|
Applying Lean and Six Sigma Concept to Reduce Inventory Cost of SME in Thailand After Covid-19 Crisis : A Case Study of Takara Planning Company Limited |
|---|---|
| รหัสดีโอไอ | |
| Creator | Dusadeerat Kosumsiri |
| Title | Applying Lean and Six Sigma Concept to Reduce Inventory Cost of SME in Thailand After Covid-19 Crisis : A Case Study of Takara Planning Company Limited |
| Contributor | Ruompol Jantasart, Surat Janthongpan |
| Publisher | Southeast Bangkok University |
| Publication Year | 2566 |
| Journal Title | Supply Chain and Sustainability Research (SCSR) |
| Journal Vol. | 1 |
| Journal No. | 3 |
| Page no. | 70-81 |
| Keyword | SMEs, COVID-19 Crisis, Lean Six Sigma, DMAIC, 5S, ECRS, Inventory Cost, Warehouse Management |
| URL Website | https://so08.tci-thaijo.org/index.php/SCSR/index |
| Website title | https://so08.tci-thaijo.org/index.php/SCSR/index |
| ISSN | 2822-0412 |
| Abstract | During COVID-19 lock down crisis, most of SMEs who are exporter, faced the problem of high inventory holding costs, especially the cost of warehouse space rental that tend to keep increasing, due to a sudden product halted and massive returned products leading to cause disorganised warehouse and improper inventory control. For SMEs, warehouse space has a significant impact on their operational cost. Once the shipment arrives at the warehouse, it becomes the warehouse's responsibility to manage the movements and transfers of the goods. The purpose of this paper is to analyse and improve the warehouse space resulting in reducing of the inventory cost of the company by applying the 5S tool and ECRS principle for Lean, together with applying Six Sigma (DMAIC) technique for problem analysis and improvement. The result showed that applying Lean Six Sigma techniques, as described in this paper, can reduce the warehouse rental cost from 8,140,000 Baht to 5,816,400 Baht by lean warehouse space from 92% to 62% occupancy. After implementing the proposed methodology, the business owner and managers saw an improvement in their warehousing operations in terms of inventory cost saving by 2,323,600 Baht and the potential of the production line expansion after COVID-19 crisis utilising the available space gained. This study illustrates that Lean Six Sigma can be applied as a 'quick-win' solution for the SMEs in Thailand after the COVID-19 Crisis. |
