Velocity Micro Monitor

Aggregate Inventory Management

This article is also available on our website: PROACTION – Generation Best Practices. It is an excerpt from an article originally written by George Miller, founder of PROACTION. It was modified and updated by Paul Deis, PROACTION CEO.

Overview

In spite of great advances in industrial management in areas such as JIT, Flow Manufacturing, Lean Manufacturing, MRP / MRPII, ERP and Supply Chain Management, and now, E-Commerce, inventory management investment remains a major problem for many organizations. Install software latest and mouth the keywords most popular is no guarantee of good inventory management. As with almost all the Best Practices, is the effective use of tools available by properly educated and trained, which creates the desired result.

This document discusses how to create and maintain Aggregate Inventory Management to improve investment and operations management. It is a macro, "top-down", which complements a company's "micro" SKU (part management techniques) number level.

Definition, purpose and objective

• Definition, APICS dictionary defines Aggregate Inventory Management "establish the overall levels of inventory desired and implement controls to ensure that individual decisions refueling achieve this goal."

It includes:

• How to assess the overall levels of investment and goals.
• How to identify the level of investment inventory drivers and help control them
• How to turn inventory management added "macro" strategy of "micro" controls and develop accountability
• Performance Measures
• Specific techniques, such as ABC analysis, control parameters, graphics accumulation of inventories, control of entry and exit.

• Meta-helps to manage the assets and make money.

• Objective-Optimize inventory levels within the parameters of service, costs, logistics, processes and investment objectives / constraints. Inventory Management should be exercised to maintain the lowest inventory levels consistent with the objectives. Too much inventory reduces Return on Investment and Return on Assets (lower profits). It also tends to increase expenditure in the form of interest, handling and storage, management, damage, loss, obsolescence, monitoring, taxes insurance, etc.

Although the majority of the directors, accountants and tax authorities in inventory as an asset, treating it as such for operational purposes can create liabilities. You've probably heard stories about factories working to "keep people busy" or improve the "efficiency" and nonsense similar. If they are doing the inventory that is not needed now, they are often wasting money. If they work just to keep people employed they are still material consumption, energy and other resources that can not earn enough profits. They can use resources that could be better used for the most immediate and profitable. If the inventory is deployed improperly, can create obligations. A client of one of our clients had branch managers that would "treasure" products in their remote branch offices so that they "do not run out." This created an excess of material in the wrong places.

How to Evaluate Inventory Investment Requirements

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First, understand market needs and customer expectations of services, their company's own needs, expectations, processes, skills, expertise and vendor mentality, industry standards and mentality, world-class best practices.

From this, you must learn fast and reliable for customers expect to receive their remittances, which is involved to obtain raw and production completed, What is the best in the industry is doing and intends to do, and what could be possible. For example, if all competitors are shipping inventory, then you do not need to duplicate that feat, or determine how to manufacture very fast, or convince customers that their product is so great or so cheap that it is in their interest to wait while you make the order. Or, you can discover how to acquire the good or for the manufacture of a better way that allows you to carry less inventory.

The result of this step is to establish standards that stock industry can be and what is possible. Make sure you has an "apple-to-apples comparison": there may be significant differences between the companies. For example: A company may stock products finished, another one can sell it to another division or a distributor.

Measure current and historical inventory and Performance Levels

Measure levels of the company's current and historical inventory and performance, not just the overall statistics, but divided into levels of responsibility, goods, surface type (raw materials, work in process, finished goods, shipping) and the market. Do this to help isolate the values for levels of responsibility and to show the performance of stock investment by the market, process or product line. You may find that their systems are unable to do this, which means that time is past to make changes to them, whether to replace them, modify them or put in inventory tracking and separate control systems (recommended as a last resort).

The result of this step is to establish how your business is doing and has done with the management inventory.

Establish Performance Metrics

Establish performance indicators – Inventory is usually measured in value money, as U.S. Dollars ($ USD). Another, complementary way is to measure it in speed. For example, you can measure it in "revolutions" that refers to how many times it moves or "turns" per year. For example, if there was an average of $ 100 in stock last year and the annual cost of sales for the year was U.S. $ 2000, which would be calculated as the cost of sales ($ 2000) / average inventory ($ 100) = 20 laps.

Turns (or turnover) generally is good, since the cost, service or quality are not unacceptably affected. If the answer is not simply to increase the inventory, but to try improve the basic drivers "that influence, instead, if possible and profitable. There are variations of turnover (this should not be confused with turnover "European", which usually refers to the total sales for a period) formulation, particularly in addressing how to calculate the average cost products sold or inventory.

