University of Twente Student Theses


Optimizing processes at the spare parts warehouse Of Port Elizabeth

Soltani, F.H. (2016) Optimizing processes at the spare parts warehouse Of Port Elizabeth.

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Abstract:The goal of this research was to increase the control over the inventory of spare parts at APM Terminals’ Port Elizabeth in New Jersey, U.S.A. This research is conducted by order of APM Terminals Head Quarters. Absolute inventory inaccuracy at the terminal of Port Elizabeth in 2014, was 56%. Also a depreciation of $1 million was detected and less than 60% of purchased goods where issued through correctly followed steps. Inventory was stored on different location around the terminal, managed by various departments of Maintenance & Repair. We started off with a performance check to get an understanding what aspects required most attention. This Warehouse Excellence Scan (WEX) assessed all the main areas for warehousing spare parts; People, Process and Product, through scoring the categories; safety, health, security & environment, people, process, inventory management, workplace organization, CMMS/WMS, performance management and continuous improvement. The overall warehousing results of Port Elizabeth were low in maturity, 1.86 points of the 5, and required changes mostly in process standardization. Processes scored a mean of level 1, which indicated that there were no warehouse processes defined. The WEX advised us to increase inventory control by process standardization through implementing Standard Operating Procedures (SOPs). Installing SOPs was, as implementing any change, a phased project with writing the SOPs through specifying, documenting an reviewing. Thereafter we trained staff so they could execute the procedures. Where after we advised the terminal to maintain the SOPs on a yearly basis. The extent of the SOP implementation can affect the control of the inventory at Port Elizabeth through various ways. Firstly the SOPs steer towards usage of IFS, which increases insight in the movement of parts. Next to that SOPs avoids variations, regardless of the operator and time of operation. Also SOPs help facilitate the transfer of knowledge and skill, so this will not get lost when there is a change of staffing. But SOPs are not all roses, when written poorly the procedures can affect the company negatively. As result of our efforts in SOPs among other things, the estimation in August 2016 was that a value of $3,8 million, 75% of the purchases for Maintenance and Repair, went through the STRONGER solution J-cat. This indicated the magnitude of controlled purchasing. The value of inventory that was issued through Work Orders summed up to around $3 million, which is 80% of all issued material being obtained through the SOP’ set way of working. Recommendations of this thesis are to create more SOPs for warehouse processes, share them with colleague terminals and to take a look at warehousing within other heavy material industries.
Item Type:Essay (Bachelor)
APM Terminals, Den Haag, The Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:01 general works, 58 process technology, 85 business administration, organizational science
Programme:Industrial Engineering and Management BSc (56994)
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