Elimination of Misconduct in Manual Counting Process as an Improvement of Inventory Accuracy in A Manufacturing Company
DOI:
https://doi.org/10.15282/ijim.10.1.2021.6051Keywords:
Inventory accuracy, Misconduct, Arduino sensor network system, Counting sensor, ManufacturingAbstract
Managing inventory is crucial especially for manufacturing companies as it has a direct influence on profits of the company. In order to have an efficient inventory management, inventory accuracy need to be achieved and this can be achieved by leveraging technologies and techniques that can minimize the human error. The objective of this study is to investigate the factors affecting inventory inaccuracy in Factory 21 of ABC manufacturing company. This study reveals that the inventory inaccuracy is influenced by the order received in the factory, which is due to the human misconduct during the manual counting process of cartons on pallet. This paper proposes the deployment of Arduino sensor network system in automating the carton counting process.The findings for this study show that the automation system able to improve the inventory record accuracy in ABC manufacturing company.
References
Arduino. (2014). Arduino UNO Rev3. In Arduino (Vol. 328, pp. 1–7). https://store.arduino.cc/usa/arduino-uno-smd-rev3%0A
Atnafu, D., & Balda, A. (2018). The impact of inventory management practice on firms' competitiveness and organizational performance: Empirical evidence from micro and small enterprises in Ethiopia. Cogent Business & Management, 5(1), 1–16. https://doi.org/10.1080/23311975.2018.1503219
Buntak, K., Kovačić, M., & Mutavdžija, M. (2019). Internet of things and smart warehouses as the future of logistics. Tehnički Glasnik, 13(3), 248–253. https://doi.org/10.31803/tg-20190215200430
Carvalho, B. F., Silva, C. C. M., Silva, A. M., Buiati, F., & Timóteo, R. (2016). Evaluation of an arduino-based IoT person counter. IoTBD 2016 - Proceedings of the International Conference on Internet of Things and Big Data, IoTBD, 129–136. https://doi.org/10.5220/0005954601290136
Chuang, H. H. C., & Oliva, R. (2015). Inventory record inaccuracy: Causes and labor effects. In Journal of Operations Management (Vols. 39–40, pp. 63–78). https://doi.org/10.1016/j.jom.2015.07.006
Dai, H., Li, J., Yan, N., & Zhou, W. (2016). Bullwhip effect and supply chain costs with low-and high-quality information on inventory shrinkage. European Journal of Operational Research, 250(2), 457–469.
Department of Statistics Malaysia. (2020). Monthly Manufacturing Statistics Malaysia, September 2020. In Department of Statistics Malaysia Official Portal. https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=90&bul_id=cmhRVFBDelZYWiszaklaS0Nkcll1QT09&menu_id=SjgwNXdiM0JlT3Q2TDBlWXdKdUVldz09
Drakaki, M., & Tzionas, P. (2019). Investigating the impact of inventory inaccuracy on the bullwhip effect in RFID-enabled supply chains using colored petri nets. Journal of Modelling in Management, 14(2), 360–384. https://doi.org/10.1108/JM2-08-2017-0081
Hachem, W. E. L., Harik, R., & Khoury, J. (2016). Error Generation, Inventory Record Inaccuracy (IRI) and Effects on Performance: A Dynamic Investigation. Product Lifecycle Management for Digital Transformation of Industries. IFIP Advances in Information and Communication Technology, 642–651.
Karim, N. A., Nawawi, A., & Salin, A. S. A. P. (2018). Inventory Control Weaknesses - A Case Study of Lubricant Manufacturing Company. Journal of Financial Crime, 34(1), 1–5.
Mohamad, S. J. A. N. bin S., Suraidi, N. N., Rahman, N. A. A., & Suhaimi, R. D. S. R. (2016). A Study on Relationship between Inventory Management and Company Performance: A Case Study of Textile Chain Store. Journal of Advanced Management Science, 4(4), 299–304. https://doi.org/10.12720/joams.4.4.299-304
Okyay, H. K. (2014). Detailed Inventory Record Inaccuracy Analysis.
