Inventory

Andy Kay hired a guy named Gene. I wish I could remember Gene's last name. Gene was about 75 years old and he wore, in hot Southern California, gray wool slacks, a plaid shirt, bow tie, and a jacket with patches on the elbows. He seemed very patrician.

Andy hired Gene to create and run an inventory department because they were losing inventory, they couldn't keep track of it. Gene came down to material handling and because we handled inventory all day long he interviewed me and Kai. He pulled me out of material handling to be in the inventory department.

Gene created a system of inventory called cycle counting. The goal was, you count 5% of your total inventory every day. It's a different 5% each day. So, as time goes by after three to four months you have a very accurate view of your inventory.

I did inventory with three other people and very quickly, Gene said, “Well, Marshall, we're going to make you the department head.” And I said, “I thought you were the department head.” He replied, “No, I'm the supervisor.” Because he just loved to supervise by sitting at his desk and looking out the window. But he was a very bright guy, and he would take all the information and write it down in these big ledger books, like you see in the old west movies. After a few weeks I said “Gene, we're a computer company, why are we using ledgers?” He said, “Because I know how to use ledgers. But, I'll tell you what. You come in at 8, instead of 9, and you work from 8 till noon, teaching yourself how to computerize our inventory. And then you do your counting. I'll talk to you in a few months.” ...

To computerize the inventory I used dBase II on a Kaypro 10. The way it worked was that Andy Kay wanted the inventory reports every morning so the whole inventory department was oriented around producing those reports for him so that's what I did for over a year.
(Interview with Marshall Mosley)