To inventory or not to inventory? ...
Derrek

Website: http://closetdr.com

Back when I first started out and wasn't manufacturing everything, we offered our product in white only. We stocked certain parts and cut others to order. As soon as we started to manufacture and brought in other colors, that became an impossible task.
I also used to buy all my colors in a full units to save $1-2 per sheet. I then learned that some colors we would sit on for months and tie up cash. I realized that my supplier was already storing it and will deliver it the next day so we don't stock very much panel products, or even hardware.
From "the Toyota Way" The more you stock, the less likely you are to have on hand what you need.

5/13/15       #11: To inventory or not to inventory? ...
David Waldmann  Member

Website: vermonthardwoods.com

What kind of business/product are you talking about?

Batch size should be determined by demand (including projected demand) as well as setup and run times. It's a balancing act, and each business needs to determine the best application of the principles for their situation.

If I had to make 4 or 10 LF of moulding from scratch every time someone ordered a frame I'd be out of business either from lost sales due to price needed to meet costs or lack of profit selling at a competitive price.

Then again, with nearly 2000 profile/wood/finish combinations available, I am not going to have 1000 LF of every one in stock. We make the raw moulding in larger batches (dependent on average sales and balancing batch size against turnover), and finish to order.

If you do reproduction replacement turnings by hand you will want to do them to order, but if you make chair spindles with a back knife machine you may want to do more than a few at a time.

5/13/15       #12: To inventory or not to inventory? ...
KJ Member

You guys are giving me a lot to consiser. Every time I check the site I realize how much I don't know.
'The more you stock the less likely you are to have on hand what you need." I love that. I have got to read that book!

5/13/15       #13: To inventory or not to inventory? ...
chipbored

Also put these on your reading list

The Goal: Eliyahu Goldratt
True 32 Flow Manufacturing: Bob Buckley
2 Second Lean: Paul Akers

5/13/15       #14: To inventory or not to inventory? ...
KJ Member

I've read the Goal, once I started it I couldn't put it down.

5/19/15       #15: To inventory or not to inventory? ...
Larry

I would add this to your reading list. Translated version. Not a quick read either. But very interesting story of the developement of the Toyota system.

Toyota Production System: Beyond Large-Scale Production ...
Amazon.com, Inc.

Rating: 4.7 - ‎46 reviewsIn this classic text, Taiichi Ohno--inventor of the Toyota Production System and Lean manufacturing--shares the genius that sets him apart as one of the most ...

5/19/15       #16: To inventory or not to inventory? ...
KJ Member

Thanks Larry,
I'll check it out.


Post a Response
  • Notify me of responses to this thread
  • Subscribe to email updates on this Forum
  • To receive email notification of additions to this forum thread,
    enter your name and email address, and then click the
    "Keep Me Posted" button below.

    Please Note: If you have posted a message or response,
    do not submit this request ... you are already signed up
    to receive notification!

    Your Name:
    E-Mail Address:
    Enter the correct numbers into the field below:
     

    Date of your Birth:



    Return to top of page

    Buy & Sell Exchanges | Forums | Galleries | Site Map

    FORUM GUIDELINES: Please review the guidelines below before posting at WOODWEB's Interactive Message Boards (return to top)

  • WOODWEB is a professional industrial woodworking site. Hobbyist and homeowner woodworking questions are inappropriate.
  • Messages should be kept reasonably short and on topic, relating to the focus of the forum. Responses should relate to the original question.
  • A valid email return address must be included with each message.
  • Advertising is inappropriate. The only exceptions are the Classified Ads Exchange, Machinery Exchange, Lumber Exchange, and Job Opportunities and Services Exchange. When posting listings in these areas, review the posting instructions carefully.
  • Subject lines may be edited for length and clarity.
  • "Cross posting" is not permitted. Choose the best forum for your question, and post your question at one forum only.
  • Messages requesting private responses will be removed - Forums are designed to provide information and assistance for all of our visitors. Private response requests are appropriate at WOODWEB's Exchanges and Job Opportunities and Services.
  • Messages that accuse businesses or individuals of alleged negative actions or behavior are inappropriate since WOODWEB is unable to verify or substantiate the claims.
  • Posts with the intent of soliciting answers to surveys are not appropriate. Contact WOODWEB for more information on initiating a survey.
  • Excessive forum participation by an individual upsets the balance of a healthy forum atmosphere. Individuals who excessively post responses containing marginal content will be considered repeat forum abusers.
  • Responses that initiate or support inappropriate and off-topic discussion of general politics detract from the professional woodworking focus of WOODWEB, and will be removed.
  • Participants are encouraged to use their real name when posting. Intentionally using another persons name is prohibited, and posts of this nature will be removed at WOODWEB's discretion.
  • Comments, questions, or criticisms regarding Forum policies should be directed to WOODWEB's Systems Administrator
    (return to top).