Prempeh, K. B., & Amankona, G. P. (2020). Does Working Capital Management Affect Profitability of Ghanaian Manufacturing Firms ? Zagreb International Review of Economics & Business, 23(1), 1–18. https://doi.org/10.2478/zireb-2020-0001
Qin, W., Zhong, R. Y., Dai, H. Y., & Zhuang, Z. L. (2017). An assessment model for RFID impacts on prevention and visibility of inventory inaccuracy presence. Advanced Engineering Informatics, 34(September), 70–79. https://doi.org/10.1016/j.aei.2017.09.006
Rekik, Y., Syntetos, A. A., & Glock, C. H. (2019). Inventory Inaccuracy in Retailing : Does it Matter ? https://www.cardiff.ac.uk/__data/assets/pdf_file/0003/1729236/84486-ECR-Inventory-Inaccuracy-Report-v12.pdf
Reuters. (2020). Malaysia to shut some Top Glove factories in phases amid COVID-19 outbreak. In Channel News Asia. https://www.channelnewsasia.com/news/business/covid-19-malaysia-top-glove-close-factories-in-stages-outbreak-13621788
Saxena, A., Taterh, S., & Saxena, N. (2020). Comparative Study of the Ultrasonic and Infrared Person Counter. Advances in Intelligent Systems and Computing, 1154, 1081–1092. https://doi.org/10.1007/978-981-15-4032-5_96
Sowmya, T. K., Agadi, S. V, Saraswathi, K. G., Nirvani, P. B., & Prajwal, S. (2018). Implementation of IoT Based Smart Warehouse Monitoring System. 6(15), 1–4. http://oatd.org/oatd/record?record=%22handle:10393/37756%22
Sunday, O., & Joseph, E. E. (2017). Inventory Management and SMEs Profitability . A Study of Furniture Manufacturing , Wholesale and Eatery Industry in Delta State , Nigeria. Journal of Finance and Accounting, 5(3), 75–79. https://doi.org/10.12691/jfa-5-3-1
Surendran, S. (2020, December). Covid-19 cuts Top Glove both ways. The Edge Malaysia.
Talavera, H. E., Banks, J., Smith, N. R., & Cárdenas-Barrón, L. E. (2015). Enhancing the management of shared inventory in the steel industry using RFID: an alternative to bar codes. International Journal of Machine Learning and Cybernetics, 6(5), 733–745. https://doi.org/10.1007/s13042-015-0406-x
Tejesh, B. S. S., & Neeraja, S. (2018). Warehouse inventory management system using IoT and open source framework. Alexandria Engineering Journal, 57(4), 3817–3823. https://doi.org/10.1016/j.aej.2018.02.003
The Edge Markets. (2020). Malaysian manufacturing sector pessimistic in projections on business prospects for rest of 2020 — FMM. Malaysia.
Top Glove Corporation Berhad. (2020). Top Glove Corporation Berhad | Corporate Profile. In Top Glove Corporation Berhad. https://www.topglove.com/corporate-profile/
Velasco, J., Alberto, L., Ambatali, H. D., Canilang, M., Daria, V., Liwanag, J. B., & Madrigal, G. A. (2019). Internet of things-based (IoT) inventory monitoring refrigerator using arduino sensor network. Indonesian Journal of Electrical Engineering and Computer Science, 18(1), 508–515. https://doi.org/10.11591/ijeecs.v18.i1.pp508-515
Wan Husain, W. A. F. (2020). Insights: the Conceptual Framework for Buiding the World Class Good Governance Ethics. Journal of Governance and Integrity, 4(1), 1–5. https://doi.org/10.15282/jgi.4.1.2020.5606
Yerpude, S., & Singhal, T. K. (2018). SMART Warehouse with Internet of Things supported Inventory Management System. International Journal of Pure and Applied Mathematics, 118(24), 1–15.
Atnafu, D., & Balda, A. (2018). The impact of inventory management practice on firms' competitiveness and organizational performance: Empirical evidence from micro and small enterprises in Ethiopia. Cogent Business & Management, 5(1), 1–16. https://doi.org/10.1080/23311975.2018.1503219
Buntak, K., Kovačić, M., & Mutavdžija, M. (2019). Internet of things and smart warehouses as the future of logistics. Tehnički Glasnik, 13(3), 248–253. https://doi.org/10.31803/tg-20190215200430
Carvalho, B. F., Silva, C. C. M., Silva, A. M., Buiati, F., & Timóteo, R. (2016). Evaluation of an arduino-based IoT person counter. IoTBD 2016 - Proceedings of the International Conference on Internet of Things and Big Data, IoTBD, 129–136. https://doi.org/10.5220/0005954601290136
Chuang, H. H. C., & Oliva, R. (2015). Inventory record inaccuracy: Causes and labor effects. In Journal of Operations Management (Vols. 39–40, pp. 63–78). https://doi.org/10.1016/j.jom.2015.07.006
Dai, H., Li, J., Yan, N., & Zhou, W. (2016). Bullwhip effect and supply chain costs with low-and high-quality information on inventory shrinkage. European Journal of Operational Research, 250(2), 457–469.
Department of Statistics Malaysia. (2020). Monthly Manufacturing Statistics Malaysia, September 2020. In Department of Statistics Malaysia Official Portal. https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=90&bul_id=cmhRVFBDelZYWiszaklaS0Nkcll1QT09&menu_id=SjgwNXdiM0JlT3Q2TDBlWXdKdUVldz09
Drakaki, M., & Tzionas, P. (2019). Investigating the impact of inventory inaccuracy on the bullwhip effect in RFID-enabled supply chains using colored petri nets. Journal of Modelling in Management, 14(2), 360–384. https://doi.org/10.1108/JM2-08-2017-0081
Hachem, W. E. L., Harik, R., & Khoury, J. (2016). Error Generation, Inventory Record Inaccuracy (IRI) and Effects on Performance: A Dynamic Investigation. Product Lifecycle Management for Digital Transformation of Industries. IFIP Advances in Information and Communication Technology, 642–651.
