Our Cycle Count for January 2012 was 0.17. This is a great start to the new year, and shows our employees are ready to tackle 2012 with exceptional accuracy. Can we go lower in February? We’ll find out soon!
What is Cycle Count?
Each month, we do an internal report called “Cycle Count,” to summarize all our “Production corrections” in one number. Cycle count is a direct measure of how well we perform at “doing it right the first time, every time.”
To calculate Cycle Count, you must divide the number of batches requiring corrections by the number of batches made, and subtract one from that number. If every batch requires an adjustment, the cycle count would be 1.0. If every batch required 2 adjustments, the cycle count would be 2, and so on. If we and our suppliers were perfect (Zero Defects), cycle count would be 0 (which never happens, because no one is perfect).