Problem Definition
In Body Station, according to the current order policy, instant production inventory level is kept high due to scheduling problem. Bound to that factor, route movements of forklifts become inefficient and this leads to high safety stock level and inventory cost.
Scope
Our priorities are A class materials and suppliers who send large volume of materials. A class materials have the highest priority because they reserve the largest area in the inventory space in terms of volume. ABC categorization chart can be seen.
Second priority will be given to suppliers who send in large volumes. The large volume vendors affect the production and warehouse management directly as they carry large volume of supply. Component replenishment policy of these suppliers should be planned according to JIT principles. By this way, the inventory level will decrease and the inventory space can be used more efficiently.
Symptoms and Complaints
The symptoms and complaints are analyzed and two sub-headings are offered. Both of them are related to each other and proposing a solution to one contributes to the other problem as well.
High inventory level
The current component replenishment policy and the daily scheduling of this policy is based on Kanban principle, does not match properly with demand changes due to manufacturing planning. This situation causes large volume of material in inventory space, as materials do not arrive at the factory in the required order and the inventory holding cost increases accordingly.
Inventory complexity
Due to large volume and variety of materials, TOFAŞ has inventory complexity problem. As different kinds of materials are not sequenced in the storage area according to the JIS policy, forklifts have an efficiency problem while carrying these materials to the production line, as finding and transferring them is a time consuming activity.