Karim, N. A., Nawawi, A., & Salin, A. S. A. P. (2018). Inventory Control Weaknesses - A Case Study of Lubricant Manufacturing Company. Journal of Financial Crime, 34(1), 1–5.
Mohamad, S. J. A. N. bin S., Suraidi, N. N., Rahman, N. A. A., & Suhaimi, R. D. S. R. (2016). A Study on Relationship between Inventory Management and Company Performance: A Case Study of Textile Chain Store. Journal of Advanced Management Science, 4(4), 299–304. https://doi.org/10.12720/joams.4.4.299-304
Okyay, H. K. (2014). Detailed Inventory Record Inaccuracy Analysis.
Prempeh, K. B., & Amankona, G. P. (2020). Does Working Capital Management Affect Profitability of Ghanaian Manufacturing Firms ? Zagreb International Review of Economics & Business, 23(1), 1–18. https://doi.org/10.2478/zireb-2020-0001
Qin, W., Zhong, R. Y., Dai, H. Y., & Zhuang, Z. L. (2017). An assessment model for RFID impacts on prevention and visibility of inventory inaccuracy presence. Advanced Engineering Informatics, 34(September), 70–79. https://doi.org/10.1016/j.aei.2017.09.006
Rekik, Y., Syntetos, A. A., & Glock, C. H. (2019). Inventory Inaccuracy in Retailing : Does it Matter ? https://www.cardiff.ac.uk/__data/assets/pdf_file/0003/1729236/84486-ECR-Inventory-Inaccuracy-Report-v12.pdf
Reuters. (2020). Malaysia to shut some Top Glove factories in phases amid COVID-19 outbreak. In Channel News Asia. https://www.channelnewsasia.com/news/business/covid-19-malaysia-top-glove-close-factories-in-stages-outbreak-13621788
Saxena, A., Taterh, S., & Saxena, N. (2020). Comparative Study of the Ultrasonic and Infrared Person Counter. Advances in Intelligent Systems and Computing, 1154, 1081–1092. https://doi.org/10.1007/978-981-15-4032-5_96
Sowmya, T. K., Agadi, S. V, Saraswathi, K. G., Nirvani, P. B., & Prajwal, S. (2018). Implementation of IoT Based Smart Warehouse Monitoring System. 6(15), 1–4. http://oatd.org/oatd/record?record=%22handle:10393/37756%22
Sunday, O., & Joseph, E. E. (2017). Inventory Management and SMEs Profitability . A Study of Furniture Manufacturing , Wholesale and Eatery Industry in Delta State , Nigeria. Journal of Finance and Accounting, 5(3), 75–79. https://doi.org/10.12691/jfa-5-3-1
Surendran, S. (2020, December). Covid-19 cuts Top Glove both ways. The Edge Malaysia.
Talavera, H. E., Banks, J., Smith, N. R., & Cárdenas-Barrón, L. E. (2015). Enhancing the management of shared inventory in the steel industry using RFID: an alternative to bar codes. International Journal of Machine Learning and Cybernetics, 6(5), 733–745. https://doi.org/10.1007/s13042-015-0406-x
Tejesh, B. S. S., & Neeraja, S. (2018). Warehouse inventory management system using IoT and open source framework. Alexandria Engineering Journal, 57(4), 3817–3823. https://doi.org/10.1016/j.aej.2018.02.003
The Edge Markets. (2020). Malaysian manufacturing sector pessimistic in projections on business prospects for rest of 2020 — FMM. Malaysia.
Top Glove Corporation Berhad. (2020). Top Glove Corporation Berhad | Corporate Profile. In Top Glove Corporation Berhad. https://www.topglove.com/corporate-profile/
Velasco, J., Alberto, L., Ambatali, H. D., Canilang, M., Daria, V., Liwanag, J. B., & Madrigal, G. A. (2019). Internet of things-based (IoT) inventory monitoring refrigerator using arduino sensor network. Indonesian Journal of Electrical Engineering and Computer Science, 18(1), 508–515. https://doi.org/10.11591/ijeecs.v18.i1.pp508-515
Wan Husain, W. A. F. (2020). Insights: the Conceptual Framework for Buiding the World Class Good Governance Ethics. Journal of Governance and Integrity, 4(1), 1–5. https://doi.org/10.15282/jgi.4.1.2020.5606
Yerpude, S., & Singhal, T. K. (2018). SMART Warehouse with Internet of Things supported Inventory Management System. International Journal of Pure and Applied Mathematics, 118(24), 1–15.
Downloads
Published
2021-03-05
How to Cite
Mohd Mahzan, I. H. Q. D., & Lee, K. L. (2021). Elimination of Misconduct in Manual Counting Process as an Improvement of Inventory Accuracy in A Manufacturing Company. International Journal of Industrial Management, 10(1), 140–150. https://doi.org/10.15282/ijim.10.1.2021.6051
Issue
Section
Vol 10 2021
