As the machine tools industry is continually developing, manufacturers tend to operate as efficiently as they can and always seeking the available ways to reduce costs and maximize profits by eliminating such wastes as overproduction, waiting, wastes of transportation and processing, wastes of inventory, movement and defective products. This essay will take a closer look at the role of inventory and whether any machine tool manufacturer needs inventory.
According to the theory of lean production that has its origins in Toyota Production System to provide a competitive performance in the automobile market in the middle of the XX century, inventory is considered to be one of the most considerable wastes. Because of the excess of inventory manufacturers suffer additional losses. Thus stock at hand demolishes the capital and goes out of use, devours land and labor without making any profit. What is really important to do in this case is to identify excessive production capacities with a turnover of less than 10 times a year.
In addition, the value of the inventories can be reduced by the changing consumer wants and needs, technical obsolescence and quality of the stock of hand. A successful inventory control can lead to the considerable savings. For example, released just this year, MC Machinery Systems' LUMEX Avance-25 is the first-to-market machine to combine 3-D printing with high speed milling in the same build chamber is an innovation. Additional costs of inventories will have a negative impact on the quality on such kind of goods. Otherwise, inventory possesses the most opportunity for significant improvement as long as it`s carefully examined. Inventory is a vital component for the company to meet the customer`s requirements. Thus, “just-in-time” management and Kanban tickets will improve the process of manufacturing and satisfy the customers’ requirements without additional losses.
REFERENCES
- "Inventory Management 101: Time to revisit the principles." http://www.supplychain247.com/. 1 Jan. 2014.<http://www.supplychain247.com/article/inventory_management_101_time_to_revisit_the_principles/inventory>.
- Dennis, P. (2002) Lean Production Simplified, Productivity Press, New York, ISBN 1-56327- 262-8..
