critical inventory management, monitoring and inventory trend study system for sri lanka telecom plc

8/13/2019 Critical Inventory Management, Monitoring and Inventory Trend Study System for Sri Lanka Telecom PLC

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Final Report

ME4072

Critical Inventory Management, Monitoring andInventory Trend Study System for Sri Lanka

Telecom PLC

By


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CONTENTS

1. INTRODUCTION TO THE ORGANIZATION .................................................................................. 1

1.1 Company Information- Sri Lanka Telecom PLC ..................................................................... 1

1.2 Project Focus .......................................................................................................................... 1

1.3 What is critical inventory? ....................................................................................................... 1

1.4 Current Critical Inventory Handling ......................................................................................... 1

1.5 Birds Eye View of Inventory Flow........................................................................................... 2

2 PROBLEM ANALYSIS .................................................................................................................... 2

3 DATA COLLECTION ....................................................................................................................... 3

4 ANALYSIS MODEL ......................................................................................................................... 4

4.1 VED Analysis........................................................................................................................... 4

5 PROPOSED INVENTORY TRACKING SYSTEM .......................................................................... 6

5.1 Overview of the System .......................................................................................................... 6

5.2 Illustration of the Proposed System ........................................................................................ 7

5.3 Requirement of the System ..................................................................................................... 7

6 CONCLUSION 9


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LIST OF FIGURES

Figure 1 - Present Inventory Flow Process ............................................................................................. 2Figure 2 - Monthly Consumption Pattern ................................................................................................ 3

Figure 3 - Critical Inventory Transaction from July, 2012 to April, 2013 ................................................. 5

Figure 4 - Schematic Diagram of Inventory Tracking System ................................................................ 6

LIST OF TABLES

Table 1 - Daily inventory Outflow within the Warehouse ........................................................................ 3

Table 2 - Percentages of Annual Consumption ...................................................................................... 4

Table 3 - Critical Inventory Data ............................................................................................................. 5
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1. INTRODUCTION TO THE ORGANIZATION

1.1 Company Information- Sri Lanka Telecom PLC

Sri Lanka Telecom PLC is the leading telecommunication provider in Sri Lanka with a net customer

base of 8.5 million. In order to successfully provide a continuing and uninterrupted service, company

handles a large variety and volume of inventory.

Telecommunication sector, utilities, transportation, adequate stockholding of critical inventory becomes

essential to ensure day to day work. Insufficient stocks affect overall performance and increase the

operational risk. On the other hand, oversized inventories lead to inefficient use of capitol and create

unwanted expenditures.

1.2 Project Focus

Since re-order levels are not properly planned ill-mannered ordering takes place. These unplanned

orderings results in opportunity costs that in millions of rupees in annum. Currently the company uses

an inventory monitoring and tender handling interface code named SICOS. This GUI informs

procurement division of inventory shortages and on-going tender levels when prompted by the inventory

management in case of an inventory shortage.

This project is focused on inventory for relatively critical, and that has a high out flow rate, rather than

slow moving inventory Selected inventory that are tagged as critical inventories given as a list in the


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1.5 Birds Eye View of Inventory Flow

Figure 1 - Present Inventory Flow Process

2 PROBLEM ANALYSIS

As Sri Lanka Telecom PLC handles large variety and volume of inventory to provide an uninterrupted

service, an effective inventory management system is necessary. The current inventory control method

indicates the poor inventory tracking system which is performed manually by maintaining the records of

gate passes. Some of the inventory equipment are categorized as critical inventory which has the

highest annual consumption value compared to other inventories Due to this poor inventory tracking


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Januar

y

Februa

ryMarch April May June July August

Septe

mber

Octob

er

Nove

mber

Decem

ber

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

UNITS

3 DATA COLLECTION

Data was collected from the warehouse and SLT headquarters concerning ordering, handling and flowof selected critical inventory between the time periods of twelve months of the year 2012. Furthermore,

in order to understand the inventory layout and process flow, SLT warehouse in Peliyagoda was visited.

Data regarding monthly outflow of selected inventory was also acquired to perform trend patterns

calculations and for future analysis. Most of the data were collected through job cards and gate passes

that was acquired from the warehouse managers. Data was also observed that of the lag between

inventory shortages and procuring that occurs seldom.

