PRiMEX met with Universal Solar Products to discuss the company's productivity and inventory control problems and outline a plan for improvement. The project involved collecting data for analysis, and PriMEX helped the company to classify its products according to Pareto analysis (ABC). Together, they identified the highest priority products for control based on volume in units and annual dollar value. Next, they developed charts to observe trends and computed the parameters of the inventory control system. They also used the historical data to validate suppliers’ lead times.
PRiMEX proposed an MRP system for the raw materials and the use of a pull system for purchasing planning and inventory control. Universal Solar Products implemented standard operating procedures for materials receiving, purchasing, and materials planning. It also implemented cycle counting to replace the physical counting of inventory items and enhance purchasing and inventory control functions.
The engagement with PRiMEX reduced inventory costs by a significant margin. Universal Solar Products was pleased with the project delivery and agreed to work with PriMEX on other improvement projects. The company plans to participate in a 5S pilot project (Sort, Set in Order, Shine, Standardize, and Sustain) to optimize space in the warehouse. It will also work to develop the leadership skills and competencies of production personnel.