Critical Inventory Management, Monitoring and Inventory Trend Study System for Sri Lanka Telecom PLC
Transcript of Critical Inventory Management, Monitoring and Inventory Trend Study System for Sri Lanka Telecom PLC
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Final Report
ME4072
Critical Inventory Management, Monitoring andInventory Trend Study System for Sri Lanka
Telecom PLC
By
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CONTENTS
1. INTRODUCTION TO THE ORGANIZATION .................................................................................. 1
1.1 Company Information- Sri Lanka Telecom PLC ..................................................................... 1
1.2 Project Focus .......................................................................................................................... 1
1.3 What is critical inventory? ....................................................................................................... 1
1.4 Current Critical Inventory Handling ......................................................................................... 1
1.5 Birds Eye View of Inventory Flow........................................................................................... 2
2 PROBLEM ANALYSIS .................................................................................................................... 2
3 DATA COLLECTION ....................................................................................................................... 3
4 ANALYSIS MODEL ......................................................................................................................... 4
4.1 VED Analysis........................................................................................................................... 4
5 PROPOSED INVENTORY TRACKING SYSTEM .......................................................................... 6
5.1 Overview of the System .......................................................................................................... 6
5.2 Illustration of the Proposed System ........................................................................................ 7
5.3 Requirement of the System ..................................................................................................... 7
6 CONCLUSION 9
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LIST OF FIGURES
Figure 1 - Present Inventory Flow Process ............................................................................................. 2Figure 2 - Monthly Consumption Pattern ................................................................................................ 3
Figure 3 - Critical Inventory Transaction from July, 2012 to April, 2013 ................................................. 5
Figure 4 - Schematic Diagram of Inventory Tracking System ................................................................ 6
LIST OF TABLES
Table 1 - Daily inventory Outflow within the Warehouse ........................................................................ 3
Table 2 - Percentages of Annual Consumption ...................................................................................... 4
Table 3 - Critical Inventory Data ............................................................................................................. 5
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1. INTRODUCTION TO THE ORGANIZATION
1.1 Company Information- Sri Lanka Telecom PLC
Sri Lanka Telecom PLC is the leading telecommunication provider in Sri Lanka with a net customer
base of 8.5 million. In order to successfully provide a continuing and uninterrupted service, company
handles a large variety and volume of inventory.
Telecommunication sector, utilities, transportation, adequate stockholding of critical inventory becomes
essential to ensure day to day work. Insufficient stocks affect overall performance and increase the
operational risk. On the other hand, oversized inventories lead to inefficient use of capitol and create
unwanted expenditures.
1.2 Project Focus
Since re-order levels are not properly planned ill-mannered ordering takes place. These unplanned
orderings results in opportunity costs that in millions of rupees in annum. Currently the company uses
an inventory monitoring and tender handling interface code named SICOS. This GUI informs
procurement division of inventory shortages and on-going tender levels when prompted by the inventory
management in case of an inventory shortage.
This project is focused on inventory for relatively critical, and that has a high out flow rate, rather than
slow moving inventory Selected inventory that are tagged as critical inventories given as a list in the
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1.5 Birds Eye View of Inventory Flow
Figure 1 - Present Inventory Flow Process
2 PROBLEM ANALYSIS
As Sri Lanka Telecom PLC handles large variety and volume of inventory to provide an uninterrupted
service, an effective inventory management system is necessary. The current inventory control method
indicates the poor inventory tracking system which is performed manually by maintaining the records of
gate passes. Some of the inventory equipment are categorized as critical inventory which has the
highest annual consumption value compared to other inventories Due to this poor inventory tracking
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Januar
y
Februa
ryMarch April May June July August
Septe
mber
Octob
er
Nove
mber
Decem
ber
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
UNITS
3 DATA COLLECTION
Data was collected from the warehouse and SLT headquarters concerning ordering, handling and flowof selected critical inventory between the time periods of twelve months of the year 2012. Furthermore,
in order to understand the inventory layout and process flow, SLT warehouse in Peliyagoda was visited.
Data regarding monthly outflow of selected inventory was also acquired to perform trend patterns
calculations and for future analysis. Most of the data were collected through job cards and gate passes
that was acquired from the warehouse managers. Data was also observed that of the lag between
inventory shortages and procuring that occurs seldom.
