Saving dollars, space -- Thanks Lean Six Sigma
March 10, 2009
- JMC saving resources
ROCK ISLAND ARSENAL, Ill.-- A team of subject-matter experts from throughout the Joint Munitions Command developed a new process that addresses excess inventory.
The initial evaluation of 153 items found that 43 items could be removed, resulting in a cost avoidance of $2,391 in inventory program costs and clearing an additional 82,243 cubic feet at the government-owned contractor-operated and government-owned government-operated plants.
That is approximately 64 milvans worth of space. The team's task was to reduce the amount of industrial stocks in storage in order to save dollars and increase available storage space by identifying what stock can be excessed. They focused on the bomb and mortar programs.
The team determined that the accumulation of excess material was in large part due to changes in procurement factors.
They analyzed the current process to identify excess inventory only to find out that there was no standard process used. The production manager usually reviewed existing inventory when new production was scheduled, but there was no disciplined process on how to review and what to do with residual material.
With the implementation of this new process, JMC will continue to have success in reducing storage needs and ensuring that money is well spent in supporting the nation's warfighter.