01-09-2014, 09:45 AM
The MAHLE Group is one of the 30 largest companies in the automotive supply industry worldwide which was founded in 1920 in Stuttgart Germany. With its two business units Engine Systems and Components as well as Filtration and Engine Peripherals, MAHLE ranks among the top three systems suppliers worldwide for piston systems, cylinder components, valve train, air management, and liquid management systems. The Aftermarket business unit serves the independent spare parts market with MAHLE products in OE quality. The Industry business unit combines the MAHLE Group’s industrial activities. These include the areas of large engines, industrial filtration, as well as cooling and air-conditioning systems. The Group’s key data are: • over 140 production locations on four continents • over 65,000+ employees and sales of approximately 10 billion Euros in 2013.
PURPOSE OF INVENTORY REDUCTION
The main purpose of inventory reduction is to reducing the COST (work in process). and in the direct way we can say "save the money of company from blockage in work in progress." Companies today must be fast and nimble enough to react quickly to changes in customer demand and do it with little inventory. Gone are the days when manufacturers could stockpile large quantities of raw materials, load up the shop floor with work-in-process and pack warehouses with finished goods. The old ways caused erratic and long lead times, high costs and required too much cash for working capital. Techniques and Technology usage:- • Collect the data of inventory of 1 month of all three production plant (AIR PLANT, OIL PLANT & FUEL PLANT) This data gives the actual picture of WIP inventory of production plants. In the begining inventory of Air plant (air filter production plant)= Rs. 38.79 lac. Oil plant (oil filter production plant) = Rs. 61.43 lac. Fuel plant (Fuel filter production plant)= Rs. 53.90 lac. • SET UP THE WIP LIMIT Without limit nobody takes care The first step to reduce WIP inventory is to understand what is the actual level of WIP (WIP = work in process). You might think it is an easy job for you. You will just look into the information system and it will tell you instant WIP value for any manufacturing line with the accurancy up to 2 decimal points as you use very expensive system. But if you check the same figure a few hours later or if you do the next day, the situation might be totally different like in the chart below. In fact the WIP value is usually unstable. Look at the chart bellow. It is a part of one of our charts showing us WIP value at the end of each day.