5 Ways to Eliminate Waste Due to Waiting for Materials

Table of Contents
5 ways to avoid wasting time and costs due to waiting for materials, both main materials and support materials, in the midst of pursuing the completion of production process deadlines according to targets by implementing an inventory management system, availability of adequate transportation equipment, incoming material QC officers, suppliers who are on time and make support plant is a support plant.

1. Implement Inventory Management

Main material inventory and material support is carried out by PPIC so that it must implement material inventory management without stock outs.

The application of inventory management must be balanced because excessive inventory raises high inventory costs such as the risk of damage during storage, storage costs and loan interest and less inventory causes disruption to the production process so that it will impact on timely delivery.

In making a decision on what is the most appropriate inventory order value, the inventory manager can apply the EOQ (Economic Order Quantity) approach, namely the most economical purchase amount that is influenced by:

The number of units of demand for goods in a certain period of time
  • Order fee
  • Cost of storage per unit of time period.
If the EOQ can be determined, then make a decision when to order again (ROP / Reorder Point). This ROP is the number of units left in the warehouse as the basis for opening orders again by always paying attention to the lead time from ordering goods until the goods arrive at the warehouse. The lead time for each unit and each vendor will be different.

It should be noted that even though the lead time has been recorded, in reality there is a possibility that the goods arriving at the warehouse will experience delays due to weather, natural conditions, changes in demand or delays in shipping.

This must be anticipated in order to prevent stock outs by imposing SS (Safety Stock), namely goods stored in a certain amount at all times in anticipation of unexpected conditions. In determining the amount of safety stock, consider the following costs, such as the cost of stock out and carrying.

In conclusion inventory management simply only calculates:
  • What is the EOQ?
  • When ROP
  • How many SS.
2. Adequate Transport Equipment

The transport equipment referred to is more focused on the type of forklift heavy equipment with a capacity of between 2.5 tons to 3.5 tons.

Forklifts are the most widely used lifting and conveying equipment in industry to lift and move heavy items that humans cannot do.

Included in the material is one of the items that the forklift moves. So if one day this forklift cannot be used because it is damaged or there is a queue for using the forklift due to the limited number of units, the production process will be hampered due to waiting for materials to be sent using this forklift.

What is the solution to eliminate the waste of waiting for materials regarding this conveyance equipment?

The first is to analyze the extent to which this unit of heavy equipment is needed, whether 1 unit is sufficient or does one or more units still need to be added.

The time base of 1 forklift unit is the same as the operator's time base, 1 day equals 24 hours minus the rest hours (3 shift operations). When the use of the forklift hour meter approaches its time base while there are still many shifts in the forklift process including queues for material transfer processes, the unit capacity must be added immediately until all forklift handling processes are handled.

Next, in order to reduce the availability of forklift units, provide optimal forklift maintenance in the form of predictive maintenance and autonomous maintenance so that unit availability is high so that it can support the fulfillment of material supplies to the production department.

3. QC Incoming Materials

What if when you are going to use the material it turns out that the specifications are under grade? Even if it is forced, the production process still has a high probability of rejection and production is of course the scapegoat. So, the process was forced to stop waiting for new material but according to specifications.

To anticipate the emergence of cases like this, it is necessary to form a QC team for Incoming materials, including main and support materials. Incoming QC is under PPIC or QC, but it will be easier to coordinate, so this team should be placed in PPIC even though there are QC attributes.

Incoming material QC officers have the authority to reject supplier goods if the goods do not meet quality standard specifications. If there is material that has arrived, but the incoming material QC officer has not checked, production is prohibited from using the material even while waiting for the process.

4. Punctual Supplier

It's not just finding quality suppliers and the best prices that Purchasing is looking for, suppliers who can deliver materials on time are also very important.

Material delays from suppliers can be due to payments to suppliers with pending status so that suppliers are reluctant to send the material back. The best way for Purchasing is to immediately complete payment matters if all transaction documents have been completed and submitted to Finance. Looking for other suppliers may not necessarily have the best price and quality.

This delay can also be caused because the material at the supplier is scarce or there is an increase in price so that the supplier deliberately delays delivery until there is a price revision. Suppliers like this should be abandoned immediately because one day they will act to slow down the delivery of materials.

5. Support Plant is a Support Plant

Support plant is a support plant not dubious as the main plant. This statement applies to group companies including several subsidiaries, branches and plants.

The main plant is a plant that produces finished goods to be sent to buyers. Support plant is a plant that produces components to be sent to the main plant.

Each main plant competes to produce the maximum output value.

If the support plant is burdened like the function of the main plant in the output value race, you can guess which of these support plants will pursue first. So that there are several main plants that will face conditions waiting for the delivery of plant support components.

So that the support plant should still be used as a support plant only. Resources such as main plant production machines are not installed in support plants.
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