WECI Inventory Reduction and Just-In-Time Implementation

Abstract

The organization studied showed substantially high levels of inventory, thus a reduction was in need. Given the little information available to implement this in a service environment, a new approach was needed. A mix of common sales tools and a Lean Six Sigma approach allowed the study to take place. Measuring the Product Aging, Weeks on Hands, and Days-to-Sell, establishing a trend through a Product Histogram, developing a Pareto chart, and analyzing the process through a Value Stream Map verified that the levels of inventory are too high. A test was performed and the Just-in-Time approach allowed the organization to reduce the inventory levels while avoiding creating new inventory. Though the project is still being considered for implementation, the test proved to be successful in eliminating the need for inventory, reducing the issues related to inventory, and increasing the profit margin. Key Terms ⎯ Inventory Reduction, Just-In-Time, Service Just-In-Time, Non-Manufacturing Just-In-Time.