DEFINE

1. Six Sigma Project : OAS – 06 – 018 (1W)Project Title : OPTIMIZATION OF ENGINEERING SPARES & EQUIPMENT NOT CRITICAL TO ADB OPERATIONS (2nd Project)Champion : CHATIYA NANTHAM Team Leader : REGINO E. VALDERRAMAMembers :OAFA-FM : Ed De Veyra, Leodegario Amba, Rafael Lim, Dario Ponciano, Ed De Veyra, William Seril, Alberto Roldan, Arnold Jalandoni, EricMartin Cruel,George Villamor, Lamberto Geronimo,

2. DEFINE • PROJECT DESCRIPTION: • PROBLEM STATEMENT : The current non-critical material (spares, equipment and supplies) inventory kept in the Engineering store is in the region of US $ 344,000.00* and doesn’t give clear indication of it’s movement (fast, slow and none) and utilization levels resulting to: • i. High inventory level, • ii. High inventory cost, • ii. Unnecessary spoilage of non-moving stock items, • iv. Unnecessary space usage. • GOAL STATEMENT: • Reduce if not totally eliminate the storage and inventory levels of (2,143 line items*) non-critical engineering spares, supplies and equipment without jeopardizing and compromising the availability of these engineering stock items to support immediate requirements. • Reduction in storage space utilization. • A target of between 30 to 50% reduction of non-critical and non-essential engineering spares and equipment currently stored is being considered within a period of 12 months. This refers to 2,143 line items* listed under the non-critical classifications considered not critical and not-vital to ADB operations. * Physical Inventory Count as of Dec 2004

3. DEFINE • BUSINESS CASE: • Over the years, the inventory of NON-CRITICAL engineering supplies, spares and equipment have been monitored but not closely controlled resulting to unnecessary high inventory level, high inventory cost and uneconomical usage of storage spaces. • Therefore, maintaining an optimal level of stocks based on delivery lead times and availability in the local market is a useful tool in determining whether there is a need to engage and enter a supply service contract with a external service provider. • PROJECT OBJECTIVES: • i. Review of the current level of non-critical, non-essential and non-moving engineering equipment, supplies and spare parts. • ii. Identification of the frequency and necessity of these engineering equipment, supplies and spares to support ADB operation. • iii. Identify the availability and possible sources (local) of these items and the fastest delivery lead time. • iv. Determine whether these equipment, supplies and parts are still usable, obsolete, disposable or for deletion from the current inventory lists. • v. Determine if these equipment, supplies and spare parts meets ADB’s specifications and standards. • vi. Determine if these stock items can be sourced thru the engagement of a Supply Service Contractor.

4. PROJECT TEAM CHARTER • PROJECT TITLE: Optimization of Engineering Spares and Equipment NOT critical to ADB Operations. (2nd Wave) • PROBLEM STATEMENT: The current non-critical material (spares, equipment and supplies) inventory kept in the Engineering store is in the region • of US $ 1,117,056.00 and doesn’t give clear indication of it’s movement (fast, slow and none) and utilization levels resulting to: • i. High inventory level, ii. High inventory cost, ii. Unnecessary spoilage of non-moving stock items, and iv. Unnecessary space usage. • GOAL STATEMENT: Reduce if not totally eliminate the storage and inventory levels of non-critical engineering spares, supplies and equipment without jeopardizing and compromising the availability of these engineering stock items to support immediate requirements. • Reduction in storage space utilization. • A target of between 30 to 50% reduction of non critical and non-essential engineering spares and equipment currently stored is being considered beginning the 3rd quarter of 2006 until the middle of 2007. • BUSINESS CASE : Over the years, the inventory of NON-CRITICAL engineering supplies, spares and equipment have been monitored but not closely controlled resulting to unnecessary high inventory level, high inventory cost and uneconomical usage of storage spaces. • Therefore, maintaining an optimal level of stocks based on delivery lead times and its availability in the local market is a useful tool in determining whether there is a need to engage and enter a supply service contract with a external service provider. • PROCESS: • TIME LINE: Having the identified the different defect categories, its root causes and effects and the criticality of each equipment, parts and supplies measured in terms of availability and sources, it is estimated that a reduction of between 30% to 50% of the current inventory level and cost is achievable within a period of 12 months. • FINANCIAL BENEFITS:The exercise is expected to earn for ADB from between 10% to 15% of the purchased value of the current non critical stock items (non-essential, non-moving and non-critical stock item) identified for disposal at between US $ 80,000.00 to US $ 100,000.00. A projected saving of between 5% to 7.5% from the 2006 OAFA-FM Building Occupancy Budget is similarly expected to be realized. • Members: Jalandoni, Arnold; Seril, William Team Leader: Champion • Amba, Leodegario: Lim, Rafael, Valderrama, Regino E. • Villamor, George: Ponciano, Dario; Asst. Team Leader: Chatiya Nantham • De Veyra, Ed, Geronimo, L., Roldan , A.Eric Martin Cruel Inventory list of 5988 Line items Review Criticality & Item Classifications Review Quantity and movement. Review/evaluate usages Start End Implement disposal, Supply agreement Recommend course of action. Review availability and delivery lead time.

