Correlation between quantity and the fluctuation in customer’s order-Case study: Nippon Injector Corporation
Trang, Pham (2020)
2020
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020100721077
https://urn.fi/URN:NBN:fi:amk-2020100721077
Tiivistelmä
Production and demand are the two categories that always go together because if there are needs, there are supplies. The production level that meets the market demand, is the perfect situation that every company is leading towards.
This thesis was commissioned by Nippon Injector Corporation. The case company is a manufacturing company located in Japan, and it produces parts of car engine. One of the big problems that the company are still seeking for solution is increasing efficiency in production, and to do that, the company need to make the production plan match with the customers demand. Nevertheless, because of the frequently changes in order of the customers, the company usually suffers from high material inventory and high finished-goods level. In order to make the efficiency in managing stock level, goods analysis is an important step to start. Therefore, this thesis will analyze the products demand to find its relationship, so that the company can have an overview then come up with an appropriate solution for this puzzle. It is the purpose of the thesis.
The problem root is studied based on three main theoretical frameworks, which are Manufacturing planning and control, Just-in-time and Demand forecasting. The Manufacturing planning and control is about effective management, then Just-in-time explains how important the efficient logistics management is to the company, and finally, Demand forecasting will discuss about making a good forecasting thus enhance the company’s performance. The methods used in the thesis are ABC-XYZ analysis, Correlation coefficient and Test of significance.
The key result is there are correlations between observed components, and they have statistical significance. In accordance with this finding, the company can apply to a longer period to find the trend of the products, as well as expand it wider to make its own forecast, or dig deeper to find the causes for the volatility of the order.
This thesis was commissioned by Nippon Injector Corporation. The case company is a manufacturing company located in Japan, and it produces parts of car engine. One of the big problems that the company are still seeking for solution is increasing efficiency in production, and to do that, the company need to make the production plan match with the customers demand. Nevertheless, because of the frequently changes in order of the customers, the company usually suffers from high material inventory and high finished-goods level. In order to make the efficiency in managing stock level, goods analysis is an important step to start. Therefore, this thesis will analyze the products demand to find its relationship, so that the company can have an overview then come up with an appropriate solution for this puzzle. It is the purpose of the thesis.
The problem root is studied based on three main theoretical frameworks, which are Manufacturing planning and control, Just-in-time and Demand forecasting. The Manufacturing planning and control is about effective management, then Just-in-time explains how important the efficient logistics management is to the company, and finally, Demand forecasting will discuss about making a good forecasting thus enhance the company’s performance. The methods used in the thesis are ABC-XYZ analysis, Correlation coefficient and Test of significance.
The key result is there are correlations between observed components, and they have statistical significance. In accordance with this finding, the company can apply to a longer period to find the trend of the products, as well as expand it wider to make its own forecast, or dig deeper to find the causes for the volatility of the order.