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Where are your savings?
A methodology for sizing Inventory
2
Ultriva Inventory Optimization Tool (IOT)
Ultriva’s IOT can help you identify whether you are a
candidate to implement electronic Kanban.
Review your history to figure out whether pull
replenishment is right for you.
If you are, see how much inventory reduction you will get if
you implement pull.
Executive Overview of Ultriva IOA
• Ultriva’s Inventory Optimization Assessment (IOA) is
structured virtual computer modeling and simulation
engagement performed by Ultriva inventory
management experts using our patent-pending
Inventory Optimization Tool (IOT).
• Ultriva has successfully completed IOAs for over 100
leading manufacturing firms worldwide.
• Every IOA Ultriva has performed has revealed
significant inventory savings opportunities.
3
Minimal Customer Support Produces Maximum Value
• All we need from you is 6 – 12 months of historical inventory data in simple tab
delimited file format. Ultriva does the rest.
• Ultriva inventory management experts will upload your data to the IOT.
• The IOT will perform the following analysis tasks:
– Back simulate and then graphically display historical consumption / replenishment
patterns for each part and supplier
– Calculate the material replenishment loop size for each part and then superimpose the
recommended replenishment pattern over the actual historical replenishment pattern
for the same period
– Compare historical consumption / replenishment patterns to Ultriva’s recommended
replenishment patterns
– Calculate the impact (both inventory dollars and inventory turns) of Ultriva’s
recommended replenishment methods on the parts in the IOA study
– Produce both summary and detail level findings for all parts in the IOA study
• Ultriva will sign an NDA with your firm.
IOA Inventory Savings Analysis – Summary Level
5
S/X Ratio is the product of the
Standard Deviation / Mean.
calculation. It shows of “Variability
of Consumption” for the part within
the historical demand period.
S/X Ratio is the product of the
Standard Deviation / Mean.
calculation. It shows of “Variability
of Consumption” for the part within
the historical demand period.
Current vs.
Projected
Inventory Values
& Turns for Items
in the IOA study.
Current vs.
Projected
Inventory Values
& Turns for Items
in the IOA study.
• Inventory Savings = $2.3M
– 71.52% improvement
• 2.5X Improvement in Inv.
Turns – 251.06%
improvement
• Inventory Savings = $2.3M
– 71.52% improvement
• 2.5X Improvement in Inv.
Turns – 251.06%
improvement
IOA Inventory Savings Analysis – Item Level
6
Ultriva can
perform what-if
scenarios by
changing Lead
Time, Lot Size, and
Safety Stock!
Ultriva can
perform what-if
scenarios by
changing Lead
Time, Lot Size, and
Safety Stock!
Opportunity to
reduce on-hand
inventory in the
system
Opportunity to
reduce on-hand
inventory in the
system
$560K in savings
for a single part!
$560K in savings
for a single part!
IOA Advanced Settings
Lead Time, Safety Stock, Lot Size, and Standard Deviation
algorithms can be changed to perform “what if” analysis.
7
Ultriva IOA Deliverables
• Analyze and graphically display your historical consumption
and replenishment patterns by item and supplier
• Identify candidate items for pull-based replenishment
• Determine optimal replenishment cycle (a.k.a. loop size) for
each item
• Compare and contrast recommended replenishment cycle to
historical replenishment pattern for each item
• Compute inventory savings by item and supplier
• Produce and deliver a web-based ‘IOA Management Outbrief
Report’ detailing inventory savings opportunities
• Provide soft copies of all IOA deliverables
Why your firm should seriously consider this offer!
• The IOA provides actionable business intelligence on current-
state inventory performance.
• The IOA provides supporting data to help build the business
case for change in current-state inventory replenishment
methods.
• The IOA WILL UNCOVER SIGNIFICANT OPPORTUNITIES FOR
INVENTORY SAVINGS.
• Implementation of IOA recommendations will generate hard
dollar savings for your firm.
• Similar IOA engagements would cost you thousands of dollars
and take weeks to complete.
9
Try it out for free
To redeem your free trial:
•Login to http://leanassessment.kanban.com
•Register your company details
•Wait for an email with password
•Get going with your analysis
10
Ultriva Inc.
1601 S. De Anza Blvd., #260
Cupertino, CA 95014
(408) 248-9803
www.ultriva.com
Find out if you are ready for pull replenishment
using Ultriva’s Inventory Optimizing Tool
Identify which parts are suitable for Kanban, how to size the Kanban, how much safety stock
you should carry and the potential inventory reduction.