5. Stratification Metrix DEFINE Supplier/Source

6. IDENTIFYING 28 Classifications DEFINE What are these stock items? Do we really need these stock items?

7. Performance Standards DEFINE High Level Need Reduction of the current level of Engg. stocks items NOT Critical To ADB Operations Reduction of material inventory cost without jeopardizing and compromising the required engineering support. Output Unit Output Characteristic ( Big Y ) Classification and identification of non-critical stock items from the current inventory lists that should no longer be maintained, retained and replenished. Also includes stock items to be deleted from the current lists. C T Q The process starts with the review of the current stock items, identification and classification of these in accordance to usability, compatibility with the current equipment, movement and obsolescence. Project Y ( Little Y ) Measure Non-critical stock items must readily available off-the-shelf from any locally authorized distributor. Non-critical items could be purchased thru the initiation of an RP, use of petty cash or a supply contract agreement with a few local service providers. Specification Limits From the current level of 2,143 line items these will be reduced to 30 to 50% USL= 2,143 line items ; LSL = 1,800 line items. Target Within a period of one year commencing the third quarter of year 2006. Total line items going above or more than the USL of 3,600 line items primarily due to purchases of new equipments and spares without disposing of old parts and supplies. Defect No. of Defect opportunities per unit. 2,143 plus 1 line item. Emergency purchases of spares. Failure to conduct physical inventory of critical line items.

8. BRAINSTORMING ALL POSSIBLE FACTORS DEFINE Why do we need this so much equipment and spares stored? What contribute to having this much kept in the Engineering Store? STRATIFICATION OUTPUT (Y) FACTORS MEASUREMENTS QUESTIONS ABOUT PROCESS X VARIABLES REPLACEMENT ARE THESE SUPPLIES, BY FUNCTION/PURPOSE SPARE EQUIPMENT AND PARTS NEW INSTALLATION LOCALLY AVAILABLE STAND BY OFF THE SHELVES? BRAND BY SPECS STANDARDIZATION SIZE, CAPACITIES, RATING OPTIMIZATION OF ENGG. SPARES AND EQUIPMENT CRITICAL TO ADB OPERATIONS CAN THESE BE READILY COLOR AVAILABLE FROM SUPPLIERS/ MANUFACTURERS? YRS. W/ EXPIRATION BY STORAGE REQUIREMENT MOS. HI DELICATE DELIVERY, HOW FAST LOW CAN IT BE MADE? ELECTRICAL BY EQUIPMENT TYPE MECHANICAL INSTRUMENTATION BMS/FMS ARE THE LIST OF IMMEDIATE SUPPLIERS, MANUFACTURERS AND ENGG. BY SERVICE SOURCES READILY AVAILABLE? B & G HOUSEKEEPING ARE REPLACEMENT/EQUIVALENT OBSOLETE BY APPLICATION ACCEPTABLE? NEW TECHNOLOGY HIGH BY COST MEDIUM WILL EQUIPMENT STANDARDIZATION (PER PC.-UNIT) LOW CONTRIBUTE TO STOCK REDUCTION? UNNOWN END USER NO MOVEMENT BY MOVEMENT/UTILIZATION UNKNOWN EQUIPMENT FAST MONTHS WILL LONG DELIVERY TIME SLOW YEARS AFFECT EQUIPMENT AND/OR STORAGE LEVEL SYSTEMS OPERATIONS? RE-ORDER POINT (TO REVIEW BASED MAXIMUM ON UTILIZATION) MINIMUM BY USAGE STANDARD DOES DATA EXIST = SPECIAL BIN CARDS YES COST YES REGULAR STOCK (ENGG. STORE) BY SOURCE YEARLY INVENTORY YES LOCALLY AVAILABLE STOCK ITEM INDENT SPECIAL FABRICATION WILL THIS HELP = YES

