Action Plan Project

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William Paterson University *

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6700

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Industrial Engineering

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Jan 9, 2024

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docx

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10.22.23 Action Learning Project 202340-MBA6700-800 Brigette Bethea Colgate-Palmolive
The purpose of this project was to review my company’s storeroom inventory. Initially I had plan to look at both Colgate-Palmolive and Hill’s Pet Food (Dry and Wet Plants), but as I took a deeper look into the process. I realized that Colgate-Palmolive had no standard operating practice in place compared to Hill’s. Colgate-Palmolive currently holds over $20M in inventory vs. Hill’s $5M. One might ask why such a big difference in amount. This project will highlight the differences in each business, how we as a business can utilize our current integrator vendor Turtle and Hughes and my recommendations to help reduce our inventory levels. The storeroom is the nucleus of the maintenance department and site operations. One can go into the storeroom for a small object like a mop a large object like a motor for a production line. Ensuring that the current levels are set both the site and our vendor must work together. So that we don’t have any items out of stock we must maintain accuracy min/max levels. To get this project started I had to ask the following questions to both the sites and vendor. As I did not have all the history on the relationship I needed their support to ensure my role in procurement was beneficial in helping them. Who owns the inventory? What system are we ordering in? How frequent are cycle counts? o Is there a standard baseline across all sites? o Who is responsible for inventory inaccuracy? What is the min inventory level? What is the min inventory level? Average Consumption per month (Last 3 years / history available)? What is the lead time? What is the MoQ? Was this a part back from the line? Was this identified during Monthly physical counts? Who identified additional stock? Who verified it to be taken back into the stock? Quality / condition? Who requested the new part? What was the need of this part? Was it meant for line 12 / plant expansion? Is this item used for any other line? Can this item be used at another site globally? What I learned from asking these questions is that internally we had a lot of gaps on who was responsible for what. Although they had the knowledge and expertise neither side could formulate what would be the best process to help reduce our inventory. Turtle ran data that showed in the last two years of inventory that had no movements. When this data was presented to the site, we found that although there may be no movement. Some of these parts are considered critical parts to operations. Spare analysis is an industry standard tool that uses delivery time and cost, downtime, lost production
costs, and failure and repair data to calculate the amount of spare parts. Many companies use this analysis to identify their critical spare parts. The data is used to ensure that you have the necessary spare parts for unplanned failures, while also making sure you do not have a surplus of unneeded parts. I asked our engineering team to perform this analysis for us to discuss with the maintenance team and vendor. The outcome was about 20% of the total inventory could be identified as a critical spare part at the moment. Due to a system change before my time two sites bill of materials were lost and would need to be rebuilt. With the bill of materials needing to be rebuilt I found myself at a cross road with this project. To ensure accurate inventory levels the bill of materials are a critical aspect of this project. Ideally I cannot out this project on hold. With talking with all departments involved we agreed to work parallel with the rebuilt process. Taking the knowledge of the team to manually review the data and determine what can be removed from inventory. I created a process to remove inventory along with a goal to maintain it once we have completed the initial process. The charts below lay out my recommendations. Process to Identify & Remove Parts Inventory. Task Conduct W2W to identify non-moving inventory Share results of W2W with the site. Set timeline for the site to identify obsolete, non-critical, critical spare parts Identify obsolete, non-critical, critical spare parts Determine opportunities to dispose of material Get site approval for plan to dispose of material. Identify financial benefit. Get Finance approval to remove identified inventory Remove inventory Dispose of material through approved options Determine how to apply savings/profit from sale of parts Process to Maintain Proper Inventory Levels Task
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