Improvement of Material Flow in the Production and Supply Chain of ...

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CHAPTER 6 INVENTORY REDUCTION AND DELIVERY OPTIMIZATION Supply chain management is a cross-functional approach to managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and then the movement of finished goods out of the organization toward the end-consumer. (Wikipedia, viewed 2007). So far, this paper has contained the optimizations of the first two segments in supply chain management. Relationships between the company and the customers are complicated and the ability to effectively match demand and supply is fundamental to nearly all supply chain management processes. As the production volume increases, the balance between the company and its customer may be destroyed and affect the company’s reputation if the management of supply chain is not updated together the fluctuation. Besides, the inventory is another consideration in operation management, which is changing along with the production volume also and needs to be optimized. In this chapter, authors did the research based on theories and experiences from successful cases of other enterprises. Threads and opportunities will be analyzed and then, feasible solutions will be proposed and evaluated. 6.1 Rules and methods to balance the profit between factory and customers The supply chain is the total flow of materials, information and cash, from the suppliers' suppliers, right through an enterprise to the customers' customers. (Ahmad & Benson, 1999). Figure 6.1 shows the flows between the supplier and customer. It is clear that materials flow from the supplier’s supplier to the supplier, which can be the role of the company here, and then to the company’s customer and to the customer’s customer. Cash flows in the reverse direction, from the customer to the supplier. 50
Information flows both way through the system and meanwhile gives the visibility to the whole system. Some of the problems can be predicted, while others are occasional. The company always has to optimize the supply chain, no matter in production or delivery or some other aspects, to deal with the problems may happen according to prediction. Since there are so many flows through out the supply chain, problems are easy to happen. Sometimes products are wrong or late delivered. In some cases, incorrect invoices are sent out. From time to time, inventory in the warehouse is counted wrong against the data in the computer. In the warehouse, it happens now and then that too much inventory or not enough of what is wanted. When changes happen in the supply chain, no matter the demand or the production technology, the system is interrupted and need to be rebalanced ahead of time. To those problems cannot be predicted by time, preventive measures are necessary to deal with the unexpected situation. Figure 6.1 Flows in Supply Chain Between Factory and Customers (Clermiston Consulting Pty Ltd, viewed 2008) Generally, the goal to optimize the supply chain is on one hand to reduce the cost of materials, handling and processing, and on the other hand to establish a steady and potential system that is able to deal with the similar situation in the future. Prerequisite of the optimizations is the processes inside the chain must work, which must be confirmed ahead of time. Another goal to optimize the supply chain is to achieve a critical information system that matches the physical and transactional processes in real time. The information is through out the supply chain in both directions, which means suppliers and customers must have close relationships that contain synchronized communications. 51
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ROYAL INSTITUTE OF TECHNOLOGY Impro
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Needs to be pointed out is that in
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TABLE OF CONTENTS ABSTRACT.........
Page 7 and 8: List of Tables Table 3.1 Descriptiv
Page 9 and 10: CHAPTER 1 INTRODUCTION OF THE RESEA
Page 11 and 12: 1.2 Present problems Haldex faces i
Page 13 and 14: CHAPTER 2 RESEARCH THEORY AND METHO
Page 15 and 16: mindset simply does not accurately
Page 17 and 18: the customers. Both of them are pri
Page 19 and 20: processing in station 5b. In the re
Page 21 and 22: After deleting the un-normal data i
Page 23 and 24: data of preassembly line accords wi
Page 25 and 26: Standard Deviation 68.49 Standard D
Page 27 and 28: Table 3.6 Values of Parameters of T
Page 29 and 30: line. In order to simplify the mode
Page 31 and 32: Table 4.3 Output Date Come From the
Page 33 and 34: Table 4.5 Current Production Volume
Page 35 and 36: Table 4.7 listed the simulation res
Page 37 and 38: 4.3.3 Increasing the operation time
Page 39 and 40: ottlenecks. Obviously, from the poi
Page 41 and 42: the first one. For the third soluti
Page 43: and unforeseen events by keeping sa
Page 46 and 47: separately and the supply chain emp
Page 48 and 49: 5.2.1 Current distribution of suppl
Page 50 and 51: Table 5.2* Delivery Information of
Page 52 and 53: ecause this only gets from experien
Page 54 and 55: 5.3.2 Inventory and suppliers’ se
Page 56 and 57: Table 5.3 Integrative Estimation of
Page 60 and 61: How to get the best value from a su
Page 62 and 63: calculation, 420 pallets can be suc
Page 64 and 65: each day. The maximum load of one t
Page 66 and 67: and can also overworking during wee
Page 68 and 69: CHAPTER 7 CONCLUSION AND FUTURE WOR
Page 70 and 71: Reference Books and papers • Ahma
Page 72 and 73: y Chapman&Hall. • Vickery, Shawne
Page 74 and 75: Appendix A Table 1 TTF & TTR Data o
Page 76 and 77: Table 5.1 Suppliers & Suppliers’
Page 78 and 79: Appendix B Figure 1 Assembly line M
Page 80 and 81: Figure 3 Current Assembly Line Mode
Page 82 and 83: Figure 5 Assembly Line Model in Sol
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