INVESTIGATING EFFICIENCY OF MATERIALS MANAGEMENT AT ORIGINAL EQUIPMENT MANUFACTURER (OEM)

– Original Equipment Manufacturer (OEM) businesses always facing a challenge in managing the material effectively and efficiently. The


INTRODUCTION LITERATURE REVIEW
Materials management is an integrative strategy for optimizing material operations and total material cost [7]. Materials management encompasses all the aspects of the materials i.e., material costs, material supply and material utilization. Materials management is concerned with material planning and materials control activities [11]. It is an important aspect of the factory and industrial system that includes a complete variety of duties such as material handling, material procurement, assembly line management, storage, and material transport. Material management and control are made up of several small parts that come together to make the organization more efficient and financially viable [12]. Material management consist of a series of processes that need to be integrated, coordinated, and synchronized well to ensure that material is available at their point of use when needed. The material management process begins from need generated from site followed by this information conveyed to store department and material is ordered in the store, the indent is generated. Usually, vender selection is to be carried out for the least value and best items. Materials are received at store departments and inspection is carried out [13].
Material handling is the flow of elements that allows for their movement and placement. The fact that materials are expensive and include important decisions highlights the need for effective management. Proper storage protection is sometimes overlooked, due to poor material quality or degradation of the material. As a result, it is also indicated that material storage loading and unloading should not be handled in the rain. It is also recommended that the storage area be closed, clean, and dry, with sufficient air circulation, and that specific product be stacked on pallets at no more than a particular safe height to prevent dampness, and so on [14]. Material handling equipment selection is very important because it may improve the production process, raise worker utilization, productivity, and system flexibility. Material handling equipment selection plays a critical role in the design of a material handling system in order to improve the production process, offer optimal personnel utilization, increase productivity, and improve the system. Inventory control increases profitability by lowering expenses related to material storage and handling. Inventory control is a method of making materials of the appropriate quality and quantity available as and when they are required, considering the economy of shortage, ordering cost, purchase price, and working capital [15]. Inventory control determines the quantity of materials held in stock. It also enables materials managers to carry out accurate and efficient manufacturing organisation operations by decoupling individual segments of the whole operation, which includes the process of assessing goods into the store house and distributing stock. In comparison, a lack of materials can cause a disruption in product sales, customer relations degrade, and equipment and machinery are underused. As a result, a firm can only achieve significant cost savings by applying a sensible inventory control system.
Excessive materials on storage items would cause issues for the management. Storage of resources can raise the cost of manufacturing, raising the project's final cost. Furthermore, if the storage facility does not have enough space to hold all of the materials, the management may be forced to hire other storage facilities, which will add to the hassle and cost. 40% of the time spent on storage is due to poor management, a shortage of supplies when needed, poor material identification, and insufficient storage. An inadequate materials management strategy can have a negative impact on cost, quality, and timeliness, all of which can influence project completion [15].

METHODOLOGY
Research methodology starts with identifying the research problem and understand Material Management at Original Equipment Manufacturer (OEM). Then proceed to data collection by two main methods which are observation and interview the company by online platform. Based on the data collected, create the IDEF0 development to represent the flow of material management at Original Equipment Manufacturer company. Next, proceed to the software development, design and coding the material management system data.

Observation
For observation, the OEM company is separated into three phases: prepare resources, produce product, and ship order. The OEM company will be given according to the batch and age of the product. Qualitative techniques contribute by focusing on 'natural' settings that allow for the comprehension of social processes and phenomena, whereas observational data collection methods bridge research paradigms. We may be able to assist others in comprehending what we do and how it evolves in response to events and through time, which is especially important when individuals struggle to define their own practise. We focus on the potentially problematic areas of sampling, permission, and ethics, data collection and recording, data administration, and analysis in observational research.

