Improted material procurement process & procedure improvement for lead time reduction : a case study of an electronics company specializing in printed circuit boards
Abstract:
This research aims to improve the procurement process for imported materials to address the issue of extended delivery lead time. The case study focuses on an electronics company specializing in the assembly of printed circuit boards, which faces challenges related to long lead times in material imports, affecting its production planning and ability to meet customer demand. Lean and Six Sigma methodologies, specifically the DMAIC (Define, Measure, Analyze, Improve, and Control) model, were applied to analyze and streamline the procurement process. The e-Bidding system was implemented to enhance the transparency and efficiency of the bidding and purchasing phases. The study began by identifying key issues and objectives, with a focus on reducing import lead times and eliminating non-value-added activities in the procurement process. Data was collected from the company's ERP system (Oracle) to analyze existing inefficiencies. A new workflow was designed to shorten the approval time for purchase requests and improve supplier selection through the use of a Supplier Management System, enabling faster and more accurate procurement decisions. The trial of the improved process demonstrated significant reductions in material delivery times, as well as considerable cost savings in warehouse management and production operations. The trial implementation of the new process clearly showed a reduction in lead time for material delivery, as well as an effective reduction in warehouse management and production costs.