Abstract:
rhe present stlldy was conducted On a local transformer manufactunng
company. This is a fabrication/assembly organization where raw materials arc
procured and processed. The scenario observed in the study is not velY different from
other local industries. Local firms in many cases are very reluctant or pay less
attention in incorporating and utilizing operations managcment techniques such a,
invcnlOry control, scheduling, material requirements planning (l\1RP) etc. The main
rCaSOnof the organi7.ation's unenthusiastic attitlldc is identified as unawarene,,, of
lhc benefits from technology utilization, The lack of knowledge about lhe benefil;1;of
using MRP in variou, aspecls hindercd its wide spread diffusion,
A general perception that the pl'Ocurement of raw materials either in huge
quantity at a lime or in small quanllly from penod to period without adopting any
mathematical approach would not have any sigmficant effect on the total cost still
prevails in the local firms, Practically the situation is djfferent. It has been found thaI
the procurem~nt of matcnals applymg an established algorithm (i,e \\lagner-Whitin
apPl'Oach)imtead of current practice (intuihvc approach) could reduce the invenlory
costs remarkably. In this re8pect (lot sizing) an educational version pl'Odnction and
operation management software named POM was used, The study revealed thaI the
company could <ave as hIgh as 70% inventory cost such as silicon steel. Similar is
the sltuar;on for other materials also.
Besides this, the incorporation ofMRP facilitates the company in many ways
especially in better management such as avoIdance reordering, shortfall, of
materials, idle time minimization, timely delivery of products etc, It is required for
the company to bring in change in many aspects to adapt the MRP system, the
imporlanl of whICh arc the relationship with vendor, con<istent quality of the raw
materials, th~ documcntation pl'Ocess, the reliable lead time etc. Situation could be
improved further if mathematical model for multiple ilems lot s;7-eand variable lot
size could be developed considering the conSlI'aintof store" fund, transport facility
etc.
