Friday, November 12, 2010

Executive Summary:

The current conventional method of monitoring the level of inventory of the petroleum in the 8 tanks is labor intensive and therefore lowers the productivity and efficiency of the staff. Furthermore, issues of measurement inaccuracy may result in supply shortage or excess. Therefore, the auto-replenishment project is initiated to automate the inventory monitoring activity and to enable triggering for replenishment at the correct quantity and at the correct time. 
The adoption of high technology measuring instruments is intended for level monitoring of all the tanks across the plant. This will enable the provision of a real-time data of the inventory level with much greater accuracy. With wireless enabled equipment installed, the real-time data can be updated into the system. Moving forward, we will also implement e-Kanban system to allow auto-triggering of order to the suppliers whenever inventory level of petroleum reaches the re-order point. This is to help eliminate problems with manual entry errors and can be used to optimize tank levels by better tracking vendor’s replenishment times.

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