Improvement of Inventory Turnover by Lean and TQM Tools in a toy Trader Company SME

Abstract

This research article focuses on implementing the lean manufacturing model and the TQM philosophy in a company in the toy sector that presents difficulties concerning the choice of its best suppliers, the control of its supply for demand and storage, and the standardization of its processes. These problems result in low inventory turnover, directly affecting the economic impact. The overall objective of this research is to increase the inventory turnover rate. A problem tree identified root causes, allowing the development of a model based on implementing Lean Warehousing tools such as 5s, standardized work, Slotting, Master Planning Schedule, and TQM. Subsequently, the proposed model was validated through a simulation in Arena software and a pilot test. Finally, the model increased inventory turnover by 117%. Likewise, the secondary indicators, such as the internal audit of the 5s, product extraction time, storage cost, and cycle time, increased by 56.52%, 50%, 30.96%, and 71.23%, respectively.