Original Date: 10/27/2003
Revision Date: 01/18/2007
Information : Stockroom/Inventory Management
Auto-Valve, Inc. implemented a Manufacturing Resource Planning system that has provided control of the company’s inventory for a better organized stockroom.
Previously, Auto-Valve, Inc.(AVI) did not have adequate control over parts in its stockroom. Parts were randomly stored by category in an unsecured area. Springs were stored with other springs, fittings were stored with other fittings, and mixed parts were a frequent occurrence. An assembly’s bill of material did not document the quantities of each part required, which meant that the assembly drawing had to be pulled to determine how many parts were required for a kit. Elastomers were not tracked for age, and parts were not identified to the batch from which they were produced. Families of parts were not grouped, and obsolete parts were not identified.
In 1999, AVI implemented a Manufacturing Resource Planning (MRP) system, which facilitated the organization of parts in the stockroom. Parts are now stored in a secured facility, arranged numerically by part number, and segregated to avoid mix-ups. Quantities on the bill of material are automatically generated by the MRP system, and elastomers have a process for age control. The part batch is identified on a stock card and kept in the stockroom to allow tracking of problems to the correct batch. Obsolete parts are continuously identified and removed from the stockroom.
Implementation of the MRP system allowed AVI to gain control of its parts inventory and reduced the size of its stockroom by a factor of three. In addition, the need for yearly inventory counts has been eliminated.
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