Definition and implementation of a visual inventory management system

Abstract

Companies today often look to improved inventory management as a means to lower costs and increase their ability to consistently meet customer needs. Research was conducted at Alcoa (Shanghai) Aluminum Products Co,, Ltd, (ASAP) in Shanghai, China to determine a framework that might be used to define and implement a visual inventory management system in a foil mill. The framework proposed is founded on I) understanding the current material and information flows and developing reasons why inventory exists, 2) consolidating rolling and annealing schedules, identifying key specifications, determining necessary inventory levels, and defining a pull system, and 3) creating an environment where people are included in the change process and educated in the principles upon which the visual inventory management system is based. The framework proposed enabled a pull production system to be implemented at ASAP in the cast shop and rolling area in approximately 6 months. It is anticipated that total WIP and finished goods inventory levels will be decreased from 2000T to 1600T, average coil manufacturing time will be reduced from approximately 19 days to I S,S days, and delivery performance will be improved.