Growth in Inventory Control Using Supermarkets

Growth in Inventory Control Using Supermarkets

Christopher T. Barfield

XXXX University

Abstract

This paper explores the benefits of supermarkets on production systems through results from quantitative research conducted on a current inventory control system. The benefits of supermarkets vary, yet the results all aid the hypothesis that supermarkets provide an ease of inventory control. A supermarket, in production systems, is a system used to aid inventory control. Supermarkets house on the necessary parts to complete one unit at a time, hence a pull system. Supermarkets are considered a lean system, based off its efforts to reduce waste. The reduction of waste is one of the primary missions of a lean environment. This paper examines current ways to reduce waste, cycle-time (units per hour), and control inventory using a pull system for replenishment.

Growth in Inventory Control Using Supermarkets

The Kaizen Institute defines kaizen, an integral part of lean manufacturing, as “practice of continuous improvement”. Kaizen aims to implement systematic processes that enhance the current workflow of a production or task. Unlike kaikaku, the Japanese word for radical change, kaizen is expected to show change or increase through many small changes accumulated over a specific duration. Syverson (2001) maintains that kaizen activities have two types of goals: to create a one-piece flow type of environment and to address your problems when they happen. Of the many aspects of lean thinking, supermarkets are often relied upon to control inventory. Since inventory systems heavily rely on customer demand, supermarkets are considered a “pull system”. According to Womack and Jones (2003), “Pull, in the simplest terms, means that no one upstream should produce a good or service until the customer downstream asks for it” (p. 67). Many theories support why inventory control relies so heavily on supermarket effectiveness.

Unquestionably, supermarkets are often used to help direct and control workflow. However, a very large percentage of the inventory deliveries are being received from a farther location than the supermarkets. As a result, delays in the part delivery process often occur.  The department in question currently troubleshoots and repairs Apple laptops. Repair technicians within the Apple department depend profoundly on component deliveries for their respective production. It can be concluded that inventory delivery systems must be strategic and swift. Presently, there are supermarkets implemented on the production floor, as well as part deliveries from the warehouse area. The parts being delivered from the warehouse to technicians on the production floor tend to take longer to be delivered. Since the warehouse is much farther than the production floor, these particular deliveries are often delayed. Certainly, an effective supermarket system will likely yield reduction of waste in terms of cycle time and inventory. This paper will primarily focus on the implementation of supermarkets and their effectiveness through quantitative research.

Literature Review

Firstly, understanding kaizen and it’s expectations is the is one of the most vital aspects of this study.  Nancy Syverson, lean researcher and managerial editor of Impomag, explains that the culture of kaizen focuses on eliminating waste in all systems and processes of an organization. In an excerpt about kaizen advantages and disadvantages, Syverson (2001) explains, “The kaizen concept places value on the individual as well as collective creativity. The business strategy of kaizen incorporates everyone in the company working together toward continuous -- not temporary -- improvement at all levels.” (p. 16).  This is absolutely important to recall when attempting kaizen events and enhancements within production. Syverson (2001) continues by outlining the 10 expectations of a kaizen event. The 10 rules explained are as follows:

1. There is no rank among team members
2. Keep an open mind to change
3. Change is good, more change is better
4. Maintain a positive attitude
5. Nobody blames anyone for anything
6. Respect each other
7. There is no such thing as a dumb question
8. Plans are only good if they can be implemented; plans succeed only if gains are sustained.
9. There is no substitute for hard work
10. Just do it!

The 10 rules defined are intended to help effectively guide a kaizen team towards its goal. Syverson (2001) then expounds upon the key factors of the Toyota Production System, the leading influence behind lean manufacturing. She concludes her selection by explaining the culture of a kaizen. Syverson (2001) states that eliminating waste in all systems and processes of a company is the driving-force of the culture of a kaizen event. Definitely, understanding the culture of a kaizen, and its basic rules will likely aid in conducting an effective study.

        Secondly, understanding the concept of pull systems is imperative in conducting this study. Womack and Jones (2003) state, “The best way to understand the logic and challenge of pull thinking is to start with a real customer expressing a demand for a real product and to work backwards through all the steps required to bring the desired product to the customer” (p. 67). Supermarkets are considered one of the primary pull systems of lean manufacturing. The two authors continue by providing examples and research that support their claims and definitions. Womack and Jones (2003) define pull as a system of flowing production and distribution guidelines from downstream to upstream in which the upstream supplier produces nothing until the downstream customer has a demand. Understanding this concept is certainly vital to an effective pull system.

        Moreover, a sufficient grasp of continuous flow must be established to conduct this study effectively.  The Toyota Way delves into implementing and enhancing many flow processes within manufacturing companies. The Toyota Co. is one of the founding companies of lean thinking. Liker and Meier (2006) state, “Sustaining continuous flow also serves to surface any problem that would inhibit that flow” (p. 81). Flow is very important to sustaining an effective manufacturing plant. This fieldbook gives detailed criteria for achieving flow in manufacturing settings. Supermarkets are intended to have continuous flow within the production system. This book describes the essential elements of achieving this continuous flow.