VED & ABC Analysis of Inventories for a Wind Turbine Company

Abstract

The life in our body is as long the blood is flowing, the moment the circulation of blood is stopped (stagnant) the body becomes dead. The message is anything stagnant become dead or useless. The same mantra of the business organization also. In an organization the larger portion of the current assets is inventories. As long as the inventories are converted to finished goods and the cash realization is happening without any delay with the prescribed time frame the organization is moving forward. The movement the inventories are stagnated for a long period the inventory cost will kill the organization. There are many different inventories controlling techniques are used by different company depending upon their situation. Mainly automotive, FMCG, Pharmaceuticals companies adopted many different techniques. I have not come across any such research paper for wind turbine companies. The objective of this paper is to study the entire raw material inventory of a wind turbine company and give the solution for the optimization of inventory.The organization where I did the study is an assembly of Nacelle, Hub, and manufacturing of Blade. All other components are outsourced. The entire inventory system to be studied, and establish the ABC & VED analysis and merge both VED& ABC matrix analysis, Establish critical inventories to be focused by the top management for optimization of inventories. Such study will give a major focus by the management and control the inventories based on sales order and project installation. This will give major benefit to the organization.