Managing information and supplies inventory operations in a manufacturing environment. Part 1: An action research study

Abstract

In the first part of this research study, we describe the application of the action research method in the nuclear fuel manufacturing industry to process information and to develop a lean operating supplies inventory program. The motivation for our work stems from the interaction we had with AREVA Richland, the nuclear reactor fuel production site located in the state of Washington to investigate the important role that information processing and maintenance inventory play in keeping the production process functioning on schedule. AREVA's data systems are not well documented. Hence, designing a methodology to obtain good data and perform any validity checks was critical for the company. Additionally, the importance of meeting delivery schedules to nuclear power plants throughout the world cannot be overestimated. Late deliveries of fuel can easily destroy the precise schedules for power plant outages designed to minimise plant downtime and maximise electric power output. Therefore, AREVA cannot tolerate significant production schedule deviations. Maintenance items play a key role in ensuring that production schedules are met. AREVA has about $700,000 tied up in maintenance inventory at their Washington state plant. Hence driving this investment down, while maintaining a high fill-rate, is crucial. Through the deployment of process maps, failure mode effect analysis and cause-and-effect diagram, we managed an action research project that helped process information flow along the company's supply chain and generated a 27% reduction in inventory relative to the system that was currently in place at AREVA.

Keywords:

• action research
• manufacturing information systems
• inventory management