Sometimes turns are calculated by comparing the value of total sales with an average cost of inventory or sales value equivalent. To maintain easily comparable values, all numbers in the state fully "loaded" cost, using industry standard overhead / calculations load, unless it is contrary to the standards of your industry or location. Hopefully future accounting practices worldwide standard can help reduce the confusion in this area.

He is becoming more common to measure the performance of inventory days coverage, instead of turnover. People seem to relate better.

Inventory and sales can also be commonly measured in more industry friendly terms, such as t (steel) bushels (corn), lodging (construction or real estate) or oz (gold).

A further refinement is to stratify the inventory of quality ", as stated Gary Gossard of IQR International. The idea of classifying stocks as active, slow or obsolete has been around a long time. Monitor it constantly, to highlight any changes the quality or condition of the inventory as a new request for an item that is already in excess or obsolete. The inventory-weighted assets "good" does not exceed its "day of coverage of the target, divided by the total inventory, multiplied by 100, which is equivalent to the Inventory Quality Ratio (IQR) number. 33-40% is typical of companies mediocre. 66% is considered very good.

All these numbers can be divided into stages to show changes over time, due, for example, for the supply and seasonal changes in demand, and planned improvements. These can then be applied in greater detail for the various organizations appropriate, product lines, channels of trade, department stores, planning groups or other responsible bodies and then tracking the results.

The numbers should be able to be "punched" down or up, the level of the entire company to an individual SKU (Stock Keeping Unit) transaction or part number. Managers or employees should be able to look at the totals for their areas of responsibility and easily identify problem areas specific to lower levels and finally to specific items, policies, orders and decisions that brought them.

Here are typical Inventory System Metrics, which should be broken down by organization / responsibility, area, type of commodities, the market / product, and time phases, with targets and actual values:

• Volume inventory or Days Coverage
• Inventory value or other unit of measure, such as tons
• Inventory of quality, "including IQR and summaries of the amounts of each type
• Customer service level, expressed as the customer perceives

ABC Analysis

Perform an ABC analysis, a simple, common and powerful tool for inventory management. It is based on the law of Pareto "80-20". The most common approach is to calculate the demand in units, preferably for future periods, then calculate the value of using total cost of each item (total cost of sales multiplied by units needed) for a given future period. If the data for future demand are not available, the next best thing is to use the story, but it will not work well for items with greater variations in demand over time. This sequence of decreasing value. Typically 10% of the top 15 items account for 75-85% of the value ( "A"), the next account for 20-30% 10-20% of the value ( "B") and all accounts for the rest, about 60-70% of items, usually about 5% of the total ( "C"). Your inventory should be less than these percentages for the "A", because they are much more tightly controlled and somewhat higher for the B and significantly higher for the C's.

Then compare the list of real values in the inventory plus real commitments and planned. The answers often suggest immediate corrective action!

A list suggests that the ABC focus on controlling the largest part of inventory investment. This does not say is that it is missing a screw, $ 10 can prevent the deployment of a radar unit $ 5,000,000, thereby ensuring that there are control systems for all items, just control the much more expensive care. Err on the side of caution for the items cheaper, allowing coverage of safety stock or "two bin" approach to avoid lack of stock, but keep the inventory of getting out of control.

Create an inventory Buildup Chart

Another good analysis tool is the graph of the accumulation of inventories. Use a standard xy coordinate graph. Portion of cost accumulation over time, by product group, with the cost of the "y" (vertical axis) and time of the "x" (horizontal) axis. Normally, the cost of raw material accumulates the first time, followed by workload and application. Allow for safety stocks, inventory lot size, the actions of transit defects / rework / scrap, normal and finished products and stocking distribution pipeline. Show the effect of a monitoring scheme. Some people also dealing with accounts receivable as a kind of inventory of fact, until it is paid for. Since this letter is completed, shows that about shock value. Presented correctly, it will really make people think about the effect of the restrictions and decisions (just another form of restraint) in the inventory. Then work in changing the rules!

One company had a curve of accumulation of 14 months, which was reduced to 4 months. In other business, the longest lead item of material represented only 20% of product cost, capacity only for this item, instead of finished products, rather than just respond to orders, enabling them to radically reduce the response time for orders by 70%. He also added the flexibility to use this material to make a number of different end items.

