MOTORCYCLE PARTS INVENTORY MANAGEMENT SYSTEM

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
1367
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.
1368
Figure 3:: Machines layyout
Source: A case study of
o motorcycle part
p manufactturer
f
raw matterial to finish goods is as
s figure 4.
Production process from
Figure 4:: Production process
p
Source: A case study of
o motorcycle part
p manufactturer
1369
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
Source: A case study of
o motorcycle part
p manufactturer
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.
1370
Figure 6:: AddmatData sheet
Source: A case study of
o motorcycle part
p manufactturer
Balance Mat sheet
p
bala
ance of raw material
m
as fig
gure 7.
Balance Mat sheet presents
Figure 7:: Balance Matt sheet
Source: A case study of
o motorcycle part
p manufactturer
D
sheet
Kg Mat Data
Kg Mat Data
D
sheet pre
esents foreca
asting of raw material as figure 8.
1371
Figure 8:: Kg Mat Data sheet
Source: A case study of
o motorcycle part
p manufactturer
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
Source: A case study of
o motorcycle part
p manufactturer
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.
1372
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
Source: A case study of
o motorcycle part
p manufactturer
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.
Source: A case study of
o motorcycle part
p manufactturer
After tha
at the inventorry management system will present produ
uction status as
a figure 12.
Figure 12
2: Production
n status
Source: A case study of
o motorcycle part
p manufactturer
1373
Production operator can print outt production order as figu
ure 13.
Figure 13
3: Production order
Source: A case study of
o motorcycle part
p manufactturer
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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