IMPROVE OPTIMAL RAW MATERIAL INVENTORY CONTROL BY MINIMIZING DISCREPANCIES TO IMPROVE PERFORMANCE TOWARDS STANDARDIZATION OR BETTER

Abstract

This thesis is intended to conduct an optimal improvement strategy in raw material stock management with a lower mismatch rate to obtain better company performance and realize higher standards. Good stock management is essential in the manufacturing process and has an impact on productivity. Discrepancies in inventory, caused by recording errors, damage, theft, and process inefficiencies, often hinder company performance and pose operational challenges. This study provides answers to questions regarding the main causes of inconsistencies, the implications of inconsistencies on operational performance, the best solutions to reduce inconsistencies, and implementation plans to improve performance and standardization. The results showed that the use of technology and training programs significantly reduced human errors, improved inventory accuracy, and provided real-time visibility into stock. By reducing discrepancies, the company was able to improve operational efficiency, reduce costs, and ensure more consistent availability of raw materials. It also facilitates better standardization of processes, improving the overall performance of the company. The goal is to ensure business sustainability and long-term competitiveness.