An inventory management model is built for the job shop manufacturing company, Profection Manufacturers, who experienced difficulty with their sheet metal inventory control. Research is done on facility planning, warehouse operations and equipment, lean job shop, business models and laser cutter nesting to optimise the performance and operation of the newly implemented warehouse. The conceptual design summarise the relevant Industrial Engineering principles applied to develop the inventory management model, namely business engineering, total quality management (TQM), operations management and facilities planning.
The old warehouse layout was restructured, with added storage equipment and material handling equipment installed. Each operator is given certain roles and responsibilities to manage all warehouse operations, resulting in a leaner warehouse facility. A complete IDEF functional and process model generates clear understanding of the warehouse and the purpose thereof. The database model, which indicates the inventory quantity, storage location etc. creates complete visibility of the system to ensure availability to the manufacturing department. Best practices and key performance indicators of the warehouse are listed down for management to control the warehouse to its optimal. New technology application and further studies are essential for continuous improvement.
The end result for Profection is increased profitability, organised warehouse and decreased inventory on hand.
Thesis (B Eng. (Industrial and Systems Engineering))--University of Pretoria, 2009.