Figure 2 - Monthly Consumption Pattern
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4 ANALYSIS MODEL
Critical inventory of this organization often remain untraced or get misplaced due to current inventory
tracking system, prioritization of the inventory is critical in order to keep reorder levels under control
within the supply chain and it is required to focus on items that are most critical to the organization so
that an effective analysis could be done using VED analysis model for this issue.
4.1 VED Analysis
The VED analysis can be used to determine the criticality of an item and its effect on the company
services. This analysis of the items in Sri Lanka telecom inventory, can be used to classify the items
into vital (V), essential (E), and desirable (D) categories. The items that are critically needed in their
daily service, which must be available in the warehouse, are included in the vital (V) category. Items
with lower critically need, which may be available in the warehouse, are included in the essential (E)
category. The remaining items with lowest critically, the absence of which will not be essential to their
daily service, are included in the desirable (D) category.
So the following Table 2 shows the total annual consumption of the items and the percentage.
Table 2 - Percentages of Annual Consumption
S/No Item UOM Total Issues (Peliyagoda) Percentage
1 PSTN Ph P 157 092 5 49%
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Table 3 - Critical Inventory Data
S/No Item UOM Total Receipts Total Issues (Peliyagoda)
3 Cable PVC Twin m 521,000 587,000
8.1 Network
Cable
CAT 5e, Normal UTP m 1,125,436 1,154,879
8.2 CAT3 (3 Pair,UTP) m 547,329 658,491
20000
40000
60000
80000
100000
120000
140000
NUMBEROFISSUES
Consumption Pattern of Critical Items
Figure 3 - Critical Inventory Transaction from July, 2012 to April, 2013
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5 PROPOSED INVENTORY TRACKING SYSTEM
The objective of this system is to provide engineering principles for requirement of proper criticalinventory management at Sri Lanka Telecom PLC. Therefore, the proposed system can be used not
only for the tracking of critical inventories but also for other inventories as well.
5.1 Overview of the System
This system consists of Radio Frequency (RF) tags attached to the inventory equipment which are
designed to track the inventory movements into and out of warehouse. These tags contain respective
information of the items with a reference number and warehouse operator at the warehouse manually
attaches the respective tags onto the items. The proposed system will be based on automated data
acquisition basis which consists of following;
RF tags
Transmitters
Receivers
Processor
Database
Therefore, this system is very useful for inventory tracking with the move towards improving operating
efficiency. Currently SLT is utilizing large amount of money indirectly to track inventories in their
warehouse. Proposed system can result in saving large amount of money which they spent on tracking
the in entor items
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5.2 Illustration of the Proposed System
As shown in the Figure 3 the proposed system is a Radio Frequency (RF) based automated inventorytracking system to track the inventory movements into and out of warehouse. The RF tags which are
attached to the inventory items contains tracking information such as type and quantity and it transmits
radio frequency signals to the receiver. Therefore these tags can be programmed prior to warehouse
storage with a special device by the warehouse operator. Then these tags communicate with RF control
units and sends the data to database of the pallet contents, quantity and presence for instance. The
data stored and transmitted by the tags can be used to track the presence, quantity, type and age of
items in the warehouse.
5.3 Requirement of the System
When designing a system for the inventory tracking criterion there are some initial requirements which
need to be successfully provided by the proposed system, therefore followings are the requirements
that should be provided with the system.
Ability to automatically track items
The tracking system must be able to track all the items with in the warehouse
It should be able to track the movements of items into and out of the warehouse
The tracking system must be able to function in industrial environment
The system must automatically store data into the database
Th t t b bl t t it d i i l hi h h ld t i t f b th t
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The following Figure 4 illustrates the system structure of the entire inventory management system.
Inventory Items Check in
Submit Data to the Database
Tags Attachment
Program the Information
Inspect by Operators
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6 CONCLUSION
This interim report provides the status of the present inventory flow of Sri Lanka Telecom PLC and the
components related to critical inventory of the organization. While steady progress in understanding
the current software based system used by Sri Lanka Telecom PLC, a new program of exploration has
been done to establish a wellorganized and better mechanism to empower inventory system of the
Organization. However, it has been decided to compress this critical inventory breakdown further and
deliver a sample inventory management system due to time constraints but the project will be further
expanded focusing the large domain of critical inventory system once the required level of accuracy is
achieved by this sample project.
