Head & base production optimization : inventory management strategy

Abstract

A new inventory management strategy was developed for Schlumberger to reduce waste in material handling and improve the warehouse receiving efficiency. The current warehouse receiving situation was analyzed; then the receiving procedure was summarized and the time spent for each step was measured. After that, the cause and effect analysis for the low efficient warehouse operation was analyzed and solutions are proposed. The implementation of this model in the company has seen significant improvements in warehouse operation efficiency. The receiving time of specific machined parts has been reduced by 32% and the receiving of specific sub assembled parts has been reduced by 53%. The improvement has led to a cost saving of US$ 422,148.