    Carefully review your message before clicking on the "Send Message" button - you will not be able to revise the message once it has been sent.

    You will be notified of responses to the message(s) you posted via email. Be sure to enter your email address correctly.

    WOODWEB's forums are a highly regarded resource for professional woodworkers. Messages and responses that are crafted in a professional and civil manner strengthen this resource. Messages that do not reflect a professional tone reduce the value of our forums.

    Messages are inappropriate when their content: is deemed libelous in nature or is based on rumor, fails to meet basic standards of decorum, contains blatant advertising or inappropriate emphasis on self promotion (return to top).

    Libel:   Posts which defame an individual or organization, or employ a tone which can be viewed as malicious in nature. Words, pictures, or cartoons which expose a person or organization to public hatred, shame, disgrace, or ridicule, or induce an ill opinion of a person or organization, are libelous.

    Improper Decorum:   Posts which are profane, inciting, disrespectful or uncivil in tone, or maliciously worded. This also includes the venting of unsubstantiated opinions. Such messages do little to illuminate a given topic, and often have the opposite effect. Constructive criticism is acceptable (return to top).

    Advertising:   The purpose of WOODWEB Forums is to provide answers, not an advertising venue. Companies participating in a Forum discussion should provide specific answers to posted questions. WOODWEB suggests that businesses include an appropriately crafted signature in order to identify their company. A well meaning post that seems to be on-topic but contains a product reference may do your business more harm than good in the Forum environment. Forum users may perceive your references to specific products as unsolicited advertising (spam) and consciously avoid your web site or services. A well-crafted signature is an appropriate way to advertise your services that will not offend potential customers. Signatures should be limited to 4-6 lines, and may contain information that identifies the type of business you're in, your URL and email address (return to top).

    Repeated Forum Abuse: Forum participants who repeatedly fail to follow WOODWEB's Forum Guidelines may encounter difficulty when attempting to post messages.

    There are often situations when the original message asks for opinions: "What is the best widget for my type of shop?". To a certain extent, the person posting the message is responsible for including specific questions within the message. An open ended question (like the one above) invites responses that may read as sales pitches. WOODWEB suggests that companies responding to such a question provide detailed and substantive replies rather than responses that read as a one-sided product promotion. It has been WOODWEB's experience that substantive responses are held in higher regard by our readers (return to top).

    The staff of WOODWEB assume no responsibility for the accuracy, content, or outcome of any posting transmitted at WOODWEB's Message Boards. Participants should undertake the use of machinery, materials and methods discussed at WOODWEB's Message Boards after considerate evaluation, and at their own risk. WOODWEB reserves the right to delete any messages it deems inappropriate. (return to top)


  • Forum Posting Help
    Your Name The name you enter in this field will be the name that appears with your post or response (return to form).
    Your Website Personal or business website links must point to the author's website. Inappropriate links will be removed without notice, and at WOODWEB's sole discretion. WOODWEB reserves the right to delete any messages with links it deems inappropriate. (return to form)
    E-Mail Address Your e-mail address will not be publicly viewable. Forum participants will be able to contact you using a contact link (included with your post) that is substituted for your actual address. You must include a valid email address in this field. (return to form)
    Subject Subject may be edited for length and clarity. Subject lines should provide an indication of the content of your post. (return to form)
    Thread Related Link and Image Guidelines Thread Related Links posted at WOODWEB's Forums and Exchanges should point to locations that provide supporting information for the topic being discussed in the current message thread. The purpose of WOODWEB Forums is to provide answers, not to serve as an advertising venue. A Thread Related Link that directs visitors to an area with inappropriate content will be removed. WOODWEB reserves the right to delete any messages with links or images it deems inappropriate. (return to form)
    Thread Related File Uploads Thread Related Files posted at WOODWEB's Forums and Exchanges should provide supporting information for the topic being discussed in the current message thread. Video Files: acceptable video formats are: .MOV .AVI .WMV .MPEG .MPG .MP4 (Image Upload Tips)   If you encounter any difficulty when uploading video files, E-mail WOODWEB for assistance. The purpose of WOODWEB Forums is to provide answers, not to serve as an advertising venue. A Thread Related File that contains inappropriate content will be removed, and uploaded files that are not directly related to the message thread will be removed. WOODWEB reserves the right to delete any messages with links, files, or images it deems inappropriate. (return to form)