Department Wise Inventory Case Study

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6. Analyses 6.1. Inventory Areas in VSM Before designing future state map, we need to analyze the current state deeply. Let’s have a look at the inventory areas department wise. Areas No. of Days of inventories Cutting 2.72 Stitching 10.5 Washing 10 Finishing 2 Dispatch 1 Table 10(|Department wise inventory (Days) For better analyses, we are arranging data in sequence, so that major portion of inventories may be separated. For this we used Minitab tool, named “Pareto Analyses” Figure 9(Pareto Analyses of Department wise Inventories) We have summarized all department in one chart, and analyzed it on 80-20 rule and came to know that we have 2 major areas which area causing 80% of our total inventory in whole production flow, which are listed…show more content…
1. Machine Break down 2. Absenteeism 3. Material Handling & Change over problem 4. Late Arrival of Worker Above four is 80% cause of high inventory in stitching department. Let’s discuss each issue to some extent to get basic information to get its solution. 6.1.1.1. Machine break down Whenever the machine break down arrived they have to check their stock and go for decisions to run orders whose complete resources are available. The issue has a greatest frequency of 29 in one month. Especially those machines which are very special and its breakdown may cause to shuffle orders. If one machines gets out of order, the next operation do not suffer feeding issues due to process inventory. People have made traditions to work with huge process inventory, so that they may hide stoppages to machine repairing. 6.1.1.2. Absenteeism The second major reason of compiling inventories came in front of us, was absenteeism. The frequency of this problem is 27 in one month. Workers get absent and the cause of huge productivity losses in different sections of stitching. Once an operator gets absent for a long period, the management has to work with inventory to balance the operational feeding issues. As alternate workers cannot produce as much as the skilled labor can, so inventory get…show more content…
Material Handling & Change over problem The third major reason is material handling and change over problem, the issue causing to inventory to be compiled in different areas of stitching. The frequency of this issue is 25 in one month. Whenever the work order changes, the new work order have new specifications, new methods, new styles and new machinery settings. Due to less preparation, the new work order gets blocked in inventory queues. It’s their internal problem too, because stitching manager wants to run the work order with minimum change overs, so he always has a choice to select desired work order (work order having similar specifications), due to huge inventory stock. The inventory stock helps manager to select his choice, so that change over time may be minimized. When the inventory is low then the manager has to accept changeover loss, multiple times in a week. 6.1.1.4. Late Arrival of Worker The late arrival of worker is fourth major reason behind the situation of huge inventory level in stitching department. The issue arose 14 times in one month, which was disturbing production. Whenever the inventory gets low, workers very next to late coming worker disturbs very much, as he is unable to get work from his previous operation/section. So inventory helps worker to work until or unless the late worker come and start his working, or supervisor may arrange alternate machine

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