DYO-Sipes

IMPROVING MANAGEMENT
OF
RAW MATERIALS
Pelinsu Kafadar
Merve Yıldız
Önder Bulut
Noyan Çakar
Utku Nihat Tekin
Özge Büyükdağlı
1
• Information about DYO and Its Processes
• The Current Inventory Management System of DYO
• Observations and Symptoms
• Problem Statement and Goals
2
• DYO Paint
• DYO Inks
• DYO-Sipes
• DYO Balkan SRL
• Kemipex
• Construction Paints
• Furniture Paints
• Industrial Paints
• Automotive Paints
• Nautical Paints
• Inks
• Polyester
• Total Capacity is 240.000 tons/year .
• They have 1000 types of product, 3200 types of package, 60.000 types
of color.
3
Industrial Paints
35%
Construction Paints
DYO
Others
65%
23%
Others
77%
Automative Paints
Furniture Paints
13%
15%
85%
DYO
DYO
DYO
Others
Others
87%
4
•
•
•
•
Since 1997
24.000 m2 closed area
67.000 m2 total area
Production for 5 sectors
• Exports 40 different countries
(%7 in Total Sales)
• Double Shift Capacity (tons/year) : 70.000
5
Binding
Materials;
Drying, Adhesion,
Hardness, Elasticity,
Resistance
Solvents;
Fluidity,
Surface Smoothness
Pigments;
Color, Fill Power,
Paternalism
Additives;
Fast drying,
Smoothness, UV
Protection etc.
6
Bindings
Stabilizer
Solvents
Rheology Agent
Padding
Dispersion Agent
Defoamers
Pigment
Mixing
Dispersion
Process
End
Item
Filling
Store Tank
7
Sales Order
Marketing
Customers
Purchasing Department
Sales Department
Demand Forecast
Purchase
Order
Order
Information
Distribution
Order
Production
Plan
Manufacturing
Raw
Materials
Planning Department
Financing Department
Payment
End Item
Raw Materials
Warehouse
8
Supplier
Customers
Sales Department
Raw Material
Purchase
Order
Purchasing Department
Demand Forecast
Product Based
Order
Manufacturing
Warehouse
Planning Department
•
•
•
Adjusts forecasts
Runs MRP
Determines net requirements
Raw Materials Replenishment
9
Supplier
Varying Demand
random demand
promotion
seasonality
forecast errors
INVENTORY
INVENTORY
INVENTORY
differing lot
sizes
differing
production
rates
order quantitiy
discounts
disconnected
schedules
Unsynchronized
Processes
consignment
production setup
times
Lead time
Variability
minimum order
quantity
unreliable
quality
Variability in
Supply Process
10
• %90 of Raw Materials are from Europe.
• Lead time changes between 1 and 14 weeks.
60
54
50
40
30
20
19
15
11
10
2
0
[0,7]
[8,30]
[31,45]
[46,75]
[75,100]
Days
percentages of materials
11
•
•
Staff Dependent System
Based on Experince
Difficult to Sustain
Lack of Methodological Approaches
• No Classification of Raw Materials
• No Structured Inventory Policies
i.
ii.
iii.
No estimation for lead time
variability
Undetermined safety stock levels
Review periods
23%
inactives
1137 of Raw
Materials
77%
257 Inactive
Raw
Materials
Monetary Value : 1.102.617 TL
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Classification Factors & Constraints
•
•
•
•
•
Unit price
Demand
Lead Time
Business Impact
Number of Substitutes
•
•
•
•
Minimum Order Quantity
Budget
Contract Terms
Storage Space Capacity
Classification and classbased inventory policies
Optimization of the
policy parameters
13
Inappropriate raw material inventory management either
exposes excess inventory which causes inactive raw
materials and inventory costs or low level of inventory
that suspends production with shortage cost.
Determining the Optimal Inventory Policies for
Different Raw Material Classes
14
• Inventory Turnover Rate
• The Monetary Value of Average Raw Material
Inventory
• The Frequency of Stoppages, Slow-Downs, Delays in
Production
15
Thank You
16