Reducing WIP Inventory of Production Line in AQ Segerström a Svensson AB

The major objective of present study is to find out the sources which cause higher Work in Process (WIP) in the production line. In which a detailed analysis is performed in the area of inventory, reorder point, Takt time, and Kanban. All the analyses are based on the data obtained from the company’s ERP system and have been used to run some scenarios during the analysis.Lots of problems are responsible to cause higher WIP. But current report only focuses and concentrates in leveling the work load, implementing pull system, suggesting reorder point and Takt time.The current situation is described through Value-stream Map (VSM) and the impact cost matrix is used to show the impact of each problem in the production line in terms of costs. In the analysis chapter, root cause method has been used in order to show the cause and effect of higher WIP. Detailed analyses together with explanations are listed by orders. Therefore, three major suggestions are proposed and the future VSM is plotted to show the effect and change of the suggestions which helps to improve the current situation by eliminating the waste.