Abstrait

Reengineering Approach in Materials Management

Muthu Visuvanathan

During the decade of 1990s, reengineering has captured the imagination of many industry leaders across the globe. Reengineering has been used by many companies for the pursuit of organisational efficiency through automation, labour saving and streamlining systems and procedures and the management reforms through business, market, technology and organizational development. We are doing our project in private Cement manufacturing plant. The problem in cement industry is high inventory level. So our main objective is to reduce the high inventory level in cement manufacturing plant. Reengineering concept will accepted in industry as a strategy initiative. Reengineering has been considered as a multidimensional problem solving approach, emphasizing on very significant improvements in the organizational performance in terms of multiple parameters such as quality, cost, delivery, etc. to gain competitive advantage. Reengineering project relating to the materials management function of a cement manufacturing plant is presented in this paper. There are 5 inventory control policies are used in this project. They are perpetual review policy, Periodic review policy, Two bin policy, Material requirements planning, Optional replenishment policy. By using AHP (Analytic Hierarchy Process) methodology is used to select best optimal inventory control policy. And implement best policy to reduce high inventory level. AHP is a multiple criteria decision-making tool. Material Requirement Planning (MRP) is selected as best inventory control policy by using AHP methodology. After implementing MRP in industry, it controls the high level of inventory and begins production of order at right time. It plans manufacturing activities, delivery schedules and purchasing activities in the industry.