Issues of Increased Reliance on Automated Machinery

Review of literature

Nowadays, automated machines and state-of-the-art machinery are progressively substituting

In addition, increasing dependence on automation and machine reliability makes client orders
more sensitive to equipment downtime and provides staff with a secure workspace. In
addition, the customization of equipment for a specialisation increases the risk of failure and
it is more difficult to forecast and prevent such failures (Cortes & Morales, 2012).

In contrast, many organisations have waste-reduction and urgent response plans in place.
Therefore, companies have developed methods with low inventory levels at hand and in the
production process, which have a direct impact on client service in the event of equipment
breakdown. Extended downtime of equipment in the production process does not reduce
inventory on hand (as a rule, the client would be unaware of), but rather produces delay in
delivery to the customer in real time (Cortes & Morales, 2012).

This problem concerns the manufacturing industry, and the use of software tools is therefore
vital for keeping an inventory track and its financial costs. However, it is restricted to the
criticality of inventory and equipment in the production facility (Rawat, 2015).

In order to prevent downtime and associated costs, the high initial cost of acquiring the
software is a harsh blow to small and medium enterprises finances, not only because it's easy
to use inventory software. Still, it is clear that organisations using the programme have had
difficulties in determining the criticality, priority and hierarchy of their inventory.
(Switzerland, 2015).

According to the above, Voltron WEG Group has no inventory management software and
uses inventory system with periodic review, which produces power, distribution and
speciality transformers. The correctness of the inventory at hand was wrong since a big
number of products were available for long-term distribution throughout the entire inventory
(Gutierrez, Panteleeva, Hurtado, and Gonzalez, 2013).

The above periodic review inventory model proposes some criteria for inventory items such
as: quantities of production, costs, safety, maintenance, suppliers, etc. The ideal strategy to
manage inventory is therefore to apply an APC arrangement to components with higher
significance and this is extremely suitable for the Voltran WEG Group to administer and
modify its inventory.

When employing this strategy, the company gained by knowing which items were vital and
which were highly demanded, and determining the best service standards. The corporation in
turn reduces the overall inventory of the plant by cutting its inventory on hand costs. This
enables the enterprise to plan production to finish customer orders on a timely basis and
reduces penalties and fines for failure to deliver its products (Gutierrez et al., 2013).
However, the views on inventory management in a manufacturing plant are diverse. These
rely on what should be stressed as the ultimate goal. The delivery times can be shorter, the
customer service highly satisfied, cost of items, stock levels or many other possibilities. This
is why it is essential to apply the finest techniques to manage their resources for most small
and medium-sized businesses. Instead, inadequate inventory management could lead to loss
of sales and the loss of crucial clients (Izar, Ynzunza, Castillo, & Hernandez,2016).

Another example is the strategy employed in a pasta production facility that designed a
maintenance system to maximise the usage of raw materials and replacement parts damaged
by emergency and unintended production downtimes. (Leipzig, 2014). The organisation
sought to manage with Microsoft Excel in the absence of a computerised maintenance
management tool. The hierarchy and criticality list of equipments was developed so that the
equipment could be arranged and the maintenance personnel performing preventative
maintenance on plant assets could develop a list of work tasks. (Roussillon, 2011).

After the installation's circumstances were established, it was concluded that a maintenance
plan would help to predict the underlying causes of the equipment downtimes. The results of
the work were obtained. This will help organise a maintenance programme to improve the
manufacturing and maintenance of equipment. An analysis of the criticisms of each machine
in the plant was also essential to establish its value. (Leipzig, 2014)

In addition, the new Chen (2011) methodology, which is proposed by Chen and based on the
assessed criteria and percentages, is the inventory ranking of the old ABC technique, which is
a multidisciplinary inventory classification methodology (MCIC). This new ABC inventory
methodology stands out as more rational and easier to understand when comparing Chen's
methodology with existing MCIC systems.

However, the slow-moving items in inventory management are the most successful technique
if a more efficient proposal is needed to handle modest inventories (Chevreux, 2010). This
method was introduced at a manufacturing company with a small number of components in
its inventory and aims to store all the key components in minimum quantities. In general,
inventory management is highlighted from the analyses and instances provided above.
Moreover, information on the review of books can be compared to others for inventory
categorisation. ABC technique.

