Non Value Added Time Reduction and Process Cycle Efficiency Improvement by Implementing Inventory Management System

Abstract

This paper depicts how Inventory Management System was used to eliminate Non Value Added Time in a manufacturing plant. A current Process Cycle Efficiency was measured and data for constructing the present Process Cycle Efficiency was collected through production line visits, interviews of employees and observation of machine’s function at different production stages. Different causes of Non Value Added Time was determined. Regression analysis with the help of Minitab software were applied to evaluate most affected causes of Non Value Added Time. At present, Process Cycle Efficiency was found 63.47%. In order to improve Process Cycle Efficiency and to Reduce Non Value Added Time it was proposed to implement Inventory Management System, it was evaluated that future state Process Cycle Efficiency would be improved to 67.78% at initial stage.