{domain:"www.qualitydigest.com",server:"169.47.211.87"} Skip to main content

User account menu
Main navigation
  • Topics
    • Customer Care
    • FDA Compliance
    • Healthcare
    • Innovation
    • Lean
    • Management
    • Metrology
    • Operations
    • Risk Management
    • Six Sigma
    • Standards
    • Statistics
    • Supply Chain
    • Sustainability
    • Training
  • Videos/Webinars
    • All videos
    • Product Demos
    • Webinars
  • Advertise
    • Advertise
    • Submit B2B Press Release
    • Write for us
  • Metrology Hub
  • Training
  • Subscribe
  • Log in
Mobile Menu
  • Home
  • Topics
    • 3D Metrology-CMSC
    • Customer Care
    • FDA Compliance
    • Healthcare
    • Innovation
    • Lean
    • Management
    • Metrology
    • Operations
    • Risk Management
    • Six Sigma
    • Standards
    • Statistics
    • Supply Chain
    • Sustainability
    • Training
  • Login / Subscribe
  • More...
    • All Features
    • All News
    • All Videos
    • Contact
    • Training

Five Costly Manufacturing KPI Mistakes CFOs Make

Instead of measuring on inventory cost, use tools to forecast the right inventory mix

Doug Bulla
Mon, 08/28/2017 - 12:02
  • Comment
  • RSS

Social Sharing block

  • Print
Body

Being a numbers-driven manufacturing CFO is a good thing—in fact, it’s essential. But as a CFO, you probably know finance and operations more than you know the ins and outs of manufacturing, which can lead you to measuring the wrong key performance metrics.

ADVERTISEMENT

Here are five costly manufacturing mistakes to avoid.

Mistake No. 1: Using inventory costs as primary driver for manufacturing performance

CFOs often want to drive down inventory costs to free up cash flow. On the surface, that strategy makes sense. However, what happens in the real world is that employees meet the mandate, but miss getting the inventory mix right. Employees may not be aware of all the bill-of-material needs and supplier lead times. Your company risks losing more money than you save when you can’t meet the production schedule because you don’t have the right parts in stock. High expediting costs for parts delivery and then customer shipments are symptoms of having inventory not right-sized to your actual use. Instead of measuring on inventory cost, use tools to forecast the right inventory mix and safety stock you need to keep your plant running smoothly.

 …

Want to continue?
Log in or create a FREE account.
Enter your username or email address
Enter the password that accompanies your username.
By logging in you agree to receive communication from Quality Digest. Privacy Policy.
Create a FREE account
Forgot My Password

Add new comment

Image CAPTCHA
Enter the characters shown in the image.
Please login to comment.
      

© 2025 Quality Digest. Copyright on content held by Quality Digest or by individual authors. Contact Quality Digest for reprint information.
“Quality Digest" is a trademark owned by Quality Circle Institute Inc.

footer
  • Home
  • Print QD: 1995-2008
  • Print QD: 2008-2009
  • Videos
  • Privacy Policy
  • Write for us
footer second menu
  • Subscribe to Quality Digest
  • About Us
  • Contact Us