Improving Inventory Turnover In A Fiber Optics Manufacturing Project
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Date
2014
Authors
Huang, Hai
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
High inventory has been one of the unstable operation factors in fiber optics
manufacturing projects in VTR Penang, a contract manufacture. This case study looks
into the particularly high inventory turnover days issue encountered in a newly launched
fiber optics project-MI5K project in VTR. MI5K is a high mix low volume
manufacturing project with 60 days inventory turnover target， however the actual
performance is 82 days. The study begins with understanding the existing workflow
together with the business intelligence system. Current issues such as lack of business
intelligence system integration, high reject rate, long failure analysis lead-time, and
material over purchase and shortage were discussed. To further understand the potential
root causes of those issues, a comprehensive analysis is performed using interview, fish
bone, Parato, Benchmarking analysis tools. The goal for this case study is to find out the
possible solutions to improve the inventory management process in order to achieve the
60 days target.
Description
Keywords
High inventory turnover days issue encountered , newly launched fiber optics project