JUST IN TIME APPROACH IN INVENTORY MANAGEMENT

ABSTRACT

Quality improvement and costs control are vital to organizations for work performance enhancement and fulfilling customers’ requirement. Inventories that are stored in large amount of quantities will result in waste and space usage. One effective solution is using Just in Time (JIT) concept as a method to reduce costs, improve quality and meet the ever-changing customer needs. The adoption of Just in Time (JIT) concepts seems to be the most effective way to overcome these circumstances. JIT is management philosophy that emphasizes on eliminating waste and increase productivity. The main purpose of this research is to find out whether the implementation of JIT would reduce the inventories at Electronics component industry especially at the parts producing stamping of FCM. This research is done by case study. Therefore the data collection would be using secondary data which is the documentation from FCM itself and also via observation. The data were analyzed by doing the comparison before and after the implementation of JIT using Microsoft words excel. From the analysis that had been done, the implementation of JIT had increased the inventories management at the stamping parts production. As the conclusion, the implementation of JIT in the inventory management at the parts production stamping at Electronics component industry had successfully reduce the inventories level while improving the inventory level.

Keywords: Stamping Production, Just in Time, inventory management, electronics component industry.

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Supply Chain Inventory Control: A Comparison Among JIT, MRP, and MRP With Information Sharing Using Simulation

Abstract: Logistics or supply chains play a central role in effective management. Inventory control systems play a significant role in managing supply chains. This article provides engineering managers with guidelines to choose a cost-effective supply chain inventory control system through analyzing push inventory systems (MRP), and pull systems (JIT). Simulation modeling was used to build and analyze the supply chains with stationary and cyclical demand patterns. The article indicates the main variables that should concern the engineering manager to choose between MRP and JIT. The paper concludes that because JIT reduces the holding cost, it becomes a more cost-effective system at a wider range as the demand level increases. The results also show that when information is shared across a supply chain that implements a MRP system, the cost reduction is significant in comparison with no information sharing especially under cyclical and highly variable demand patterns.

Keywords: Supply Chain Management, Inventory Control, Just-In-Time, MRP, Simulation.

EMJ Focus Areas: Operations Management, Quantitative Methods & Models

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Scheduling Oriented Improvement of Kanban Card Resupplying In Logistic Systems at Automotive Industry

ABSTRACT

Kanban is a pull production system that is very useful in Automotive Production Industry. Logistic systems in automotive industry, tries to apply the best system of logistic to supply the production lines and stations by bringing the parts and all requirements in best quantity and timing in order to come off the JIT specifications. In this article we try to exert a sequencing concept in Kanban card rotations to minimize the line shortage of parts causes stop in production procedure. Minimizing the Resupplying Cycle Times in production lines lead to less quantity of shortages that’s one important purpose of lean production. We introduce an appropriate sequencing and scheduling objective function related to Kanban card rotations to minimize some criteria affects the line inventories and causes some improvements on probable shortages. To know the weights of each job we used the Shannon’s Entropy method combined with SAW decision making method and we solved the sequencing and scheduling problem with total weighted tardiness objective function, using VNS heuristic method. To show the improvement and positive effects of our method we presented a real world case study and applied our model to a real world case study to observe the improvements in backlogs and tardiness in Kanban resupplying. Finally we presented the achieved improvements.

General Terms Sequencing and scheduling, Shannon’s Entropy, Pull production systems.

Keywords  Kanban, Just-in-Time, Production Systems, Scheduling, WSPT

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Material Requirement Planning in Aircraft Maintenance

ABSTRACT: 

Aviation field always come across a common issue throughout the world while planning their materials in inventory. Cost of maintaining unwanted inventory can hit the revenue of the airline operations. So a near optimal solution is preferred for achieving this. Materials planning can be divided into two models i.e. stochastic and forecasted model. Most of the airlines throughout the world follow stochastic models such as Max-Min, Reorder point (ROP) method, etc. with the aid maintenance software packages widely available in market. It is found that they try to fit the same methodology in almost complex dependent demand products in aviation where demand is discrete. The appropriate method for this scenario i.e. Material Requirement Planning (MRP) is found to be not considered. MRP is nothing but a computerized inventory control and production planning system which helps in scheduling the planned order releases along with appropriate lot sizing.

Keywords: Inventory control, Maintenance, Materials, Material Requirement Planning (MRP), ABC analysis.

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