Lean Inventory Management For C Company In Medical Device Manufacturing Industry

The control and management of inventory is now a vital problem experienced by almost all organizations in every industry. Neglecting the significance of inventory management can simply lead to the immediate impact on operational level and financial result, which will eventually make the company grind to a halt with the business capability and customer satisfaction. At present, as a result of the rapidly evolving demands and increasingly competitive business, inventory management is prominently essential to global medical device industry.Inventory Turnover is widely acknowledged as a way to measure the cash flow status and reflect the supply chain management capability of a company. Therefore, inventory turnover is generally indicating the inventory management level of an organization. The increase of inventory turnover accelerates the fund flow, and improves the cash utilization rate and liquidity.The objective of this paper is to study and analyze the root cause of the inventory that exists in a medical device manufacturing facility, and offer countermeasures with groundbreaking solutions towards different types of inventory, including raw material pull system establishment, supply chain inventory reduction by Heijunka scheduling and U-shaped cell infrastructure design as to reduce the online WIP (Work in Progress). Waste will be eliminated throughout the whole processes from procurement to shipment. As a result, inventory turnover will be improved, cash flow will be released, and operational capability will be increased.