As identify and inventory control Drivers

Inventory drivers are things that tend to take stock to go up or down. Identifying them and you have some indication of changes in the inventory. Understanding them is the beginning of gaining control. I said things that would drive up the inventory, for example, more than SKU. I refrain from stating the obvious: do otherwise would reduce the stock. eg reduce SKU to reduce inventory.

Key drivers are briefly as follows:

Number of SKUs

The more items you have, the more you need to inventory, in most cases. If you sell 500 a year's Widgets A, then replace it with 250/year A and B of 250, you probably have to carry more inventory. By: demand and supply and the variability of the total economic order quantities are more likely to be higher for the 2 items which for one.

The more SKU in a product, the more difficult it is to bring the match sets of tiles together at the same time. Because there are multiple items with multiple vendors, maintained and forwarded through multiple locations or paths, with more opportunities for delays, defects, etc., more inventory is required.

Operations are more and taking more time, more inventory you will tend to have. More operations, a supply chain longer. It can also mean different lot sizes transaction costs and more places for delays and defects to occur. Simplifying the process helps reduce inventory.

The more facilities that the inventory passes in and out, the farther and these are the hardest to reach and are passing the material inside and out, the more inventory you will tend to have.

The inventory is more often the control of a system or organization to another and the less efficient transfer is, the more inventory you will tend to have.

Lot Sizes

Batch / lot sizes greater than the delivery of customer orders sizes tend to increase the inventory. If clients to one product at a time, but the economy, handling or process considerations suggest you do one time in 1000, then you will have more stock available than will be consumed on demand, resulting in a buildup of inventories. If you need things in order cases, tens, carloads, tons or supply week, " but they are required downstream of the supply chain in small increments, you will tend to accumulate more inventory.

The longer the duration of the connection inventory more you tend to have. If something takes 16 weeks to start, instead of 16 days, there is no in-process inventories needed to cover the pipeline time. If it belongs to you or your supplier, is increasing the cost of someone that will eventually affect the cost and the cost of your customer. More time also lead means more chance of getting or have something wrong outside while waiting for him, which is usually treated by having excess stock.

Implementation costs

This refers to the cost of owning inventory. Let's look at what goes into inventory "cost of ownership", often called "cost transport ", and expressed in terms of cost per cent of stock assessment for year of ownership. For example, a performance 25% of the (typical) indicate that costs about U.S. $ .25 to every $ 1.00 their inventory each year. These costs consist of:

• Cost of money – The cost of capital for the company or, in some cases the opportunity cost or the return that can be won with money and applying it productively elsewhere. The cost of money has ranged from 6% to 18% in the U.S. last 25 years. Obviously, this has a very significant impact on investment strategy.
• Obsolescence – The risk of inventory never be used, or in need of redrafting to make it usable, must be taken into account the cost of owning INVENTORY. In theory (and practice), the higher the stock is and the more it is performed, the engineering changes more likely, customer preferences and technological changes that will process the inventory unusable. In the clothing industry, it is not uncommon to see as inventories depreciate up to 90% when styles change. Some parts of the electronics industry have problems with inventory becoming obsolete very quickly due to technological change.
• Contraction – Part of the inventory becomes unavailable to the owner due to loss, damage, theft or deterioration. The inventory is already there and the more there are, the more likely this to happen. Steps to prevent just raise transportation costs in other areas such as security, climate control, better control systems, recruitment, etc.
• Quality factors – Allowances for income, attrition, scrap and rework. This is really more a function of the process that the amount of inventory invested and is more related to the debt, but is sometimes included as part of the aggregate inventory carrying cost.
• technological obsolescence or Price – The prices do not always go up. In fact, in industries such as electronics, prices often plummet Due to constant improvement projects, products and improvements in process technologies. Therefore, it is desirable to minimize inventories in high-risk areas.
• Taxes – There are two dimensions for this: 1) in some areas, a tax is levied on stocks, so the more stock, more tax is paid. More 2) inventory is considered an asset for accounting and tax rules. Therefore, increasing the inventory shows "profits" and profits are taxed normally, usually several government entities.
• Insurance – The cost of insurance on inventory needs to be considered, as well as providing space, equipment, personnel and other resources needed to control it.
• Space – storage space expensive sometimes occupies 25-30% of the total facility, when one considers warehouses of raw materials, warehouses, work in process storage, receipt, transportation, warehouses outside, MRB and storage areas of waste. Reduction Inventory campaigns can help companies avoid the need to move to larger premises, or allows them to close or reduce the existing facilities.
• Manpower – All of this inventory needs of the people to order, receive inspect, record, store, move, count, recover, post it in the general ledger, etc. People are the largest or second largest expense (behind material) for most manufacturers.
• Record Keeping Systems – Software, procedures, equipment and paper should be used to track and manage inventory.
• Material Handling / Storage Equipment – Conveyors, forklifts, portable bar code, scales, storage and retrieval systems, trucks, trailers, containers, racks, shelves must all be purchased, leased, maintained and cared for.
• physical inventories, reconciliations – should be performed to ensure that stocks are accurately recorded and maintained.
• Transportation — should be provided to move inventory in and out of the facility, the providers within the facility, workstations and different areas storage.
• Energy – heat, light, humidity control, air conditioning, refrigeration and fuel must be consumed to make it all happen.
• inappropriate Lot Sizing – No inventory formula, the cost of the inventory is often expressed as a flat percentage the value of inventory, for ease of calculations, but this is a simplification of reality. For example, consider the movement of materials / costs storage. Just because a dollar of inventory is added, does not mean that transportation costs go up, say, $ .02. In reality, the costs do not usually a rise in direct proportion at all, but only when we had to pay an additional expense, or make capital investment in equipment or space nearby to accommodate stocks. So, in fact, most of these costs are step functions instead of continuous curves.
We recommend caution in the use of so-called EOQ (Economic Order Quantity) formula in the planning. While these guidelines may be useful in some cases, can easily go awry and hypersensitivity to changes in implementation and costs of the order, which are usually no more than guesstimates at best. We smile in amusement PhD's made or lost in the study of such calculations arcane, often failing to consider basic realities, such as the amount of space and money we have, anyway? You can refer to the book of Paul, Production & Inventory Management in the technological age, pages 137-139 for a detailed explanation of why this method of calibration is very weak and should be used with caution.

