Abstract:
The aim of this article is to study and to apply the Just-in-time system for material supply of an exporting automotive part packer in order to reduce inventory level. Consequently, capital investment could be reduced and concealing problem in the process can be seen. The technique has been implemented in the real situation.The preliminary investigation in this study revealed that there is wasteful methods to stock excessive raw material, duplication, inefficient working flow, imprecise and tardy purchasing order and unnecessary process in production. To improve the situation, the Just-in-time, an re-layout have been applied to manage the supply and flow of material along the process.As a result, inventory level is decreased by 85% and 67% at the raw material and in process storage area, respective moving distance is shortened by 68%. In addition, two unnecessary procedures were eliminated and 11 employees were reduced. More importantly, the management of raw material is simple and problems, if an exist or ocuur, can be visibly identified and solved.