9. CAUSES AND EFFECTS (All possible contributors) ANALYZE ORDERING PROCEDURE (RP) PEOPLE O & M SPARES PURPOSE USERS PROJECT AIG DESIGN EXCESS ORDER ABUSE/EXCESS ORDER BUDGET OFF. SHELF AVAILABILTY WRONG SPECIFICATION FABRICATION LOCAL SOURCE STORE CLERK KNOWLEDGE INDENT PROCESSING DELIVERY Availability of Critical stock items NO INVENTORY LISTING EXCESS (DIRECT CHANGE ITEMS) (EXPENSE) DIRECT (TO FULLY UTILIZE) ISSUANCE CONSTRUCTION EXCESS STORE (TURN OVER FROM HQ PROJ.) PROGRAMMED OR PLANNED STOCK ITEM STORAGE WRONG TAGGING OR MARKING PROCESS SAFEKEEPING BUDGET CRITICALITY RECEIVING WRONG SPECS COST REDUCTION PROCESS (INVENTORY) WRONG LOCATION BUDGET POLICIES (STORAGE & RECEIVING) MATERIAL HANDLING From the list above, all indirect causes and effects to be cancelled out through brainstorming.

10. PROCESS MAP :Need for regular stock items (equipment, parts and/or supplies) from the Engg. Store and stock replenishment. PROCESS A DEFINE End Users O A F A - F M START Need for stock item Prepare withdrawal Form/slip Prepare Purchase Requisition End-user prepares withdrawal Follow steps 4 to 8 END 8 BCC, CSC Etc. 2 User receives item and accomplish work 3 END Approval Solicit withdrawal Approval from SEO SEO Head, OAFA-FM Solicit approval of RP by Head, OAFA-FM 1 4 OAFA-FP YES Submit to MMU for stock item issuance Check availability from Engg. Store 5 Advises end user 6 NO MMU-Store Releases stock items Delivery, receive and storage O A I S - P C Forwarded to OAIS- PC for action Canvass, Request for Quote, issue PO Locate possible Source or supplier

11. DEFINE PROCESS MAP :Need for stock items (equipment, parts and/or supplies) for a particular A I G Project. PROCESS B End Users START Need for stock item End-user receives and accept delivery Accomplish and complete project. END O A F A - F M 1 9 9 BCC, CSC Etc. 10 Prepare Purchase Requisition Keep/endorse excess materials in separate store. Approval PR is prepared without checking availability of required parts or stock item from the store. SEO 2 Informal turn-over for safekeeping purposes and unrecorded items. Head, OAFA-FM Solicit approval of RP by Head, OAFA-FM 8 OAFA-FP Advises end user 7 Delivery, receive And storage 3 6 O A I S - P C Forwarded to OAIS- PC for action Canvass, Request for Quote, issue PO 4 5 Locate possible Source or supplier

12. Actions Taken, Application of FMEA MEASURE Six Sigma Project : OAFA - FM Team Leader : Regino E. Valderrama Team Champion : Chatiya Nantham Members: W. Seril, L. Amba, R. Lim A. Jalandoni Failure Mode & Effects Analysis (FMEA) as applied The application of the Failure Mode & Effect Analysis, FMEA, has effectively reinforced the “theory” and identification of the various engineering items classified critical to Asian Development Bank operations. The FMEA shown in the next slide clearly justifies the failure effects and its respective causes of having these critically classified services properly identified and marked.