7 FUTURE DEVELOPMENT
A two-part, trade-off analysis will be performed to find an optimal solution for a design that contains
multiple, conflicting inventory material criteria. The first part, Multi-Criteria Optimization, will be alsoperformed to figure out a set of potential design solutions. The solutions will be then analyzed to identify
Pareto points, which lie on the three-dimensional trade-off surface.
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8 APPENDICES
8.1 List of Critical Inventory
Pole
Pole Concrete L 18
Pole Concrete L 22
Pole Concrete L 24Pole Concrete L 26Pole Concrete L 30Guy Wire
Rod Stay Complete
100mm GI Pipe50mm GI Pipe (Earth Improvement)Nuts for 50mm GI Pipes (Earth Improvement)
Bolt & NutBolt & Nut L 106 4"x3/8"Bolt & Nut L 114 5"x1/2"Bolt & Nut L 115 5 1/2" x 1/2"
Bolt & Nut L 116 6"x1/2"Bolt & Nut L 117 6 1/2"x 1/2"Bolt & Nut L 118 7"x1/2"
Bolt & Nut L 119 7 1/2" x 1/2"
ADSL Splitter
Staple wire cable clip 5mmRJ9 Connector
RJ11 ConnectorRJ45 ConnectorCDMA Voice
CDMA Phone
Batterry CDMA-AIJI 3 pin
B tt CDMA HUAWEI
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Wire Jumper
Wire Jumper_ Black & WhiteWire Jumper_ Red & White
Wire Jumper_ Blue & WhiteBranch Off KitBranch Off Kit (UG) LARGE
Branch Off Kit (UG) MEDIUM
Branch Off Kit (UG) SMALL
Closures
Doom Closures_30A
Doom Closures_31ACable Closures (Aerial)_TRAC-50/250 & 3M - 2 X 12
Cable Closures (Aerial)_TRAC-75/300 & 3M - 2 X 19Cable Closures (Aerial)_TRAC-75/450 & 3M - 3 X 19
Cable Closures (UG)_75-15-250UG50-100PCable Closures (UG)_122-30-300UG 400-1000PCable Closures (UG)_122-30-500UG 400-1000PCable Closures (UG)_160-42-500UG 1200-1500P
Cable Closures (UG)_160-42-720UG 1200-1500PCable Closures (UG)_200-50-500UG 1800-2400PCable Closures (UG)_200-50-720UG 1800-2400PCable Closures (UG)_43/8-200
Cable Closures (UG)_43/8-350Cable Closures (UG)_75-15-500UG50-100PCable Closures (UG)_75-15-650UG50-100PCable Closures (UG)_92-25-300UG 200-300P
Cable Closures (UG)_92-25-500UG200-300P
Cable Grip
Cable Grip Small 14mm
Cable Grip Small 18mmCable Grip Large 38mm
C bl G i M di 32
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8.2 Inventory Consumption Data
Total Item Transaction from July, 2012 to April, 2013 Monthly Consumption
s/No Item UOM Total Issues Jan. Feb. Mar. Apr. Ma. Jun. Jul. Aug. Sep. Oct. Nov. Dec.
1 PSTN Phones Pcs 157,092 18851 4713 10996 18851 17280 14138 18851 10996 10996 14138 6284 10996
2 ADSL Routers Pcs 156,626 14096 7831 10964 17229 10964 12530 12530 18795 12530 14096 7831 17229
3 Cable PVC Twin M 587,000 46960 41090 35220 64570 46960 35220 46960 64570 46960 46960 29350 82180
4 ZTE Modem Pcs 112,248 7857 10102 8980 10102 8980 6735 8980 7857 10102 8980 8980 14592
5 CDMA Phone Pcs 32,254 2903 2580 2580 2903 1935 1935 2580 2258 3225 2580 2903 3870
6 Sun Servers PL156 units 1,542 123 139 139 123 93 139 123 123 139 123 139 139
7 200Ah Narada battery Pcs 552 44 44 44 44 44 50 50 55 44 44 44 44
8 Network Cable
8.1 CAT 5e, Normal UTP M 1,154,879 92390 92390 92390 92390 92390 103939 103939 115488 92390 92390 92390 92390
8.3 CAT3 (3 pair,UTP) M 658,491 65849 52679 46094 52679 46094 59264 52679 65849 52679 59264 52679 52679