OPTIMIZING INVENTORY MANAGEMENT BY IMPROVING SPARE PARTS TRANSACTION PROCESS THROUGH THE PDCA CYCLE
Effective inventory management is essential as inventory serves as one of the most important assets of a company. Inventory management plays a pivotal role in achieving operational excellence. However, inventory management often presents complex challenges. To answer these challenges, a breakthrough...
Saved in:
| Main Author: | |
|---|---|
| Format: | Theses |
| Language: | Indonesia |
| Subjects: | |
| Online Access: | https://digilib.itb.ac.id/gdl/view/86769 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Effective inventory management is essential as inventory serves as one of the most important assets of a company. Inventory management plays a pivotal role in achieving operational excellence. However, inventory management often presents complex challenges. To answer these challenges, a breakthrough with the right strategy is needed. With the implementation of the right strategy and improvements in the process, inventory management is expected to be effective and improve operational performance. This study aims to investigate the optimization of inventory management in the Parts Department at PT. United Tractors, Tbk. (UT) to improve the transaction process. This objective includes an analysis of the initial conditions of the business process that displays the transaction process as a reference for researchers whether there are implications in this process, the initial conditions of inventory management as a reference for operational checks to get a comprehensive picture, identification of problems with several approaches such as interviews with employees in various regions to get comprehensive insights, evaluation of inventory performance to find out the current performance conditions and after optimization, and continuous improvement which is the follow-up stage and process improvement. This study uses the PDCA (Plan-Do-Check-Act) cycle methodology with an action research strategy to improve the transaction process in inventory management. By combining design research and methodological research, this research has a good impact on the company so that it obtains very significant results. The results of the study show that the application of the PDCA cycle method significantly improves inventory performance in operations. In addition, communication between teams has also improved very well, as indicated by the results of inventory performance which increased by 25% from the target that has been set (67 days from the target of 84 days). Recording, monitoring, and management of inventory become structured, problems of inventory imbalance and problems with transactions can be resolved properly. In addition to improving inventory performance, improvements in the transaction process also have an impact on increasing sales of spare parts. The implementation of the PDCA cycle was successful in the problems that occurred in the company under the auspices of the author. |
|---|