A study on material management at an aerospace production

Ahamad, Mohamad Naubfal (2014) A study on material management at an aerospace production. Project Report. Universiti Teknikal Malaysia Melaka, Melaka, Malaysia. (Submitted)

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Abstract

In every manufacturing organisation holds stocks of some kind. As these stocks are expensive and need careful management to allow for variations and uncertainty in supply and demand. Problems of inventory control are almost universal and has developed many approaches for overcome these problems. This study is directed to propose appropriate tools and techniques for better inventory management of high inventory cost at Company X. This study aims to propose solutions for productivity improvement at Material Management unit in Aerospace production. The aim is supported by three objectives: i) to identify high inventory cost items and its effects to production performances, ii) to analyse the root-causes of high inventory cost, iii) to propose solution for avoiding / overcoming the high inventory cost. Ishikawa Diagram and FMEA have been used to analyse the root-causes of the high inventory of incoming material. Result of the analysis shows prepreg has been identified as Class A item of the incoming material which contributes to the highest inventory cost in Company X. The main root-causes of high inventory cost of prepreg have been clarified as inappropriate SOP of Material Ordering System which determined through the highest RPN score of FMEA analysis. Overall, this study has proposed solutions such as SOP, Visual Management, Space Utilization, Facilities Planning, and EOQ models that are the tools and techniques to reduce high inventory cost in Aerospace production at Company X.

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