Cycle Count Variance
Cycle count variance is the difference between the physical quantity counted and the quantity recorded in the inventory system.
What this term means in maintenance
Cycle count variance is the difference between the physical quantity counted and the quantity recorded in the inventory system.
Basic calculation
Variance quantity = Physical count - Recorded quantity
Variance value = Variance quantity × Unit value
Practical example
The system shows 12 bearings, but the physical count finds 10.
Variance = -2 bearings
Investigation
Possible causes include:
- Unrecorded issue
- Unrecorded return
- Receiving error
- Wrong unit
- Incorrect bin
- Damage
- Duplicate item
- Unauthorized adjustment
Approval
Inventory adjustment should follow investigation and approval rules.
Common mistake
Adjusting the balance without finding the cause allows the control failure to continue.
Related concepts
Related maintenance terms
Keep exploring connected CMMS, reliability, and maintenance planning terms.
Inventory Cycle Counting
Inventory cycle counting is the regular verification of selected stock items so inventory accuracy can be maintained without waiting for a full annual count.
Stock Accuracy
Stock accuracy is the degree to which recorded inventory quantities and locations match the physical spare parts actually available.
Parts Issue
A parts issue is the inventory transaction recording that a spare part or material has been supplied from stock to a maintenance job, asset, person, or cost center.
Glossary FAQs
- What is cycle count variance?
The difference between physical quantity and system quantity.
- What should happen after a variance?
Investigate the cause, approve any adjustment, and correct the process issue.
- What are common causes of Cycle Count Variance?
Unrecorded issues, returns, receiving errors, wrong bins, units, damage, and duplicate items.