13. FMEA applied to determine criticality MEASURE Determination of criticality to ADB operations of 28 classification.

14. DEFINE Classifying stock items according to criticality with corresponding values C US $ 1.260-M 3,693 line items MMU Inventory Costs: Classifications Critical To ADB Operations: NC US $ 344,000.00 2,295 line items Inv. Cost:: US # 1.604 M No. of Classifications: 28 No. Line Items: 5,988 No. Items-Pcs.: 240,433 Rev. Cost:: US # 1.26 M No. of Classifications: 9 No. Line Items: 3,693 No. Items-Pcs.: 110,804 Refer appendix _ , page __ Classifications NOT Critical to ADB Operations: Fig: 2 : This chart shows the critical and non-critical component of the 28 Engineering Classifications. The C-bar to the left represents the nine (9) critical engineering classifications comprising 80% of the entire cost of the engineering stock items worth US 1.260 M. Balances: Rev. Cost:: US # 0.344 M No. of Classifications: 19 No. Line Items: 2,295 No. Items-Pcs.: 129,629

15. MEASURE MMU Inventory Cost C US $ 1.260-M NC US $ 344,000.00 Fig: 2 : This chart shows the critical and non-critical component of the 28 Engineering Classifications. The C-bar to the left represents the nine (9) critical engineering classifications comprising 80% of the entire cost of the engineering stock items worth US 1.260 M. Fig. 1 : Cost distribution of 28 Engineering Classifications amounting to US 1.604 M. Appendix 14

16. ANALYZE MMU Inventory Cost C NC Fig. 2: Pareto chart showing the critical and non-critical component of the 28 Engineering Classifications amounting to US 1.604 M. Fig. 2 : NC ; US S 344,000 Fig. 3 : NC ; US $ 773,056 TOTAL : US $ 1.177,000 NC US $ 773,056.00 C US $ 486,944.00 Fig. 3: The Pareto chart above shows the cost component of the 9 engineering classifications identified critical to ADB Operations. However, the initial count of 3,693 critical line items amounting to US $ 1.26M was, after the application of the FMEA, trimmed down to 843 line items, line items vital to ADB operations worth US $ 486,944.00. Fig. 4: The chart above represents the total cost of engineering items not critical to ADB operations. These items represents US $ 1.177M of the entire engineering stock items. Appendix 15

17. MEASURE Classifying the equipment, parts and supplies not critical to ADB operations. ANALYZE & IMPROVE PHASE MEASURE PHASE Identifying Critical Engg. Classifications: Application of FMEA for Parts, Supplies & Equip. Critical to ADB Operations: Classifications Critical To ADB Operations: Parts, Supplies & Equip. Critical to ADB Operations: MMU Inventory Costs: Rev. Cost:: US # 1.26 M No. of Classifications: 9 No. Line Items: 3,693 No. Items-Pcs.: 110,804 Refer appendix 3, page 14 Rev. Cost:: US # 486,944.00 No. of Classifications: 9 No. Line Items: 843 No. Items-Pcs.: 5,743 Inv. Cost:: US # 1.604 M No. of Classifications: 28 No. Line Items: 5,988 No. Items-Pcs.: 240,433 Total Balance of NON-CRITICAL Parts, Supplies & Equip. to ADB Operations: Classifications NOT Critical to ADB Operations: Parts, Supplies & Equip. NOT Critical to ADB Operations: Balances: Rev. Cost:: US # 0.344 M No. of Classifications: 19 No. Line Items: 2,295 No. Items-Pcs.: 129,629 Balances: Rev. Cost:: US # 773,056.00 No. of Classifications: 9 No. Line Items: 2,850 No. Items-Pcs.: 105,061 Balances: Rev. Cost:: US # 1.177 M No. of Classifications: 1 9 No. Line Items: 5,145 No. Items-Pcs.: 234,690

18. ANALYZE Recommended Actions for Non-Critical stock items

19. MEASURE Classification of non-critical stock items as of December 2005 40% 15% 1% 6% 29%

20. ANALYZE Pareto Chart of stock items US $ 166,540 : Bldg. Materials 69,960 : Hardware & Abrasive 33,236. : Paints, Sealers & Varnish 58,259 : Mech’l & Ind’l Materials 36,996 : Plumbing Equipt & Components 43,857 : Janitorial & Fac. Equipt.