• variation in supply refers to the reliability of the supplier to deliver in the desired units required amount at the right time, at a of acceptable quality. If this can not be done reliably, then the companies tend to perform a buffer (safety) of shares to compensate for deficiencies supply system.

• Variation in demand – refers to the ability to reliably forecast what the client will require (even if a customer is a internal or external). Low reliability tends to encourage buffer (safety) stocks.

• Defects of extra inventory is often taken allow rejection likely. This is just a specialized form of safety stock supply and demand of buffer.

• constraints Logistics / transportation costs – This is also sometimes falls within the supply and demand variation and it certainly can affect you. For example, one of our customers transporting freight for parts for a factory in Portugal, or at least they do it if you have to transport by air to get them there faster. Because the ships traveling between ports economic only leave every few weeks, a container of 20 feet or 40 is the longest size of navigation custom. A certain amount of time is required for packaging, transport to the terminal, loading, transport, unloading, customs and transport to the recipient. These are very real limitations of logistics that must be built in the "pipeline" part of the inventory model.

Another company studied ships fresh flowers from Latin America to the U.S. Air transport is the only viable way to deal with shipping, due to shelf life and health issues. This results in a lower "pipeline" and higher transportation costs, which end directly funded inventory, or rolled over, or the cost of sales same effect final.

As the unit costs rise, so will the inventory, but the turns, or days of coverage, will remain the same.

As set inventory targets

After analyzing the current situation, drivers and external situation, estimate that inventory levels should be with respect to certain sets of circumstances. There are impressive supply chain modeling tools to help you do this. Our experience is that the development of a detailed and comprehensive model of inventory behavior is quite a task to create and an important task to maintain, so we usually do not. Usually work on projects with limited budgets, we can study the past behavior and focus on the main drivers, in order to change some of the potential impact to achieve the objectives set, a sort of "delta" approach.

We will not talk to you of sophisticated modeling tools, however. They have their place. When there are large amounts of money involved and / or restrictions to resolve complicated, modeling tools, sometimes helps. Many standards control methods presented below contain elements of modeling.

Warning: Calculating or modeling the behavior of inventory using only rules and parameters almost always be wrong. Why: If, for example, you assume that the inventory will be an average of ½ times the amount of order and stock security, you will often be wrong. Supply and demand real variability will be different. Defective items / returns customer can result in accumulation. Unmatched sets parts due to the shortage will result in accumulation. It is usually larger than the model would indicate.

Par the best plans can go off track if something unexpectedly changes a cut-orders by major customers, unexpected faults occur, requiring ad-hoc reaction rather than careful, deliberate, advanced planning.

There are two main directions of approach to inventory management-Top-down and bottom-up. Most successful companies use a combination both.

