Data Collection&data Analysis

Data collection and Data Analysis The data was taken three times during the pre-analysis duration of 1 month. It was found that in all there are 4000-4500 types of material which includes in-house and purchase materials. But at any given time only 2200-2400 types are present in H2 stores which may vary depending on the customer requirement. So there were around 2400 bins in which about 2250 bins were fixed and 150 bins were variable types for types which come rarely. The fixed bin location was decided by factors like weight, volume, quantity, value, movement, etc. A write off list which was submitted prior to my project was approved by the management which was only 6% of total nonmoving it was physically moved to other location out of H2 stores so that space of about 2 Sq.m. was freed and the bins were utilized by other material. Parts were removed from stores but it did not have much impact on space of H2 stores. I analyzed the effect of write-off on H2 stores. Within the project, I also studied the write-off procedure and its effect on the physical stock. The write-off list had a few nonmoving parts but it was not that much useful. Also the problem was if in future the write-off material comes in the stores then it may be accepted and stored as total material types were 2300 and it is difficult to check whether the material is scraped or not. The solution to this was to block the material through SAP so that if the material comes in the stores then it will not be taken in the stores. So it also required coordination with SAP personnel who could block the scraped material. So many more was to be done to solve the problem of H2 stores. So I made other data analysis of materials after write-off. The analysis helped them to target on slow moving and nonmoving material for making space.

The list of material was taken on 08.07.2009 and was used for analysis. The list was analyzed and the summary is as below-

SUMMARY OF H2 STORES (As on 08.07.2009-After write-off) Types

Quantity

Value in %

Usage quantity/day

WTGP (In-house produced) Component Nozzle Nozzle Holder TOTAL WTGP

242 508 62 812

291463 64364 13187 369014

2.85 8.01 1.69 12.54

13486 20739 1951 36176

H2GP (Purchase items) Component Nozzle Nozzle Holder Needle TOTAL H2GP

1059 174 151 3 1387

6924329 61108 45922 15033 7046392

56.21 17.06 14.09 0.11 87.46

122464 600 753 3340 127157

TOTAL WTGP+H2GP

2199

7415406

100

163333

The charts gave us details about the value distribution in H2 stores and the total number of types in H2 stores. The material was also classified according to the space requirement.

The consumption per day of material was done as follows:

Types Usage quantity/Day 0 1 to 5 6 to 10 11 to 25 26 to 50 51 to 100 101 to 200 201 to 500 500 to 1000 1001 to 2000 2001 to 5000 5000 to 10000 >10000 TOTAL

H2GP 715 362 58 81 58 32 18 21 10 17 9 4 2 1387

W TGP 266 226 64 89 53 47 30 16 14 7 0 0 0 812

The observation from this chart was usage quantity of material per day goes on decreasing for many parts. But this chart did not provide a clear picture as small material like washer is used in thousand quantity and high value or high volume material is used in a very less quantity. Also usage/day is over a period of 6 months so it was an average value and not an absolute value. So age analysis of materials, i.e. for how many days the material is in store or the difference between last issue date and last receipt date of material, was carried out to be clearer. WTGP

H2GP

Days not moved

Componen ts

Nozzl e

>2 years

27

11

Nozzl e Holde r 11

Componen ts

Nozzl e

91

18

Nozzl e Holde r 26

1-2 years 6 months- 12 months 3 months- 6 months 1 month- 3 months

32

23

5

45

15

21

28

45

7

211

18

35

38

13

215

34

93

10

164

Needl e

Total Types

Value in %

0

184

0

141

6.14 4.57

20

0

329

13.92

19

25

0

345

15.40

48

24

0

373

16.53

0-1 month

86

298

16

333

56

35

3

827

43.43

Total

242

508

62

1059

174

151

3

2199

100

So this age analysis table helped to find nonmoving material value for more than one year in H2 stores. If the material was nonmoving for more than 1 year then various things had to be considered like•

Which department had the requirement?

•

Does the material is required in the future?

•

What is the value of the material?

•

Does the material can be processed so that it can be used in other department?

•

Can the material be sold to any supplier or customer?

•

If not then can the material be write-off or scraped?

•

Lastly taking lessons so that this material will not procured or manufactured in future?

For all this there is big procedure and it needs approval from high level management. So a list of such material was prepared that can be write-off from H2 stores. So another list of nonmoving material was given which consisted of nonmoving material after write-off and a meetings were held with concerned material head and major stakeholders so as to take decision on these materials. This was an important meeting as the target of 25% was to be achieved for this year. It was a Continuous Improvement Process (CIP) meeting was called as per BPS rules so as to delegate every one there responsibility to reduce inventory.