Inventory reduction of requisition process in raw material warehouse: A case study of rice cooker factory

Abstract

Electrical appliance and electronics industry is an important industry in the Thai economy. Which is high export income, the exports increased rapidly and continuously. Considering the structure of the electrical appliances industry, Thailand is an important manufacturing base for multinational companies, especially Japan and South Korea which has resulted in the growth of electronics exports. The studied factory, which is in the electrical appliances industry. The researcher collected the data in the warehouse area where the parts were stored to wait for the assembly process. It is found that in requisition process, there are a lot of inventory (130,950 pieces) (the parts that are used for rice cooker model ABC-01 only). In the last November (2017), random sampling in the requisition process, the standard package (400 pieces/package) takes 12.42 minutes/set. And remaining package takes 32.25 minutes/set, it takes 2.6 times more than the standard package. From the current situation, the problems are the number of inventories exceed the demand and taking too much time in the requisition process, so the plan of countermeasures on the issue. Key response measures include the use of ECRS to eliminate unnecessary work and the creation of a standardized number of parts per package, tailored to fit the needs of the customer. As a result, the number of parts per package decreased by 4% / box, the number of inventory decreased by 3.08%, the taking time in the assembly process decreased by 62.05%, and the accuracy of the number of inventory is 99.80%