Introduction
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Software Development/Manufacturing (and Factorio) = Inventory is bad |
What is inventory
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Wikipedia: "the goods and materials that a business holds for the ultimate goals to have a purpose of resale" My generalisation: "Finished Products or Components not generating value" |
Inventory in software development
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Either developed features or stages of development not yet in the hands of consumers Waterfall: Requirement → Design → Build → Test → Release Agile: Grooming → Sprint → Release Shorter release cycles decrease the inventory of a software development team |
Inventory as Asset or liability
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Asset In terms of financial reporting inventory is listed as an Asset on the Balance Sheet Liability
Value Value is generated when a consumer is using the product |
Example
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Physical: Christmas decorations → Demand in December. Production all year
Difference between graphs is Inventory Software: Annual release → Demand all year, but only released annually → Extra releases... |
Smoothen production
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A key argument of maintaining buffers/inventory is to equalise the production over time by compensating for fluctuations → hiding Inventory evens production → Inventory hides the cause of variation
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Reading recommendation
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The Toyota Way by Jeffrey Liker Try Audible.com with 1 Month Free Trial |