In the SMD Production Department, tiny devices, like chips, transistors etc. are mounted on the circuit boards by the use of the SMD (Surface Mounting Device) machine. This SMD machine takes the inputs (tiny devices) in forms of reels. Reels of the desired material is loaded to the machine and software does the rest of the job.
As the SMD Machine needs materials in reels, the requirement for a separate warehouse, other than the Raw Materials Warehouse, occurred. The cause of this requirement is that the shelves of the Raw Materials Warehouse were not suitable for storing this kind of sensitive devices and that finding the material you need would be very time consuming as there are lots of reels to search.
For the reasons mentioned above two other warehouses are built. One is the SMD Inventory, the other is SMD WIP Inventory. These warehouses consisted of stocking machines called KARDEX. KARDEX is a machine that could be mounted inside a wall and that could store and retrieve material in its trays.
The model of KARDEX used in the SMD Inventory uses a robot arm to fetch the tray required, and the model of KARDEX used in SMD WIP Inventory uses a chain system to retrieve the tray required.
When a work order is opened for the parts produced on SMD Machine, the work order form is first sent to SMD Inventory, instead of Raw Materials Inventory. In SMD Inventory, requirements for the work order is retrieved from the KARDEX and sent to SMD WIP Inventory. That is, the usage of SMD Inventory is in the responsibility of the Production Planning Department. After the requirements of the work order is sent and loaded to the KARDEX in the SMD WIP Inventory, Production Department retrieves the materials it needs to produce the work order from SMD WIP Inventory. Not all the requirements of the work order must be retrieved at once, partial retrievals are also possible. That is, the usage of the SMD WIP Inventory belongs to the Production Department, but the responsibility of the SMD WIP Inventory belongs to the Production Planning and Control Department. Material retrieval process can be seen on FIGURE PD.1 below:
FIGURE PD.1 MATERIAL RETRIEVAL PROCESS
As the raw materials of the SMD Machine are stored in reels, when work orders come to the SMD Inventory, the materials for more than one work order could be transferred to the SMD WIP Inventory in the same reel.
Kuiper Leda lacks an effective Inventory Management to handle properly the increase in demand of stock and production. An inventory management plan would be capable of forecasting errors in production, client-required service levels, total lead time in manufacturing a unit or batch of the product, and demand priorities. Inventory control is a challenge currently because of the size of Midland Motor's order. In order to meet the demand the company needs to increase the inventory which increases the inventory costs. KL have an opportunity of using the Just - In - Time method of inventory control which eliminates waste by making the resources and labor available only in the time and amount required. It will help increase productivity, product quality and work performance while saving inventory costs for the company. (Curtin, 2008). Kuiper Leda also needs to keep in mind that they will still have to fill orders from other clients that have previously placed orders or even new customers.
Riordan Manufacturing can continue to expand by reducing the inventory cost of raw materials and finished goods. Riordan currently has a legacy MRP Information System (IS) in place, and this project provides an excellent opportunity to upgrade the infrastructure to allow for a more cost-efficient way to track inventory.
Since Fastenal is in local neighborhoods, they are able to stock items minutes away and ensure that people generally have the right amount of products, when and where they are required. As claimed by Fastenal’s website, they are perceived as “the industry innovator in vendor managed inventory (VMI) and industrial vending.” Vendor managed inventory is inventory that is essentially managed by its supplier. This keeps competitors at bay because whenever it is time to replenish the machines, the vendor determines that. Most companies manage their inventory on their own; therefore the burden of inventory is on them. Fastenal relieves companies from that burden and makes their lives much easier. In the Industrial Vending case study about Fastenal and Apex, it expresses that the CEO of Apex said, “the machines can transmit real-time data to order replenishment of supplies automatically, as well as determining whether a worker needs to use the part or has used too many of the same part in a certain time period.” Two Industrial Vending machines that Fastenal produces are the FAST 5000SM and the FAST Auto LockerSM. In accordance to the Industrial Vending case study, “Through Fastenal’s Fast 5000 vending machines and lockers, floor workers can avoid the long processes and treks to the supply store by walking to one of the five vending setups within the manufacturing area, swiping the employee badge they use
Based on future supplier contracts, shortening lead time for delivery of parts and materials establishing leaner processes, namely addressing wastes identified through implementing a Just-In-Time (JIT) system. A centralized wharehouse system, co-located near the manufacturing plant will reduce shipping and transportation costs or look for larger space with warehousing capacity. Savings, significant enough will be a factor if space with warehousing falls within the
Säfsten, K., & Winroth, M. (2002). Analysis of the congruence between manufacturing strategy and production system in SMME. Computers In Industry, 49(1), 91. Retrieved on January 21, 2013 from EBSCOHost http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=7537328&site=ehost-live
h. As required for ESD components, place the material that was requested in a static-free container and label with a minimum of the part number and quantity.
