Inventory management of HPA circuit breakers

Abstract

For the purpose of determining the exact cause of high inventories the stores stock of the input material for the of the HPA breakers was reclassified into various categories. To begin with, this would help in analysis and later on would be helpful for follow-up. It has been found that, the imported items (38%), bought out items (20%) and Raw material(13%), form 71% of the total inventories. With WIP constituting 11% of the inventories, the rest of the stores stock is a very small percentage of the total (18%). Controlling the stock of major items forming 75% of the total inventories will trim the total inventory to a very large extent. Obviously therefore the first thing to do would be tackle inventories that hurt the most. Of the store stock the imported items and bought out items need to be tackled at first followed by raw material. It appears that if these are properly handled then the inventory would not remain as big a problem as it presently is. This would also give substantial cost reduction for the products, which in turn would become more competitive. Once the system is stabilized, the methodology and logic will be applied for other types of breakers also.