Monday, June 17, 2013

A Simple System for Packing Box Management System

One day a lady from my Logistic department calls me up for help, she needs a simple, easy to implement and easy to use system for her packing box inventory management.
Based on the current process map we workout, I learnt that her supervisor is responsible to monitor the packing boxes inventory from time to time, to ensure sufficient packing boxes to sustain the operation in the Logistic department.
Her problems – there is no proper stock replenishment systematic in place, decision for stock replenishment and quantity to order is solely based on the supervisor experience. Therefore resulting of unsatisfactory of inventory level, such as, over stock of slow moving item, whereas operation line down due to shortage of necessary packing box.
To overcome her problem, I m proposing her to use the Min – Max for her packing box management, what she need to do is review the past 6 month data to draw the Min – Max line for each packing box inventory level, set it and implement.
Here the result.


Here the feedback from her after 1 month of implementation.
-          She is happy with the system as she have better visibility of stock level
-          Free up more supervisor time from inventory management, stock take at every end of shift is eliminated, supervisor just required to trigger a fix quantity of packing box ordering when the inventory level is closing or below the red zone.
-          Packing box is review in monthly basis, whereas she has to do it by daily basis before the improvement in placed.
Lesson learn
Effective system is a system that meets your objective, easy to maintain and manage. Its not necessary must be a complicated high tech system that required huge amount of capital investment.

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