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The Study On Fendou Group Automotive Component Plant Inventory Management

Posted on:2011-08-23Degree:MasterType:Thesis
Country:ChinaCandidate:Z LiFull Text:PDF
GTID:2189360305456879Subject:Business Administration
Abstract/Summary:PDF Full Text Request
In 2008, U.S broke out econocic crisis, with the fianancial earthquake, the wave influnced autobomile industry greatly. The bankcrupcy of carmaker giant GM and loss of excellent management Toyota, all of these forced automobile industry to opitimized their supply chain, to seek opportunities in crisis,the source of existence and development is Cash. Cash is king, who occupy more money,who can gain priority in restructure. For most China joint venture component supplier,they haven't finalized 100% localization, has long lead time,if by seafreight, the leadtime will be 56-70 days.Yet due to crisis, the customer forecast has huge fluctuation from 15% to 200%, as "whip effection",inventory occupy large percetenge cash, as a result, all plants take reducing the inventory as priority to get cash.Furthermore,if no influence economic crisis, large inventory hide plant management problems; they hide "under iceberg"efficiency,quality,breakdown etc.problems which is not good for plant improvement.Logistic is to manage inventory, the article make analysis of flows among customer, plant, and supplier, ERP application, control leadtime, control material and info. flow to find root causes and to improve.1. Clarifying customer demand and leveling productionNo matter what kind of inventory, they all come from final customer demand, we can better control each process inventory only after we clarify customer demands. Is customer forecast reliable? What's firm order? Is it not reliable in quantity or in variance? What's the difference between forecast and actual demand? How should we use the customer forecast? For purchasing from suppliers? For production? For delivery? After grasp the rules of customer demands in quantity and variance, then plant make won stable production plan. Levelling not only level in quantity but also level in variance.For any production system, to reach leveling, the detailed plan is key coposition. The planning has annual plan, monthly rolling plan, weekly plan,it is not instructive plan, it is frame plan between different departments for material and toos.In shopfloor, it is issue production order through leveling board and KANBAN. Monthly order and weekly order is basing on customer demand, in view of fluctuation analysis to decide production qty. and variance.It is not only transfer the customer order, the process like filter to smooth the fluctuation. If the plant strictly follow the plan, the order to supplier will also be leveled, it will stabilize supplier delivery and it will also to improve supplier delivery performance.Monthly production plan PIC is leveling for production family, weekly production plan PDP is leveling for each part number, and it levels for 5 weeks production planning to each day even to each shift to assure every shift to produce same quantity and to produce following same takt time.2 Supplier leveling and optimize logisticLevelling customer through PIC monthly plan and weekly plan, after freezing PIC and PDP, it is base for supplier ordering and level supplier delivery.No matter F company demand how many parts, the supplier should deliver the exact part and qty basing on demand.By doing so, it also stabilize supplier MPS,manifest is binding info.between plant and supplier, and it also traces supplier delivery performance.On the basis of stabilizing supplier delivery, it has 3 steps for inventory reduction internally:undertand inventory, control lead time, reduce inventory. then to make just needed inventory calculation, it includes 4 parts inventory calculation(1) Operational stock:stock between 2 deliveries, the levers are transporation frequency, and batch order qty.(2) Internal stock:line feeder delivery loop, the control points are packing quanity and loop size(3) Transportation risks:stock between 2 deliveries, the levers are transportation frequency and transport timeCustomer fluctuationAfter maintaining parameters, the data module will give visual picture for further analysis and action taken3. Organize internal flowDue to customer fluctuation and internal quality equipment problem, it is difficult for us to make ideal pull system. Fengdou implement replenish pull system, they transfer PDP in leveling board. Basing on customer fluctuation to define pool stock, basing on product reference and change over time to define shopstock quanity, basing on delievery frequency and preparation for TPA to define TPA quantity. In normal situation, operation to withdraw parts from shopstock to TPA; if failed to withdraw, then withdraw from pool stock then to TPA. In such kind of pull system,it not only meet customer delivery but also keep internal stability and inventory optimization.4. ERP parameter maintain and applicationCustomer demand and supplier manefests are all calculated from MRP,the input parameter is very important,the article make detailed introduction for key point. Inventory accuracy decides ERP system reliability, introducing cycle counting method.5. Control leadtimeTo eliminate 7 waste in each processes, it will control and shorten production lead time1) Overproduction2) Waitting3) Transportation4) Useless operation5) Inventory6) Motion7) Non-qualityFrom manpower, material, machine,method to shorten lead time.Manpower:U line design,1 operation to control several machines, the machines should have auto-eject, the operator should have polyvalence and polycompetence.Material:1 piece flowMachine:Machine should follow production order, flexible lineMethod:SMED, small batch4.Control material and info.flowMaterial and info. flow is an analyzing tool, it appers in drawing for the shop floor each process details; to identify problems then to find improving area. Material flow to identify stagnation where existing stock, how materials move from one place to another, personne, frequency, quantity. Info. flow to identify sender and receiver, how the info. send, is it via KANBAN, sequencing order, or programme. Is it flowing for the info.?Inventory control is not only logistic department issue, it is the result of many factors.How to control inventory, it is also an issue of how to improve the plant management level.Inventory hides many management issues such as quality, equipment and production organization.
Keywords/Search Tags:Automotive
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