Figure 2 - Monthly Consumption Pattern


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4 ANALYSIS MODEL

Critical inventory of this organization often remain untraced or get misplaced due to current inventory

tracking system, prioritization of the inventory is critical in order to keep reorder levels under control

within the supply chain and it is required to focus on items that are most critical to the organization so

that an effective analysis could be done using VED analysis model for this issue.

4.1 VED Analysis

The VED analysis can be used to determine the criticality of an item and its effect on the company

services. This analysis of the items in Sri Lanka telecom inventory, can be used to classify the items

into vital (V), essential (E), and desirable (D) categories. The items that are critically needed in their

daily service, which must be available in the warehouse, are included in the vital (V) category. Items

with lower critically need, which may be available in the warehouse, are included in the essential (E)

category. The remaining items with lowest critically, the absence of which will not be essential to their

daily service, are included in the desirable (D) category.

So the following Table 2 shows the total annual consumption of the items and the percentage.

Table 2 - Percentages of Annual Consumption

S/No Item UOM Total Issues (Peliyagoda) Percentage

1 PSTN Ph P 157 092 5 49%


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Table 3 - Critical Inventory Data

S/No Item UOM Total Receipts Total Issues (Peliyagoda)

3 Cable PVC Twin m 521,000 587,000

8.1 Network

Cable

CAT 5e, Normal UTP m 1,125,436 1,154,879

8.2 CAT3 (3 Pair,UTP) m 547,329 658,491

20000

40000

60000

80000

100000

120000

140000

NUMBEROFISSUES

Consumption Pattern of Critical Items

Figure 3 - Critical Inventory Transaction from July, 2012 to April, 2013


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5 PROPOSED INVENTORY TRACKING SYSTEM

The objective of this system is to provide engineering principles for requirement of proper criticalinventory management at Sri Lanka Telecom PLC. Therefore, the proposed system can be used not

only for the tracking of critical inventories but also for other inventories as well.

5.1 Overview of the System

This system consists of Radio Frequency (RF) tags attached to the inventory equipment which are

designed to track the inventory movements into and out of warehouse. These tags contain respective

information of the items with a reference number and warehouse operator at the warehouse manually

attaches the respective tags onto the items. The proposed system will be based on automated data

acquisition basis which consists of following;

RF tags

Transmitters

Receivers

Processor

Database

Therefore, this system is very useful for inventory tracking with the move towards improving operating

efficiency. Currently SLT is utilizing large amount of money indirectly to track inventories in their

warehouse. Proposed system can result in saving large amount of money which they spent on tracking

the in entor items


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5.2 Illustration of the Proposed System

As shown in the Figure 3 the proposed system is a Radio Frequency (RF) based automated inventorytracking system to track the inventory movements into and out of warehouse. The RF tags which are

attached to the inventory items contains tracking information such as type and quantity and it transmits

radio frequency signals to the receiver. Therefore these tags can be programmed prior to warehouse

storage with a special device by the warehouse operator. Then these tags communicate with RF control

units and sends the data to database of the pallet contents, quantity and presence for instance. The

data stored and transmitted by the tags can be used to track the presence, quantity, type and age of

items in the warehouse.

5.3 Requirement of the System

When designing a system for the inventory tracking criterion there are some initial requirements which

need to be successfully provided by the proposed system, therefore followings are the requirements

that should be provided with the system.

Ability to automatically track items

The tracking system must be able to track all the items with in the warehouse

It should be able to track the movements of items into and out of the warehouse

The tracking system must be able to function in industrial environment

The system must automatically store data into the database

Th t t b bl t t it d i i l hi h h ld t i t f b th t


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The following Figure 4 illustrates the system structure of the entire inventory management system.

Inventory Items Check in

Submit Data to the Database

Tags Attachment

Program the Information

Inspect by Operators


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6 CONCLUSION

This interim report provides the status of the present inventory flow of Sri Lanka Telecom PLC and the

components related to critical inventory of the organization. While steady progress in understanding

the current software based system used by Sri Lanka Telecom PLC, a new program of exploration has

been done to establish a wellorganized and better mechanism to empower inventory system of the

Organization. However, it has been decided to compress this critical inventory breakdown further and

deliver a sample inventory management system due to time constraints but the project will be further

expanded focusing the large domain of critical inventory system once the required level of accuracy is

achieved by this sample project.

