MOTORCYCLE PARTS INVENTORY MANAGEMENT SYSTEM

Ailada Treerattrakoon
Department of Industrial Engineering, Faculty of Engineering,
Kasetsart University, Thailand
fengadt@ku.ac.th

Tanaporn Lersbuasin,
Department of Industrial Engineering, Faculty of Engineering,
Kasetsart University, Thailand
tanapon.ler@hotmail.com

Abstract:
The objective of this study is to design an inventory management system for motorcycle parts
manufacturing in order to control inventory of raw material, forecast demand and schedule production
planning. The system includes storage for inventory, an indicator for monitoring the motorcycle parts
and reporting the level of current inventory of the items. The integrated information on the status of
inventory is used to decide whether an order for the inventory should be made. This system helps to
keep track the flow of products and supplies faster and reduce the total inventory cost.

Keywords: motorcycle parts inventory, inventory management, inventory system, production planning

1367
1. INTR
RODUCTIO
ON
There iss a high com mpetition in small
s and medium
m enterrprises in Thhailand. Prod
duction plan nning and
control are
a importantt tools to opttimize utilizattion of capaccity, time and
d cost of prod
duction. A ca ase study
of motorrcycle part manufacturer has sufficien nt labor, macchine, experie ence and skiill, but lack of
o efficient
management system m causing production eff fficiency is not
n high. Ma ake-to-stock production has h been
applied due to entre epreneur’s experience
e in
ncluding raw w material orrdering and production schedule.
s
There is not an inven ntory management syste em which pro ovides inventtory record and status to integrate
mation in order to make a good decisiion for the en
all inform ntrepreneur.

This ressearch is aimmed to design the inventory manag gement systtem to recorrd inventory, present
inventoryy status an nd inventory shortage warning,
w inc
cluding foreccasting raw material input. The
inventoryy manageme ent system design is deveeloped to be
e easy use annd appropria
ate for motorc
cycle part
manufaccturer. All invventory reco
ords have be
een applied tot forecast raw material input, imple
ement the
inventoryy manageme ent system, determine raw
r material reorder point and production sched dule, and
estimate
e cost for eacch product.

2. PRO
OBLEM AN
NALYSIS
The mottorcycle partt manufacturrer has moree than 774 products.
p The
e main raw material is aluminum
a
which ha
as at least 11
10 types. Pro
oduct characcteristic is anodized aluminum as figure 1.

Figure 1:: Anodized alu

uminum

Source: A case study of

o motorcycle part
p manufactturer

There arre more than

n 945,000 pie
eces of workk in process (WIP)
( inventtory. Productt cost has ne
ever been
calculate
ed. Make-to--stock produ
uction is bassed on entreepreneur’s decision.
d Pro
oduct groups s can be
categorizzed by dema
and as figure
e 2.

Figure 2:: Product grou

ups’ demand

Source: A case study of

o motorcycle part
p manufactturer

e 42 CNC ma
There are achines which h are 14 CNCC turning machhines with feeeding, 13 CNC C turning mac
chines, 15
CNC milliing machines, 10 drilling ma
achines, and 3 cutting mach
hines with layo
out as figure 3
3.

1368
Figure 3:: Machines layyout

Source: A case study of

o motorcycle part
p manufactturer

Production process from

f raw matterial to finish goods is as
s figure 4.

Figure 4:: Production process

p

Source: A case study of

o motorcycle part
p manufactturer

1369
3. THE
E INVENTO
ORY MANA
AGEMENT
T SYSTEM
M DESIGN
entory manag
The inve gement syste
em model is as figure 5.

Figure 5:: The inventorry managemen

nt system mod
del

Source: A case study of

o motorcycle part
p manufactturer

Raw ma aterial inventtory and non-anodized products inv ventory shouuld provide sstock status
s, reorder
point, saafety stock, economic
e prroduction quantity (EPQ)), and econoomic order qquantity (EOQ) which
can be accessed
a viaa computer network in thet motorcyccle part mannufacturer. W
When custom mer order
arrives, types
t and quuantities of required prod
ducts will be converted to
o types and quantities off required
raw matterial to fulfilll customer order and satisfy safetyy stock. Prodduction time will be estimated to
schedule e production planning. The designed inventory management
m system has been develo oped in 3
Excel file
es.

