Abstract:

The purpose of the research carried out within this paper was to measure performance metrics before and after implementing a comprehensive 6 month improvement project at a multinational automotive industry supplier from Western Romania. Data from logistics, production organization and performance quality was gathered and analyzed within a period of 52 weeks for a range of 14 relevant suppliers from Germany and Europe. Correlations were found between longer distances and inventory rates, carried inventory and associated scrap rate, as well as excess inventory and process scrap range to different extents, our results only partly confirming our expected research outcomes. Conclusions outline a significant 70% inventory reduction, as well as matching scrap rate improvements (71% for German and 57% for European suppliers’ processes) by applying the EOQ model and Kanban method within an aligned continuous improvement project. Supplier and customer delivery service rates were also improved by around 50% within other performance metrics as a result of an overall better balanced working environment.