Implementation of the ABC & Layout Method to improve inventory management of a small company in the textile sector (#811)

Authors

CHACON SILVA, ABIGAIL ESTEFANIA

RAMIREZ RAMOS, MIRELLA LESLIE

TSUKAZAN NAKAIMA, RUBEN OSAMU

Abstract

Abstract– The purpose of this article is to analyze the impact of the implementation of engineering tools on the challenges faced by a small company in the textile industry. The critical areas identified are warehouse and production, where inefficient inventory management stands out, resulting in inconsistencies, significant delays in the picking process and an increase in production costs. Therefore, it is imperative to address these problems to improve the company's economic situation. Engineering tools such as the ABC Method and Layout have been applied, which have been simulated to demonstrate cost reductions. Each tool was evaluated using indicators such as utilization, search time, percentage of time with adequate lighting and percentage of defective products, evidencing significant improvements and the effectiveness of its implementation. In addition, the Minimum Attractive Rate of Return (MARR) of 1.53% was achieved, the Internal Rate of Return (IRR) of 6.75%, which is acceptable because it is greater than 0, the Net Present Value (NPV) of S /.2,463.91 soles, the B/C (cost – benefit) with a profitability index of 1.11. The NPV benefits of S/.24,711.61 soles are also obtained, an acceptable amount compared to the company's expenses and the NPV expenses of S/.22,247.70 soles. Keywords – Textile, ABC, Layout, Inventory, Production