3.1. Raw
R materrial

Capabilitty: Presentin
ng, warning, and
a forecastting inventory
y of raw mate
erial status.

uantities and
Input: Qu eiving and ussing raw matterial (in and out).
d date of rece

Output: Balance,
B saffety stock, EO
OQ, and mon
nthly forecas
sting of raw material.
m

There arre 3 spread sheets in this file which are AddmattData sheet, Balance Ma
at sheet, and
d Kg Mat
Data she
eet.

Data sheet
AddmatD

AddmatD
Data sheet iss used to reco
ord quantitiess and date off receiving an
nd using raw material as figure
f 6.

1370
Figure 6:: AddmatData sheet

Source: A case study of

o motorcycle part
p manufactturer

Balance Mat sheet

Balance Mat sheet presents

p bala
ance of raw material
m as fig
gure 7.

Figure 7:: Balance Matt sheet

Source: A case study of

o motorcycle part
p manufactturer

Kg Mat Data
D sheet

Kg Mat Data
D sheet pre
esents foreca
asting of raw material as figure 8.

1371
Figure 8:: Kg Mat Data sheet

Source: A case study of

o motorcycle part
p manufactturer

3.2 Work
W in pro
ocess inven
ntory

Capabilitty: Presentin
ng, warning, and
a forecastting inventory
y of non-anodized produccts status.

uantities and
Input: Qu d date of rece
eiving and ussing non-ano
odized produ
ucts (in and o
out).

Output: Work
W in proccess balance
e, reproductiion point, sa a economic production
afety stock, and n quantity
of non-anodized prod
ducts.

Work in process inveentory file will

w present re eproduction point, safetyy stock, and economic production
quantity of non-anod
dized productts as figure 9.
9

Figure 9:: Work in pro

ocess invento
ory output

1. Add
A EPQ line (Auto
( run)

2. Add Re
eproduction Po
oint line
3. Add
A SS line

Source: A case study of

o motorcycle part
p manufactturer

3.3 Production
P input

Capabilitty: Determin
ning producttion schedule
e and summ
marizing required raw m
material and required
productio
on time.

uantities of required prod

Input: Qu oduction schedule.
ducts and pro

Output: Required prroducts, requ uired production time, total usage off raw materia
al in selecte
ed period,
and total usage of prroduction tim
me in selected
d period.
There arre 4 spread sheets in th his file which
h are PRD Innput Order sheet,
s BOM Database sh heet, Mat
Databasse sheet, andd PRD Orderr Print Out sh heet.

1372
PRD Inp
put Order she
eet

PRD Inpput Order sh

heet is usedd to record and
a determine productio on schedule. When adding data,
system will
w calculate required pro
oducts, requiired production time as figure 10.

a in PRD Inpu
0: Adding data
Figure 10 ut Order she
eet

Ad
dd
1
Da
ata

Source: A case study of

o motorcycle part
p manufactturer

When sa aving file, all data will colllected in dattabase to calculate total usage of raw
w material in selected
period and total usag ge of producttion time in selected
s perio
od as figure 11.

1: Total usag
Figure 11 ge of raw ma ected period and total usa
aterial in sele age of production time in selected
period
Material
Total Mat. Requir
rement 45.49 m.

Source: A case study of

o motorcycle part
p manufactturer

After tha
at the inventorry management system will present produ
uction status as
a figure 12.

2: Production
Figure 12 n status

Source: A case study of

o motorcycle part
p manufactturer

1373
Production operator can print outt production order as figu
ure 13.

Figure 13
3: Production order

Source: A case study of

o motorcycle part
p manufactturer

4. SUM
MMARY
Before applying
a the inventory mannagement sysstem, recordinng, calculating
g, and checkin
ng status were
e made by
man that took long tim
me and was difficult
d to devvelop. After applying
a the inventory maanagement syystem, the
motorcyccle part man nufacturer ha
as necessaryy database whichw providees production n schedule, inventory
status, to
otal usage off raw materia
al and total usage
u of prodduction time,, and other nnecessary infformation
to help workers
w workk faster and entrepreneu ur make a rig ght decision due
d to updatted informatiion. Time
to checkk inventory status
s has been
b reduce ed from 30 minm to 3 min n. Time to ddetermine production
schedule e also has be
een reduced from 30 min n to 3 min.

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