Grad Project I

“Implementation of an
Inventory Control System in a
Clothing Factory ”
Faculty of Engineering
 MSA
October University for modern Science & Arts
Faculty of Engineering
Department of Industrial Systems Engineering

Implementation of an Inventory Control System in a Clothing Factory

 
A Graduation Project
Submitted in Partial fulfilment of B.Sc. Degree
Requirements in Industrial & Systems Engineering

Prepared By
Abdel Rahman Emad Ezzat Salama 161467
Mohamed Mahmoud Shalaby 173433

Supervised By
Prof. Dr. Nahed Sobhi
Dr. Sameh Ahmed Salah

Fall 2020
 Presentation Outline
1. Factory Overview
2. Problem Definition
3. Project Objectives
4. Production Planning
5. Introduce Material Requirement Planning
6. Implement MRP
7. Conclusions
8. References
 1. Factory Overview

M-star Company for trade and industry has been established in 1995 and works in the fields of

manufacturing of clothing and producing customized cloth for the Egyptian tourist market and for films in

publicity and announcement, by printed T-shirts carrying the logo of the firm, such as Coca Cola Company.

Figure 1 Product A Figure 2 Product B

 Factory Overview

Process Flow Chart

Loading Layering Cutting Inspection Sewing Sorting Ironing Packaging

Figure 3 Process Flow Chart

 2. Problem Definition

 After reviewing the historical data of sales orders through the previous two years, it was noticed that

there were some orders that got cancelled due to the late time of receiving its raw materials, which

leads to the product finishing later than lead time specified.

 Rejecting or canceling some orders lead sometimes to increase in raw material inventory.

 Inventory costs are high, raw materials inventory level is very high leading to defects.
 3. Project Objectives

The aim of this project is to construct a plan for the suitable ordering quantities of raw material required

for every season to meet the sales orders in the accurate time.

This will be achieved through the following steps:

 Investigation of the company sales orders for the previous years to specify the orders reasons.

 Collecting data on ordering and back orders.

 Planning a MRP system to help in solving the problem of ordering quantities.

 Implementation of the proposed modification and analyzing the results.

4. Production Planning

Figure 4 Production Planning

 5. Interduce Material Requirements Planning

Material requirements planning (MRP) is a vital component in the supply chain. It acts as the system's bridge
between master planning and production. MRP helps determine requirements and maintain priorities. The
ASCM Principles of MRP seminar assists beginning and experienced planners to use an MRP system.

Figure 5 MRP System

 5. Interduce Material Requirements Planning
Sample from past record

The require 200 tons of A items at 5 week, Lead data from BOM A
Final product A is consist of 2 tons of B part & 3 tons of C parts.
B(2) C(3)
Figure 6 Case Study of MRP

Item Lead time(1 week) safety stock In hand Order type Scheduled recipes

A 2 - 10 L2L 0
B 1 - 10 L2L 0
C 1 - 10 L2L 0
  13

Table 1 Inventory File

5. Interduce Material Requirements Planning
sample from past record

Table 2 MRP Sheets

 6. Implement MRP

 Reduce Component Shortages, Improve Shipping Performance.

 Simplified and Accurate Scheduling.

 Improve Production Schedules, Reduce Lead Times.

 Reduction in Excess Inventory , Reduce Overtime.

 Improve Calculation of Material Requirements , Improve Supply Schedules.

 7. Conclusion

As result of the implementation of the MRP system it will lead to reduce the time taken due to lateness and

canceling ,also will solve the problems of the ordering quantities which can be optimized. It also will reduce

the cost of the inventory due to storing and reduce the defects.

The MRP will have suitable lead time which can be solving the quantity of the Raw material.
 8. References

1. https://www2.slideshare.net/SachinKhandagale3/mrp-case-study?from_action

2. https://www.sciencedirect.com/topics/engineering/production-planning

3. https://accountlearning.com/production-control-meaning-objectives-functions-advantages-requirements/