7 FUTURE DEVELOPMENT

A two-part, trade-off analysis will be performed to find an optimal solution for a design that contains

multiple, conflicting inventory material criteria. The first part, Multi-Criteria Optimization, will be alsoperformed to figure out a set of potential design solutions. The solutions will be then analyzed to identify

Pareto points, which lie on the three-dimensional trade-off surface.


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8 APPENDICES

8.1 List of Critical Inventory

Pole

Pole Concrete L 18

Pole Concrete L 22

Pole Concrete L 24Pole Concrete L 26Pole Concrete L 30Guy Wire

Rod Stay Complete

100mm GI Pipe50mm GI Pipe (Earth Improvement)Nuts for 50mm GI Pipes (Earth Improvement)

Bolt & NutBolt & Nut L 106 4"x3/8"Bolt & Nut L 114 5"x1/2"Bolt & Nut L 115 5 1/2" x 1/2"

Bolt & Nut L 116 6"x1/2"Bolt & Nut L 117 6 1/2"x 1/2"Bolt & Nut L 118 7"x1/2"

Bolt & Nut L 119 7 1/2" x 1/2"

ADSL Splitter

Staple wire cable clip 5mmRJ9 Connector

RJ11 ConnectorRJ45 ConnectorCDMA Voice

CDMA Phone

Batterry CDMA-AIJI 3 pin

B tt CDMA HUAWEI


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Wire Jumper

Wire Jumper_ Black & WhiteWire Jumper_ Red & White

Wire Jumper_ Blue & WhiteBranch Off KitBranch Off Kit (UG) LARGE

Branch Off Kit (UG) MEDIUM

Branch Off Kit (UG) SMALL

Closures

Doom Closures_30A

Doom Closures_31ACable Closures (Aerial)_TRAC-50/250 & 3M - 2 X 12

Cable Closures (Aerial)_TRAC-75/300 & 3M - 2 X 19Cable Closures (Aerial)_TRAC-75/450 & 3M - 3 X 19

Cable Closures (UG)_75-15-250UG50-100PCable Closures (UG)_122-30-300UG 400-1000PCable Closures (UG)_122-30-500UG 400-1000PCable Closures (UG)_160-42-500UG 1200-1500P

Cable Closures (UG)_160-42-720UG 1200-1500PCable Closures (UG)_200-50-500UG 1800-2400PCable Closures (UG)_200-50-720UG 1800-2400PCable Closures (UG)_43/8-200

Cable Closures (UG)_43/8-350Cable Closures (UG)_75-15-500UG50-100PCable Closures (UG)_75-15-650UG50-100PCable Closures (UG)_92-25-300UG 200-300P

Cable Closures (UG)_92-25-500UG200-300P

Cable Grip

Cable Grip Small 14mm

Cable Grip Small 18mmCable Grip Large 38mm

C bl G i M di 32


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Page | v

8.2 Inventory Consumption Data

Total Item Transaction from July, 2012 to April, 2013 Monthly Consumption

s/No Item UOM Total Issues Jan. Feb. Mar. Apr. Ma. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

1 PSTN Phones Pcs 157,092 18851 4713 10996 18851 17280 14138 18851 10996 10996 14138 6284 10996

2 ADSL Routers Pcs 156,626 14096 7831 10964 17229 10964 12530 12530 18795 12530 14096 7831 17229

3 Cable PVC Twin M 587,000 46960 41090 35220 64570 46960 35220 46960 64570 46960 46960 29350 82180

4 ZTE Modem Pcs 112,248 7857 10102 8980 10102 8980 6735 8980 7857 10102 8980 8980 14592

5 CDMA Phone Pcs 32,254 2903 2580 2580 2903 1935 1935 2580 2258 3225 2580 2903 3870

6 Sun Servers PL156 units 1,542 123 139 139 123 93 139 123 123 139 123 139 139

7 200Ah Narada battery Pcs 552 44 44 44 44 44 50 50 55 44 44 44 44

8 Network Cable

8.1 CAT 5e, Normal UTP M 1,154,879 92390 92390 92390 92390 92390 103939 103939 115488 92390 92390 92390 92390

8.3 CAT3 (3 pair,UTP) M 658,491 65849 52679 46094 52679 46094 59264 52679 65849 52679 59264 52679 52679

critical inventory management, monitoring and inventory trend study system for sri lanka telecom plc

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