21. MEASURE Classification of non-critical stock items

22. MEASURE Classification of non-critical stock items

23. Classification of non-critical stock items MEASURE

24. IMPROVE FISH BONE DIAGRAM Prioritized list of X’s (Item 1 & 2) ORDERING PROCEDURES PEOPLE LOCAL SOURCE (X) STORE CLERK KNOWLEDGE (X) INDENT SPARES PURPOSE (X) WRONG SPECIFICATION PROJECTS (X) Availability of Critical stock items (EXPENSE) DIRECT (X) ISSUANCE (X) NO INVENTORY LISTING For Direct Charge items PROGRAMMED OR PLANNED (N) STORE (X) CONSTRUCTION EXCESS STOCK ITEM STORAGE (X) CRITICAL SAFEKEEPING PROCESS (X) NON-CRITICAL (X) TAGGING OR MARKING (X) DIRECT CHARGE (N) : Noise BUDGET POLICIES (Storage & Receiving) HANDLING (Material) BUDGET (X) : Control Focus on 11 X’s to improve the inventory lists of stock items not critical to ADB operations. Appendix # 17

25. ANALYZE Classifying the equipment, parts and supplies not critical to ADB operations. ANALYZE & IMPROVE PHASE Identifying Critical Engg. Classifications: Application of FMEA for Parts, Supplies & Equip. Critical to ADB Operations: MEASURE PHASE Classifications Critical To ADB Operations: Parts, Supplies & Equip. Critical to ADB Operations: MMU Inventory Costs: Rev. Cost:: US # 1.26 M No. of Classifications: 9 No. Line Items: 3,693 No. Items-Pcs.: 110,804 Refer appendix 3, page 14 Rev. Cost:: US # 486,944.00 No. of Classifications: 9 No. Line Items: 843 No. Items-Pcs.: 5,743 Inv. Cost: US $ 1.604 M No. of Classifications: 28 No. of Line Items: 5,988 No. of Items (pcs.) : 240,433 Total Balance of NON-CRITICAL Parts, Supplies & Equip. to ADB Operations: Parts, Supplies & Equip. NOT Critical to ADB Operations: Classifications NOT Critical to ADB Operations: Balances: Rev. Cost:: US # 0.344 M No. of Classifications: 19 No. Line Items: 2,295 No. Items-Pcs.: 129,629 Balances: Rev. Cost:: US # 773,056.00 No. of Classifications: 9 No. Line Items: 2,850 No. Items-Pcs.: 105,061 Balances: Rev. Cost:: US # 1.177 M No. of Classifications: 1 9 No. Line Items: 5,145 No. Items-Pcs.: 234,690 DISPOSABLE: Rev. Cost:: US # M No. of Classifications: 19 No. Line Items: No. Items-Pcs.: STOP ORDERING: Rev. Cost:: US # M No. of Classifications: 19 No. Line Items: No. Items-Pcs.: DELETE FROM LISTS: Rev. Cost:: US # M No. of Classifications: 19 No. Line Items: No. Items-Pcs.: RETAIN / USABLE: Rev. Cost:: US # M No. of Classifications: 19 No. Line Items: No. Items-Pcs.: CONTRACT AGREEMENT Rev. Cost:: US # M No. of Classifications: 19 No. Line Items: No. Items-Pcs.:

26. REQUESTS FOR PURCHASES IS A CONTRIBUTING FACTOR IN THE ACCUMULATION OF HIGH LEVEL OF STOCK ITEMS. 1. Requests for purchases of regular and standard engineering equipment, parts and spares for normal and regular stock items. 2. Requests for purchases of non-regular engineering stock items.