Inventory of conceptual framework

An inventory is the storage of various material kinds utilised to meet a demand at a certain
period. The stock hypothesis is that the quantities of resources that come from suppliers and
are distributed to customers are controlled and planned. (as referred to in Moya, 1991, p. 19).
Inventory is defined according to Moya (1991) as the build-up of material to meet future
requirements.

On the other hand, Heredia (2007) verifies that an inventory can, as a whole, be described as
all sorts of materials, raw materials, items and products utilised during a process of
production, and all products or things used in a company's production or services, directly or
indirectly.

Management of inventory
Inventory management consists of controlling the demand requirements in a productive
process, but is aimed at the end of client orders (Gonzalez, Guerra & Montes, 2006).

It may be said that the general purpose of inventory management is to keep the supply and
demand times of every kind of material in a rhythm. Gonzalez et al. 2006, for example.

Satisfaction of customers

This is a key and key goal since it demonstrates the quality of each customer's service
because it enables the expectations and impressions of the encounter to be matched. (The
Holy Foundation, 2007, p.31)

Theory Framework

The following themes are contributions by diverse authors, which contribute significantly to
the next task by their performances. Moreover, in the analysis of inventory management that
can be used for industrial or research purposes, numerous models are shown.

That's why organisations that operate and want the inventory management to highlight. You
can contribute to the firm and use one of the following systems.

Inventory check on hand

All big businesses are planning or managing inventories. It may be the blood bank to track
the stock levels or a financial bank to keep track of their funds. The enterprise does not have
to become a productive enterprise.

This is a list which must be continually updated. To stop the usage of unneeded items and to
maintain a reliable database without causing inventory issues, it becomes necessary to
employ software tools and procedures. (Monks, 1997). Monday.

ABC Review

The inventory of the components depends on the use and maintenance of machinery.
Inventory management of the replacement parts is a difficult challenge which must be
assessed according to several criteria as specified in Jouni's, Huiskonen's, & Pirttila (2011).

In order to classify and comprehend how inventories might be classified, the various aspects
like purchases, costs, supply and demand, among others, must be understood, according to
Cortes and Morale (2012). As an instrument for gaining control over these elements, the ABC
classification uses percentages for its final classification.

Another writer, for example Wild (1997) who recommends a distribution with the following
values, differ in their percentages of the items A, B and C:

Class A items = 10 percent of all items, with an overall use of approximately 65 percent.

Items Class B = 20%, with approximately 25% of the total utilisation.

Class C items = 70% of all items with around 10% of total utilisation.
Inventory of ABC

In order to regulate hundreds, the Group of Assets is called ABC, A - Extremely Important, B
- Moderate and C - relatively unimportant, based on the physical properties, their importance,
their costs, their suppliers and maintenance levels. The ABC classification is then used to
identify things to manage inventories the most appropriate way (Kirche & Srivastava, 2005).

Inventory management Pareto Chart

In 1907 the economist Vilfredo Pareto (1848-1923) stated that in Italy 20% of the country's
population was making 80% of the money. The smaller group was named "essential few" and
"trivial many" the other groups. This was eventually referred to as "Rule 80-20" or Pareto Act
(Muller, 2004).

Because the criteria can create several measures, the values of each criterion should be
grouped. In order to classify the inventory, the Lung Ng (2007) advises that all criteria
assessed by an item in an inventory be converted into scale. The results of the first ABC
without a linear diagram are based on this method.

Illustration 1. Conduct the yearly item percentage

Source: Source: (Kirche & Srivastava, 2005).

The Pareto graph, then, shows the proportion of accumulated parts composed of the
percentage of usage as shown in Figure 1, when the graph is used in the ABC analysis in
classifying inventory. This graph shows the Pareto graph.

When applying the device within the plant for crucial replacement components, constraints
must be defined to specify the classification of the ABC and the behaviours (Kirche &
Srivastava, 2005).

Cost of missing components

In Pince and Dekker's 2011 estimates of production downtime costs, the element that
involves recurring missing spare parts in the supply chamber after minimum levels have been
fixed. The authors offer investigations carried out under the reliability technique, which
enable decision-making in developing systems approximating the minimum inventory
quantities. However, in the context of an inventory management system, the cost of
maintaining replacement parts in stock is crucial.