| Abstract |
Powder Coating Resin industry is increasingly competitive. Besides providing reasonable prices to customers to consolidate market share, how to enhance satisfaction rate on delivery to bring extra value to the client, and how to reduce company’s Operating Working Captial (OWC) to obtain better financial results, are the two primary goals that enterprises are pursuing.
Recently, global recession becomes a normal conditon and production operating rate is often times less than 100%. Under such conditions, how to successfully arrange delivery to meet customers’ needs and well control finished goods inventory becomes very crucial. Therefore, this study aims at identifying approaches for leveraging company's earnings, customer satisfication, and asset of finished Stock.
This study is conducted on using data provided by a powder coating resins producing company. Through applying Lean Six Sigma, this study investigates and analyzes the company's historical data, between June, 2014 to December, 2015. After exploring the impacts of finished goods inventory on Operating working capital (OWC) and customer satisfaction rate of delivery, we conclude that product inventory control is an importand and imperative problem faced by the company.
Furthermore, through applying DMAIC on the selected case, we identified the key factor that affects inveotry control: Top 10 products inventory quantities. With proper control of the top 10 products invenotry and the safety stock setting at 950 tons, the customer delivery satisfaction rate will reach up to 96%. It is our hope that the adopted framework can serve as a practical decision-making model which allows the Powder Coating Resins producers to optimize its month-end finished goods inventory. |
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