27. IMPROVE IMPROVED PROCESS MAP :Need for regular stock items (equipment, parts and/or supplies) from the Engg. Store and stock replenishment. IMPROVED PROCESS A End Users START Need for stock item Prepare withdrawal Form/slip Prepare Purchase Requisition End-user prepares withdrawal Follow steps 4 to 8 END O A F A – F M 8 BCC CSC Etc. 2 User receives item and accomplish work End-user inspect, test & recommend acceptance 3 END Approval Review & approval by SEO & endorse to Head, OAFA-FM Solicit withdrawal approval from SEO SEO Head, OAFA-FM Solicit approval of RP by Head, OAFA-FM 1 4 OAFA-FM YES Submit to MMU for stock item issuance Check availability from Engg. Store 5 Acceptance and delivery storage 6 NO MMU-Store releases stock items Advise end –user of Delivery for inspection O A I S - P C • Additional mechanism that will control : • Approval of the request for purchase. • Advise end-user before receiving delivery • End-user inspecting delivery before acceptance • and, MMU to accepts and store delivered item • Refer to submitted list of authorized source.. Forwarded to OAIS- PC for action Request for Quote, issue PO Refer to database for authorized Source or supplier

28. IMPROVE IMPROVED PROCESS MAP :Need for stock items (equipment, parts and/or supplies) for a particular A I G Project. PROCESS B (AIG) Refer to Master catalogue before raising a RP 1 Check Master Catalogue for stock item YES End Users PROJECT START Need for stock item Prepare withdrawal Form/slip Accomplish and complete project. PROJECT ENDS O A F A - F M BCC, CSC Etc. NO Formally return excess materials to Engg. 2 Prepare Purchase Requisition End-user inspect, test & recommend acceptance 9 Approval Review & approval by SEO & endorse to Head, OAFA-FM Review and Approve withdrawal request. 3 SEO Excess materials to be formally turned over to and recorded by MMU. All deliveries are to be properly inspected & tested prior to acceptance. Head, OAFA-FM 4 Solicit approval of RP by Head, OAFA-FM Request for purchase are reviewed by SEO Before endorsement for approval. List of authorized sources identified and list endorsed to PC. OAFA-FP Receives, records and storage 11 Submit to MMU for stock item issuance. 10 8 Advise end –user of Delivery for inspection Acceptance and delivery storage MMU review and issue items O A I S - P C 5 Forwarded to OAIS- PC for action Request for Quote, issue PO 7 6 Refer to database for authorized Source or supplier

29. Solutions and Improvements IMPROVE Refer to Appendix # 10

30. IMPROVE Improvements and Benefits QUICK WINS IMPROVEMENTS COST COMPARISON SAVINGS/BENEFITS People: Inexperienced Clerk Store Management Staff training. Management sourced out Staff Salary & Benefits: Php 1.93M/annum. Compared to: Svc. Provider Contract: Php 1,86M/annum (Php 72,000 per annum) also covers savings of 1st Wave. Procurement Process: Stock information on Non-Critical Supplies Improvement to stock information, catalogue and suppliers lists Immediate access to stored stock items. Updated stock description/specifications. Updated list of suppliers/sources Time and reduced Man-hr. with cost Equivalent. Expected add’l spaces estimated to cost Php 500,000 per annum. Material Mgnt. Unit Direct issuance of items Stock item storage Guideline in safekeeping DC items stored and kept in central storage room. DC items movements are controlled and monitored. Critical stock items marked. Stock item under one control. Proper utilization of approved budget. Controlled purchases and resulted to under utilization in the amount of US $ 260,313.00 for the 1st 6-months of 2006 Under-utilization of the projected budget fr. Jan. to June 2006. Budget: Budget utilization Stock replenishment Utilization as per work plan. Replenishment needs SEO’s approval. Refer to Slide # 41 Refer to Slide # 31 Material Handling: Access to stock items Stock Classification Information via PC’s. Identified critical and non-moving stock items. Easy access to stored stock items. Identi- fied non-moving, non-usable items for disposal in the amount of US $ 60,000 Salvage value of US $ 9,000.00 (10-15% of costs). Refer to Slide # 18 Appendix # 18

