Improvements of a material procurement decision case study : electrical and electronics industry

Abstract

The objective of this research is to improve for material procurement decision support making process by using Lean Concept. The research methodology, studied purchasing procurement and whole of production in local country of case study by making Value Streaming Mapping (VSM), calculated of production standard time, set buffer time kept inventory and suitable supplier’s capacity. Finally, used all data for design and develop computer program into support analyze and follow up delivery goods system to customer. Result of research found this new development program could increase delivery goods to customer efficiency by response with material preparation can improved average On Time Delivery rate at 94.55% and increased productivity from 966 to 1,125 pcs/day; therefore, case study had well increased local purchasing procurement efficiency, reduced purchasing cost to 2.27 million Baht/month, reduce Fuel cost at 46,225.08 Baht/year on average and reduce greenhouse gas at 4.117 TonCo2e per year on average. They can support highly competitive and rapidly changing of electrical and electronics industrial to sustainable in the further.