• Top-Down "- this is the" macro "approach. Start with a goal, objectives, ABC (Pareto) analysis of the estimated intake or historical knowledge of global processes and deadlines. Set overall goals, by business unit, at least, preferably on a lower level, so that managers average or even individual supervisors, work teams or staff of administrative control can be made more accountable. It takes more effort control is transferred to a lower level.

Establish a tracking system, such as inventory level versus real destination. Compare numbers for real sales forecasts. Monitor commitments and production plans against targets … Hold managers accountable for results and make them come back with reasons why goals can not be met and solutions to problems. Motivate them to solve the underlying problems. Help them with problems outside its scope of authority.

Another monitoring tool is good input-output control. Simply build a table in stages of a project's beginning and ending inventories, showing a starting input, output and results. Next, officials of tasks to make the delta "of" happen and monitor the actual values for each period.

• Bottom-Up-Look at each item, determine costs, delivery times, reliability of supply and demand / variability, the default rate, the transport, storage, set-up/batch size considerations, buffers, process, handling considerations. Next, define the methods of proper planning and control parameters, or down the company's standard product line, good or service at a low standard, or just set them on the level of article / piece.

This takes a lot more effort than the mere exercise of top-down control, but can produce better results.

Educate and train people in inventory management and approaches to control.

As the inventory control

After you do all your research and analysis, set goals and establish its control system, then you get the hard part – actually making it happen.

Quick Hits – Simply create the goals of aggregation, understanding the drivers, education and training and the development of responsibility, establishing the responsibility of monitoring and the results usually have effects significant. I have seen further reductions of 50% from this alone. This may be cheaper, faster way to make some change happen, but it has a limited effect, because the approach lacks details and it will not make major permanent changes in the ways that it can operate without additional actions.

What is "control?" – Control of means to make something happen or know why it is not, then something could be done about it. Using this definition, there is no such thing as an uncontrollable situation. Someone once told me that he could not service inventory control, because of little reliable supplier lead times. Nonsense! Deadlines set can be controlled by various strategies, such as re multiple sources, outsourcing, safety stock, urged to improve supplier performance, order early, improving their own planning and reaction times, changing the designs, alternative routing, training customers to order differently, with suppliers of raw materials inventory. At least some of these would work in almost any situation.

Detailed methods of control

Most control methods detailed below some logic built in inventory management, but must be properly configured and tuned for optimum use. Provide and implement control tools, such as:
• Søgeordre Order only to meet customer orders. This is the most straightforward, intuitive and tends to avoid excess inventory. It will only work if it meets the customer lead time and expectations of cost. It works best for custom ordering and when it will result in customers 'expectations to provide services' for the meeting.
In most cases, organizations must anticipate the needs of business to be successful. This often involves making inventory in advance to able to deliver on time and to produce in economic quantities. Thus, other techniques are often used, such as:
• reorder point-Keeping a certain amount available and to help ensure that it is available when needed, but not in excessive amounts.
• min-max-This is a modified version of the point of view, with maximum and minimum limits.
• Kanban-This is a more sophisticated type of reorder point. Instead have a unique point of view, with one end relatively large and irregular amount, a refuel a smaller amount of time that is consumed. This method was popularized for success in the Toyota Motor Company in Japan
• MRP (Material Requirements Planning) – formalized in 1950 by Dr. Joseph Orlicky, MRP uses a master plan developed from an analysis of excessive demand, forecasting and production plans. It then considers the available inventory, parts requirements calculated from BOM, then with purchase orders outstanding, delivery time, considerations of logistics, inventory, security and other standards of ordination, to develop a material purchase and programming of works to meet the demand forecast and actual.
Nowadays, the system of a company MRP is often a subset of its ERP (Enterprise Resource Planning) or Supply Chain Management System, which integrates the MRP as only one part of a "system of global Enterprise." MRP is not always the most appropriate approach for all environments. In recent years, was successfully modified, by incorporating techniques Kanban, JIT, Lean Manufacturing, repetitive programming, Theory of Constraints and others.
• DRP (Distribution Requirements Planning) – This is a specialized form of MRP, for distribution networks. It uses the same principles, but may also consider the dynamics of distribution networks multi-level, planning level service, cross docking, shipment staging, loading truck, optimization of inventory deployment and other considerations.
• Supply Chain Planning/Optimization- This is the next level of sophistication of MRP and DRP. It creates a model of supply chain, which may include suppliers, manufacturing, different levels of distribution and monitoring of the same inventory through one or more levels of customer property.
• scheduling repetitive-Designed for the production of streaming.
• Process monitoring / control – Control of a course, often continuous process, usually by monitoring and controlling the process parameters, such as the properties of raw materials, the desired attributes, temperature, pressure, speed, viscosity, finishing, byproducts, etc.
• Safety stock / lead time security – Most of the above techniques can be improved by building supply and demand for buffers to float / uncertainty of what will be needed and when and that offer will come and when. It can be done by adding a fixed or time coverage. The problem with this approach is that people tend to make allowances wrong, usually in the upper part. This inflates the inventory, can really confuse the priorities and use is necessary capacity, working on things not really needed. The best approach is to try to reduce the variation the process of supply and demand, so that the safety stock is less necessary.
• Vendor Managed Inventory – a form of delegation that is proving to be very popular and sometimes very successful. One provides the supplier with the demand and logistics data and make it the responsibility to ensure that the quantities of the right are available at the right time and place for you to meet the demand. It needs cooperation, monitoring and interests and common objectives to be successful.
• Input / Output – Do not forget to apply the method of input-output, previously described as a tool to help make reductions.

