Improvement in the Visibility of Nonconforming Product Inventory and Reduction

Abstract

One of the major problems reported in a company is the Nonconforming product inventory, reducing the availability to use space for new production lines and storage of conforming product. Company wants to understand why the nonconforming products are exceeding the expected product disposition closure date, why the hold cages are full causing difficulty of locating a particular nonconforming production order in the storage areas. There are key elements of information to understand the actual status of nonconforming inventory. Therefore, the implementation of an optimized NC Monitoring Report system, through the using an ERP System, helps to prioritize Product Dispositions execution, reducing the aging of inventory and improving the allocation of resources to value added activities. After evaluation of current NC Monitoring Report system and proposed new NC Monitoring Report systems, waste removal in the cycle time is reduced from 223 minutes to 31, which represents a reduction of 86%. Key Terms ⎯ Disposition, Nonconformance, Nonconforming product, Product Inventory.