Increasing Efficiency on Inventory Management: A Case Study of A Kan Chang

Abstract

The objectives of this research were to 1) study and analyze the grouping of spare parts by applying FSN Analysis theory, 2) design and improve the area of ​​storing group F (Fast moving) spare parts, and 3) increase efficiency in terms of reducing the disbursement time of Group F (Fast moving). There were no model labels and codes, resulting in waste of dismantling unwanted parts and wasting time storing spare parts in their original place, resulting in time-consuming and error-prone parts disbursements. Therefore, the researcher had a solution by grouping spare parts into categories by applying FSN analysis theory, improving the spare parts placement system by fixed positioning, and applying visual control techniques to facilitate disbursement to increase disbursement convenience and work efficiency.

     The results showed that by grouping spare parts using the FSN Analysis method, spare parts can be grouped into 62 items from Group F, 23 items from Group S, and 25 items from Group N, and the replacement of spare parts in the inventory using a fixed placement system. Parts with a large turnover and in group F were placed as close to the exit as possible for convenient disbursement. Group S and Group N were placed at a location farther from the door, respectively, and performance tests showed that the total average disbursement time before improvement was 32.03 minutes, after improvement it was 25.12 minutes, and the disbursement time was reduced by 6.90 minutes decreased 21.57 percent. It has been shown that improvements based on the approach taken by the researcher improve efficiency.