Pitfalls in the use of control parameters

With the use of MRP, MRPII, ERP and now "Supply Chain Management" systems, there are more opportunities to improve inventory management, but also more likely to lose control! Unless there is a clearly stated Aggregate Inventory Management approach embedded in the system, through education, training and parameters, yes, I said parameters!, you will probably fail.

War years of history George Miller's "ago, I worked for a niche specialty MRPII / ERP company. After I left for the world of consulting, a client of the call inform me that the software was not working "and called me to come and help them. After just one day in church, told them that the problem was that the system was to carry out their instructions to the speed of light, spewing forth recommendations for the purchase of stock, based on their parameters unrealistic. You see, most of these systems have various "sizes" and "levers" to set the control to adjust the operation of the for the company, products and processes. These can be defined, for example, the entire system, but can usually be replaced on the business unit, plant, department, product line and / or the level of part number. Each level of default normally up to the lowest level, unless you replace it.

"For example, they used extremely long process on the item records of planning and had safety stock and scrap factors provided at various levels in the list materials, "pyramiding" (increasing) demand calculations considerably. No surprise, then, except for them, they were well on top of your way to double your investment in inventory in record time, without significant benefits. The prescription was:
1.The management team to get personally involved in defining the parameters of the system.
Employees 2.Educate concepts of inventory management and train them in proper use of system tools.
3.Establish and follow a special report to assess the effect of the modifier "order" parameters, such as safety stock, scrap, and the factors attrition, method of planning the order, the order quantity rules, multiple order, lead time, analysis time, inspection time.
Conclusion: inventory can be managed systematically. This does not happen by itself. Needed is a reason, plan, education, training, organization, tools, policies, procedures and management of willpower.

References:

1.APICS Dictionary, 7th Edition, APICS, Falls Church, VA
2.Production and Inventory Control, Second Edition, George W. Plossl, Prentice Hall, 1985 (originally 1967)
3.Production and Inventory Management, Second Edition, Fogarty, Blackstone, Hoffman, Southwestern Publishing, Cincinnati, Ohio, 1991
4.Inventory Reduction, George Miller, 1990.
5.IQR Manual, IQR International (Proprietary document), San Juan Capistrano, CA

About the Author

George J. Miller, CFPIM, is Founder of PROACTION. Prior to selling the company to Paul Deis, George had worked with dozens of companies in assignments involving productivity, quality and service improvement, business systems, change management, acquisitions, divestitures, expert witness testimony, and others. Prior to founding PROACTION in 1986, he was Vice President of Marketing for Western Data Systems; Director of Planning and Development and Assistant Director—Operations for Purolator Technologies (PTI); Consultant for Booz-Allen & Hamilton, and Manufacturing Systems Manager for Becton-Dickinson.

Paul Deis, CFPIM, is CEO, PROACTION
. He brings over 25 years of consulting and senior executive experience to his work, including detailed work with nearly 60 companies. Prior to acquiring PROACTION, Paul’s experience includes running a small ERP software company, leading other consulting businesses, prior work with PROACTION, Manager at Deloitte & Touche, VP Manufacturing at Raypak, Inc., where he was very successful with an early Lean management initiative, and dozens of projects in the areas of enterprise software, operations management, crisis resolutions, in a wide variety of industries, business types, and scales. Website:
PROACTION – Generating Best Practices

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