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CPE Inventory Optimization Project
INGENIERÍA DE LA PRODUCTIVIDAD
NOVEMBER 13 2008 13,
NOMBRE Marco Antonio Silva Javier Sánchez Flores Miguel Casillas Velasco Carlos Sergio Arrieta SerratoMATRICULA A01048110 A00266037 A00343715 A00343714 SEDE CD. JUAREZ SALTILLO COLIMA COLIMA

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Inventory Optimization Report
Points of Discussion •Definition of the Problem •Root Causes •CurrentProcess Map •Improvement Opportunities •Suggestions for opportunities found •Financial Benefits

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1.Problem Definition
• Shipping costs in May increased $61k due to excessive overnightshipments of CPE • St k requirement analysis i manual, ti Stock i t l i is l time consuming, and cumbersome • Suspect we may retain excessive stock in some products (See Annex # 2 for Details)

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3 2.Root Causes
• Shipping costs in May increased $61k due to excessive overnight shipments of CPE

• Stock-out due to: Stock out
> Delay in approving PO > Delay from Vendor in getting the PO intheir system > Delay in normal vendor shipping time frame



Re-Stocking analysis is manual, time consuming, and cumbersome

• Systems provide pieces of data that must be manually manipulatedin
Excel to obtain: > Field shipment orders > Stock replenishment quantity



Suspect we may retain excessive stock

• Lack of generally accepted stocking methodology to manage stock

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4 3.Improvement Opportunities

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Less Regimented PO approval process Automatic re-stocking analysis Utilize bar code scanners to integrate with inventory system Decrease supplier lead time•

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4.Improvement Actions
• Develop fully automated daily report to provide re-stock amounts and field shipping details.



Field Shipping detail:
> > > > > Order # CLLI TSP DateMarket Equipment Part Number Quantity Q tit



Re-Stock Amounts
> >

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. Develop process to incorporate scanning devices to place inventory data into inventory system. Enhance CPE...
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