Riordan Manufacturing’s inventory management and control system is split into three categories. These include raw materials receiving; manufacturing; and final product shipping. Each of those three areas requires improvement in the process through upgrades of existing computer systems. In addition, new computer and inventory tracking technology should be implemented to increase automation, reduce storage of materials costs and reduce errors in inventory tracking.
After extensive last minute digging, I finally found a manager who trusted me enough to supply me with the name of the inventory system that is used. Unfortunately for me this is all I could uncover from my employer, but it is a start. Wal-Mart uses the SMART system. Because of the way it is spelled I can only assume that it is an acronym. I have been searching for over an hour on Google.com and finally produced some meager results, but here they are.
Within the manufacturing sector, supply chain management is important since it involves many movements of goods, raw materials and finished goods. It is therefore important to maintain this free flow of goods with in the manufacturing industries to ensure that all goods are delivered on a timely manner (Ross, 2010). In manufacturing, there is need for inward movement & storage of raw materials, inventory for the work-in-progress, and finished goods movements. Further, finished goods that have been supplied can also be returned to ...
Some companies need to have a confirmed order to start making a product due to its attached cost and materials. Some businesses need to have high stocks due to the high demand of a product and by doing this they have always have the product to sell to the customers on time. Finally, some businesses found a smart strategy to set their supply chain on it, which is the ‘Just in Time’ (JIT) supply system, a strategy based on eliminating the waste that is linked to time, labour and storage space, (Vijay and Sadikot, 2016). In this way, they have just enough supplies and inventory to meet the demand and they do not have high volume of finished products in their stock rooms, which drastically help them to be super-efficient in their production, be fast and have more cash in their hands. On the other hand, operations who source globally are highly sensitive with this system. Moreover, operations with low volume of production and high variability will definitely face problems with this
FMS is a system that consists of numerous automated machine tools connected by an automated material handling system. Shorter lead times, meeting demand fluctuations, handling volume and variety, reduction in space and people and obtaining better control due to automation as in Fig. 1(a). FMS is larger than the flexible manufacturing cell, not only in the no. of workstations and floor area it may contain, but also in the number of supporting stations and equipment in the system, such as part/pallet washing stations, co-ordinate measuring machine equipments, storage stations and so on. Computer control system is also more sophisticated; this type of functions not found in the flexible manufacturing cell such as diagnostics and tool monitoring during the machining operations. The main disadvantage is that the initial installing cost and operational costs are high and it is necessary to have enough volumes to justify the use of
On the other hand a Mill uses a different process to create custom parts. It is a process of machining that uses rotary cutters to remove material from a raw work-piece, by advancing the work-piece in different directions and angles in relation to the axis of the cutting tool. This is the most commonly used process by machine shops today for creating parts to a precise shape and size in th...
The material master data includes some key components which enables it to operate efficiently. They include, the Purchasing group, MRP controller, Base unit of measure, Lot size, procurement type, etc
In the manufacturing stage, a variety of options are provided, catering to the demands and requirements of the customers. If managed properly, it reduces wastage and increases the availability of unused products.
The first order of business to address is the assembly line. The assembly line needs to be organized and systematic. It would be in the best interest for the workflow to also specify the appropriate number of workstations needed. I would suggest utilizing the strategies focused around balancing and perfecting the assembling processes of the Shanghai Production Facility owned and operated by Shuzworld. The goal of assemble and balance strategy is to create an effective layout that will allow the company to achieve production goals and compete with other market contenders. The major priorities of a business who is competitive are process, adaptability, consumer connection and condition of work being proper for the employees. When a proper work flow is assembled, these priorities can be meet.