Before: The production of the EOS Negative SS was scheduled every day, even if thus process is faster that the OM, this resulted in an accumulation of the inventory at 50k parts at the warehouse, this uses extra space, risk of damaging parts, and the Press 92 is not being utilized to produced other part numbers taking advantage of the extra capacity.
After: Created an Inventory Level & Point of order process based on a statistical calculation, this will allow us to reduce the space occupied at the warehouse and utilize press 92 to produce other part numbers while consuming the surplus inventory of the EOS negative SS.
The 22,000-piece reorder/restart point provides approximately 8,000 pieces of available inventory above the adjusted protection level. This allows us to use some of the WIP-producing press capacity for other part numbers while still maintaining the desired protection.
The 2–3.5 days/week of available capacity for other part numbers should be viewed as a planning range rather than a fixed commitment. The actual allocation should be adjusted based on the current WIP level, upcoming demand, downtime, and the need to recover inventory back toward the 30,000-piece target.