motorcycle parts inventory management system - ToKnowPress

MOTORCYCLE PARTS INVENTORY MANAGEMENT SYSTEM Ailada Treerattrakoon Department of Industrial Engineering, Faculty of Engineering, Kasetsart University, Thailand [email protected] Tanaporn Lersbuasin, Department of Industrial Engineering, Faculty of Engineering, Kasetsart University, Thailand [email protected]

Abstract: The objective of this study is to design an inventory management system for motorcycle parts manufacturing in order to control inventory of raw material, forecast demand and schedule production planning. The system includes storage for inventory, an indicator for monitoring the motorcycle parts and reporting the level of current inventory of the items. The integrated information on the status of inventory is used to decide whether an order for the inventory should be made. This system helps to keep track the flow of products and supplies faster and reduce the total inventory cost. Keywords: motorcycle parts inventory, inventory management, inventory system, production planning

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1. INTR RODUCTIO ON mpetition in small s and medium m enterrprises in Th hailand. Prod duction plan nning and There iss a high com control are a importantt tools to opttimize utilizattion of capac city, time and d cost of prod duction. A ca ase study of motorrcycle part manufacturer has sufficien nt labor, mac chine, experie ence and skiill, but lack of o efficient management system m causing production eff fficiency is not n high. Ma ake-to-stock production has h been epreneur’s experience e in ncluding raw w material orrdering and production schedule. s applied due to entre ntory management syste em which pro ovides inventtory record and status to integrate There is not an inven mation in order to make a good decisiion for the en ntrepreneur. all inform med to design the inventory manag gement systtem to recorrd inventory, present This ressearch is aim inventoryy status an nd inventory shortage warning, w inc cluding foreccasting raw material input. The inventoryy manageme ent system design is deve eloped to be e easy use an nd appropria ate for motorc cycle part manufaccturer. All invventory reco ords have be een applied to t forecast raw material input, imple ement the inventoryy manageme ent system, determine raw r material reorder point and production sched dule, and estimate e cost for eacch product.

2. PRO OBLEM AN NALYSIS e than 774 products. p The e main raw material is aluminum a The mottorcycle partt manufacturrer has more which ha as at least 11 10 types. Pro oduct characcteristic is anodized aluminum as figure 1. Figure 1:: Anodized alu uminum

Source: A case study of o motorcycle part p manufactturer

n 945,000 pie eces of workk in process (WIP) ( inventtory. Productt cost has ne ever been There arre more than calculate ed. Make-to--stock produ uction is bassed on entre epreneur’s decision. d Pro oduct groups s can be categorizzed by dema and as figure e 2. Figure 2:: Product grou ups’ demand

Source: A case study of o motorcycle part p manufactturer e 42 CNC ma achines which h are 14 CNC C turning mach hines with fee eding, 13 CNC C turning mac chines, 15 There are CNC milliing machines, 10 drilling ma achines, and 3 cutting mach hines with layo out as figure 3 3.

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Figure 3:: Machines layyout


f raw matterial to finish goods is as s figure 4. Production process from Figure 4:: Production process p


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3. THE E INVENTO ORY MANA AGEMENT T SYSTEM M DESIGN entory manag gement syste em model is as figure 5. The inve Figure 5:: The inventorry managemen nt system mod del


aterial inventtory and non-anodized products inv ventory shou uld provide sstock status s, reorder Raw ma point, sa afety stock, economic e prroduction quantity (EPQ)), and econo omic order q quantity (EOQ) which can be accessed a via a computer network in the t motorcyc cle part man nufacturer. W When custom mer order arrives, types t and qu uantities of required prod ducts will be converted to o types and quantities off required raw matterial to fulfilll customer order and satisfy safety y stock. Prod duction time will be estimated to schedule e production planning. The designed inventory management m oped in 3 system has been develo Excel file es.

3.1. Raw R materrial ng, warning, and a forecastting inventory y of raw mate erial status. Capabilitty: Presentin uantities and d date of rece eiving and ussing raw matterial (in and out). Input: Qu B saffety stock, EO OQ, and mon nthly forecas sting of raw material. m Output: Balance, at sheet, and d Kg Mat There arre 3 spread sheets in this file which are AddmattData sheet, Balance Ma Data she eet. Data sheet AddmatD AddmatD Data sheet iss used to reco ord quantitiess and date off receiving an nd using raw material as figure f 6.

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Figure 6:: AddmatData sheet


Balance Mat sheet p bala ance of raw material m as fig gure 7. Balance Mat sheet presents Figure 7:: Balance Matt sheet


D sheet Kg Mat Data Kg Mat Data D sheet pre esents foreca asting of raw material as figure 8.

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Figure 8:: Kg Mat Data sheet


3.2 Work W in pro ocess inven ntory ng, warning, and a forecastting inventory y of non-anodized produccts status. Capabilitty: Presentin uantities and d date of rece eiving and ussing non-ano odized produ ucts (in and o out). Input: Qu W in proccess balance e, reproductiion point, sa afety stock, and a economic production n quantity Output: Work of non-anodized prod ducts. entory file will w present re eproduction point, safetyy stock, and economic production Work in process inve dized productts as figure 9. 9 quantity of non-anod Figure 9:: Work in pro ocess invento ory output 1. Add A EPQ line (Auto ( run)

2. Add Re eproduction Po oint line 3. Add A SS line


3.3 Production P input ning producttion schedule e and summ marizing required raw m material and required Capabilitty: Determin productio on time. uantities of required prod ducts and pro oduction schedule. Input: Qu uired production time, total usage off raw materia al in selecte ed period, Output: Required prroducts, requ me in selected d period. and total usage of prroduction tim his file which h are PRD In nput Order sheet, s BOM Database sh heet, Mat There arre 4 spread sheets in th Databasse sheet, and d PRD Orderr Print Out sh heet.

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PRD Inp put Order she eet put Order sh heet is used d to record and a determine productio on schedule. When adding data, PRD Inp system will w calculate required pro oducts, requiired production time as figure 10. 0: Adding data a in PRD Inpu ut Order she eet Figure 10

1

Ad dd Da ata


aving file, all data will colllected in dattabase to calculate total usage of raw w material in selected When sa period and total usag ge of producttion time in selected s perio od as figure 11. Figure 11 1: Total usag ge of raw ma aterial in sele ected period and total usa age of production time in selected

period

Material Total Mat. Requir rement 45.49 m.


After tha at the inventorry management system will present produ uction status as a figure 12. Figure 12 2: Production n status


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Production operator can print outt production order as figu ure 13. Figure 13 3: Production order


4. SUM MMARY a the inventory mannagement sysstem, recordin ng, calculating g, and checkin ng status were e made by Before applying man that took long tim me and was difficult d to devvelop. After applying a the inventory maanagement syystem, the motorcyccle part man nufacturer ha as necessaryy database which w provide es production n schedule, inventory status, to otal usage off raw materia al and total usage u of prod duction time,, and other n necessary infformation to help workers w workk faster and entrepreneu ur make a rig ght decision due d to updatted informatiion. Time to checkk inventory status s has been b reduce ed from 30 min m to 3 min n. Time to d determine production schedule e also has be een reduced from 30 min n to 3 min.

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motorcycle parts inventory management system - ToKnowPress

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