31. IMPROVE 2006 OAFA-FM Budget Utilization and Savings Dear all, Ms. Alice Lim would also like to know the estimated percentage of locally sourced and indent items in the Building Maintenance Supplies and Spares account. Budget Account Approved Budget Utilization level Balance Local (%) Imported (%) Building Maintenance Supplies 417 000 145 944 ( 35%) 274 081 (65%) Building Maintenance Spares 687 500 135 993 (20%) 630 257 (80%) thanks, Francelita G. Felizardo FP Operations Assistant Asian Development Bank Tel (632) 632-4233 www.adb.org Budget Account January to June Estimates Under-utilization (1st 6-months) Building Maintenance Supplies US $ 208,500.00 US $ 52,556.00 Building Maintenance Spares US $ 343,750.00 US $ 207,750.00 T O T A L (Under-utilization): US $ 260,313.00 OAFA-FM Budget Utilization as of 11 July 2006 The figures above represents the actual budget utilization for budget accounts for Building Maintenance Supplies and Building Maintenance Spares requirements of OAFA-FM for the period January to June 2006 which are 35% and 20% or an equivalent budget underutilization of US $ 52,556.00 and US $ 207,757.00 respectively.

32. IMPROVE Reduction, Inventory Costs

33. IMPROVE Graph, Reduction of Inv. Cost. Physical Inventory conducted by MMU shows a total Cost of US $ 489,393.69. US 342,578.58 represents the Inventory Cost at 30% reduction.. US 293,636.21 represents the Inventory Cost at 40% reduction. US 244,696.85 represents the Inventory Cost at 50% reduction..

34. IMPROVE Graph, Reduction of Inv. Cost. Actual or the current Inventory Cost of Items kept in the Engg. Store after the exercise amounts to US 425,799.71 or 13% reduction from the original amount..

35. IMPROVE Process Capability Graph, Reduction of Inv. Costs Process Capability of no. of stock items in pcs. at 30% reduction. Process Capability of no. of stock items in pcs. at 40% reduction. Process Capability of no. of stock items in pcs. at 50% reduction. Process Capability of no. of stock items in pcs. at an actual reduction of 13%.

36. IMPROVE Process Capability Graph, Reduction of Inv. Cost. Process Capability of no. of stock items in pcs. at 30% reduction. Process Capability of no. of stock items in pcs. at 40% reduction. Process Capability of no. of stock items in pcs. at 50% reduction. Process Capability of no. of stock items in pcs. at an actual reduction of 13%.

37. IMPROVE Reduction, Number of Pieces

38. IMPROVE Graphs, Reduction on No. of Pcs. Physical Inventory conducted by MMU shows a total of 146,994.98 pcs. of items. A reduction of 30% of the current Inventory Level reduces stock items to 102,896.49 pcs.. A reduction of 40% of the current Inventory Level reduces stock items to 88,196 pcs. A reduction of 50% of the current Inventory Level reduces stock items to 73,497.49 pcs.

39. IMPROVE Graphs, Reduction No. of Pcs. This Pareto Chart represents 40% reduction on the current stock level to 88,167.98 pcs. from the current stock level of 146,994 pcs.

40. IMPROVE Process Capability Chart, Reduction of No. of Pcs.

41. IMPROVE Graphs, Reduction No. of Pcs.

42. IMPROVE Graphs, Reduction No. of Pcs.

43. IMPROVE Graphs, Reduction No. of Pcs.

44. IMPROVE Attribute Charts, Reduction in the Number of Pieces

45. IMPROVE Reduction, Line Items

46. IMPROVE Graph, Reduction No. of Line Items Pareto charts of the no. of line items before and after the exercise.

47. IMPROVE Graph, Reduction No. of Line Items

48. IMPROVE Graph, Reduction No. of Line Items

49. IMPROVE Attribute Charts, Reduction in the Number of Line Items

50. IMPROVE Process Capability Charts, Reduction No. of Line Items Process Capability charts before and after the exercise