RISK ASSESSMENT OF INVENTORY DISCREPANCY IN WAREHOUSE PROCESSES USING FMEA-QFD AT PT XYZ

Abstract

This study was conducted to identify and mitigate inventory discrepancies in the spare parts warehouse of PT XYZ, following a 0.94% discrepancy rate in 2024 amid rising production and inventory volumes in 2025. A structured methodology was applied by integrating Root Cause Analysis (RCA), Failure Mode and Effects Analysis (FMEA), and Quality Function Deployment (QFD). RCA identified 45 causes across six warehouse processes, FMEA prioritized 25 based on risk scores, and QFD translated them into nine technical requirements (TRs) for mitigation. Key TRs such as mobile barcode/RFID (TR6), ERP–WMS integration (TR5), CCTV (TR1), and daily briefings (TR3) directly addressed critical failure modes. Implementation of these mitigations reduced discrepancy by 65%, from 0.94% to 0.32%, surpassing the 0.5% target. KPIs also improved: 100% lead time receiving, 100% packing accuracy, 99.66% binning accuracy, and 100% item confirmation. Posting lead time improved by 2.1%, or 129 transactions, due to mobile barcode usage. The combined system, procedural, and behavioral interventions—supported by training (TR2), SOP enhancements, stock taking (TR7), and violation penalties (TR8)—proved effective in enhancing accuracy, discipline, and control. This integrated RCA–FMEA–QFD framework serves as a strategic model for improving inventory performance.