The application of six sigma to improve textile factory inventory costs
Faculty of Engineering, University of Greenwich, Central Avenue, Chatham, ME4 4TB.
Research Article
World Journal of Advanced Research and Reviews, 2024, 21(02), 1918–1934
Article DOI: 10.30574/wjarr.2024.21.2.0497
Publication history:
Received on 01 January 2024; revised on 10 February 2024; accepted on 12 February 2024
Abstract:
In the textile industry, the inventory management is pivotal for sustained success in a competitive business environment. This research, informed by an investigation into data from previous research conducted in textile factories, systematically explores the application of Six Sigma principles to address challenges in inventory management. The study utilizes the Define, Measure, Analyse, Improve, Control (DMAIC) framework to investigate and enhance inventory practices. Initiating with the Define phase, the research articulates existing issues through the project charter, setting the stage for the subsequent phases. In the Measure phase, Pareto analysis identifies key contributors to the inventory costs, including materials such as "Cotton 1/30" and "Cotton 1/24," which collectively constitute 75% of inventory costs. It is noteworthy that these materials are crucial components used in production processes, as revealed by insights from the previous research.
This important discovery forms the basis for the Enhancement phase, in which the research strategically applies a Just In Time (JIT) system, resulting in a 50% reduction in the level of inventory for "Cotton 1/30" and a 70% reduction for "Cotton 1/24". Two Production Withdrawal Kanban cards as well as seven Production Instruction Kanban cards for "Cotton 1/30" and "Cotton 1/24" are required for the execution. This strategic shift aligns with market demand and results in a significant 55% decrease in holding costs.
Keywords:
Inventory Management; Six Sigma; DMAIC; Textile Industry; JIT; Kanban
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0