IMPROVEMENT OF RETURN MATERIALS PROCESS TO REDUCE INVENTORY LEVEL AT PT X

• Main Author: WAMAFMA (Nim : 29107113) , CLAUS
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/11951
• Institution: Institut Teknologi Bandung

In remote mining operation area, PT X should be providing infrastructures and transportation by its self to support its business with the lower cost and safety operations. This final project will be focused on initiatives to reduce excessive inventory in warehouses. Excessive inventory defined as the stock on hand larger than its maximum stock required (SOH > Maximum stock). In the end of 2008 excessive inventory in PT X Warehouses is US$ 37, 7 millions or 16 % of normal stock keeping at warehouses.<p>Warehouse space, maintenance cost, and increase of obsolescence had have become a serious issue for the company. Both internal and external factors have contributed to excessive inventory value. The Final Project will be focus on impact of return materials process and the impact to execessive warehouse stock The Project Management approach will be apply on this final project, with project management steps, starting from initiation , planning and organization, executing and project closure to asses return materials and other warehouses activities which have potential effect to level of inventory.<p>As a part of the Project Management phase, field observation, internal and external discussion and strong commitment from upper level of management on each PT business units have been a key success factors of the project. Implementation of the project were deliverables some benefits to PT X, there are : US$ 1.6 millions cost saving, improvement of customer awareness to reporting immediately to warehouse if there are any materials need to be proceed to returned to stock. Customer awareness have been improved its indicated by return materials value and quantity increase above the base line for 2008, this is in line with decrease of small store around PT X area.