Waste Minimization by Inventory Management in High-Volume High-Complexity Manufacturing Organizations

Abstract

AbstractOrganizations that manufacture high volumes of complex products (e.g., pharmaceutical, automotive, food) require specific strategies to ensure efficient processing of parts and a sustainable level of inventory by waste minimization. A review of literature sources revealed how inventory is classified and managed amongst organizations and industries and key challenges that current organizations face with existing inventory management systems. In this paper, these findings are compared against each other to determine best practices and potential shortfalls that should be addressed when trying to manage inventory holistically. A study is then conducted using qualitative data from 15 semi-structured interviews to answer key questions on inventory management based on the findings from the literature survey. Responses are inductively coded and analyzed to reveal the most important factors of inventory management and determine the most prominent themes. A graphical model to represent the findings is also presented. Inventory functional accountability, inventory classification, operational strategies, visual management of inventory data, and efficient processes were some of the key themes known to be critical for effective inventory management and thus illustrated in the graphical model.