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Ultriva Inventory Optimization Tool

  • 1. Where are your savings? A methodology for sizing Inventory
  • 2. 2 Ultriva Inventory Optimization Tool (IOT) Ultriva’s IOT can help you identify whether you are a candidate to implement electronic Kanban. Review your history to figure out whether pull replenishment is right for you. If you are, see how much inventory reduction you will get if you implement pull.
  • 3. Executive Overview of Ultriva IOA • Ultriva’s Inventory Optimization Assessment (IOA) is structured virtual computer modeling and simulation engagement performed by Ultriva inventory management experts using our patent-pending Inventory Optimization Tool (IOT). • Ultriva has successfully completed IOAs for over 100 leading manufacturing firms worldwide. • Every IOA Ultriva has performed has revealed significant inventory savings opportunities. 3
  • 4. Minimal Customer Support Produces Maximum Value • All we need from you is 6 – 12 months of historical inventory data in simple tab delimited file format. Ultriva does the rest. • Ultriva inventory management experts will upload your data to the IOT. • The IOT will perform the following analysis tasks: – Back simulate and then graphically display historical consumption / replenishment patterns for each part and supplier – Calculate the material replenishment loop size for each part and then superimpose the recommended replenishment pattern over the actual historical replenishment pattern for the same period – Compare historical consumption / replenishment patterns to Ultriva’s recommended replenishment patterns – Calculate the impact (both inventory dollars and inventory turns) of Ultriva’s recommended replenishment methods on the parts in the IOA study – Produce both summary and detail level findings for all parts in the IOA study • Ultriva will sign an NDA with your firm.
  • 5. IOA Inventory Savings Analysis – Summary Level 5 S/X Ratio is the product of the Standard Deviation / Mean. calculation. It shows of “Variability of Consumption” for the part within the historical demand period. S/X Ratio is the product of the Standard Deviation / Mean. calculation. It shows of “Variability of Consumption” for the part within the historical demand period. Current vs. Projected Inventory Values & Turns for Items in the IOA study. Current vs. Projected Inventory Values & Turns for Items in the IOA study. • Inventory Savings = $2.3M – 71.52% improvement • 2.5X Improvement in Inv. Turns – 251.06% improvement • Inventory Savings = $2.3M – 71.52% improvement • 2.5X Improvement in Inv. Turns – 251.06% improvement
  • 6. IOA Inventory Savings Analysis – Item Level 6 Ultriva can perform what-if scenarios by changing Lead Time, Lot Size, and Safety Stock! Ultriva can perform what-if scenarios by changing Lead Time, Lot Size, and Safety Stock! Opportunity to reduce on-hand inventory in the system Opportunity to reduce on-hand inventory in the system $560K in savings for a single part! $560K in savings for a single part!
  • 7. IOA Advanced Settings Lead Time, Safety Stock, Lot Size, and Standard Deviation algorithms can be changed to perform “what if” analysis. 7
  • 8. Ultriva IOA Deliverables • Analyze and graphically display your historical consumption and replenishment patterns by item and supplier • Identify candidate items for pull-based replenishment • Determine optimal replenishment cycle (a.k.a. loop size) for each item • Compare and contrast recommended replenishment cycle to historical replenishment pattern for each item • Compute inventory savings by item and supplier • Produce and deliver a web-based ‘IOA Management Outbrief Report’ detailing inventory savings opportunities • Provide soft copies of all IOA deliverables
  • 9. Why your firm should seriously consider this offer! • The IOA provides actionable business intelligence on current- state inventory performance. • The IOA provides supporting data to help build the business case for change in current-state inventory replenishment methods. • The IOA WILL UNCOVER SIGNIFICANT OPPORTUNITIES FOR INVENTORY SAVINGS. • Implementation of IOA recommendations will generate hard dollar savings for your firm. • Similar IOA engagements would cost you thousands of dollars and take weeks to complete. 9
  • 10. Try it out for free To redeem your free trial: •Login to http://leanassessment.kanban.com •Register your company details •Wait for an email with password •Get going with your analysis 10 Ultriva Inc. 1601 S. De Anza Blvd., #260 Cupertino, CA 95014 (408) 248-9803 www.ultriva.com Find out if you are ready for pull replenishment using Ultriva’s Inventory Optimizing Tool Identify which parts are suitable for Kanban, how to size the Kanban, how much safety stock you should carry and the potential inventory reduction.