Interview
Interviews are used to get data from a small group of respondents on a wide range of topics. Structured or unstructured interviews can be used. Structured interviews are compared to questionnaires in that they ask the same questions in the same format for each subject and allow for multiple choice responses. There is no fixed set of possible responses for unstructured interviews; questions can vary by subject and can be affected by answers provided to previous questions. In this research, interviews were held with a Original Equipment Manufacturer company. This interview intends to obtain information on establishing material management at OEM, material management issues, and how they avoid or counter inefficiency in their company's material management system. The flow process of material management at OEM is the focus of this technique. As a response, determining the issue of material overstock and understock is also crucial information in this interview. One factor that contributes to understocking is the poor material planning, material estimating problems, storage problem and etc.

IDEF0 Approach
IDEF0 is used as a functional model to show the flow of the material management system in Original Equipment Manufacturer (OEM) as shown in Figure 1. The IDEF0 functional model has five elements as in Table 1: The activity (or process) is represented by boxes; inputs are represented by arrows flowing into the left hand side of an activity box; outputs are represented by arrows flowing out the right hand side of an activity box; constraints or controls on the activities are represented by arrows flowing into the top portion of the box; and the mechanisms that carry out the activity are represented by arrows flowing into the bottom of the activity box. ICOMs are also defined as inputs, control, output, and mechanism arrows.  Microsoft excel macro is used to generate a material management system data for OEM company. A macro in Microsoft Excel is an operation or group of actions that users may run as many times as they want. Users record their mouse clicks and keystrokes when they construct a macro as shown in Figure 2. They may edit a macro after they've created it to make minor changes to how it runs as in Figure 3. They can also generate a report for their accounting manager once a month. Users wish to highlight the names of clients with previous accounts in red and use bold formatting. They can write and execute a macro to quickly apply these formatting changes to the cells they selected.

VBA USER FORM
A User Form is a customised dialogue box that makes entering user data more manageable and user-friendly. The User Forms class is a collection of things that represent each loaded User Form in an application. There is a Count property, an Item method, and an Add method in the User Forms collection. The element count of the collection is indicated by Count; Item (the default member) identifies a single collection member; and Add adds a new User Form element to the collection

Analysis System Characteristic of Material Management
Material management is an important aspect of OEM manufacture's operation because the most of costs in production are related to materials, which is why a manufacturing business should have efficient material management in place. In basic terms, materials management refers to the proper exploitation and management of materials entering the production unit in the form of raw materials, with the goal of minimizing waste and maximizing material utilization by the organization. Some of the key system characteristics of material management are (1) material management leads to uninterrupted flow of materials; (2) material management reduce material waste; and (3) material management improved budget accuracy and forecasting.
The material management should ensure an uninterrupted flow of raw materials so that production in the company does not stop due to a lack of materials. There are many instances where a company has a large order book but is unable to complete the orders on time due to production bottlenecks, resulting in a loss of business as well as the company's credibility. The flow of materials should never cease flowing since it would result in a halt in production, which would be bad for the firm in the long run.
Material wastage is common due to a variety of factors such as poor material handling, substandard material, lack of knowledge about material storage, and so on, which results in significant losses for the company during the production stage. This is where material management can help by ensuring that there is minimal wastage and maximum utilization of the company's resources.
In the case of materials management, the material manager's responsibility does not end with placing orders; rather, it continues until the finished product is sold to the consumer. As a result, aspects such as transportation of raw materials from supplier to company and from company to consumer are only part of material management; in addition, proper handling of materials is also the material manager's responsibility, making the entire material management process effectively.  Figure 4 shows an overview of the whole process of Material Management using the A0 diagram. This diagram was used to develop a model to display general information with inputs, controls, mechanisms, and outputs, where the input will move through the use of the control and mechanism to produce output. The A0 diagram shows the structure created by IDEF0, which includes three parent diagrams engaged in OEM flow managementand each parent diagram is detailed by child diagrams in nodes A1, A2, and A3. Thus, all of the elements required for each activity, as well as the interrelationships between activities. journal.ump.edu.my/jmmst ◄ In order to produce the acceptance customer order from the work order. First of all, the work order will go through from check resources, check inventory, generate production schedule and production plan to issue Job Card to prepare the parts according the customer requirements. For check resources, the admin staff will check the parts availability and do the data arrangement and the data will record in material record. After that, the next process will be take order of the parts. Secondly, after take order process is done, the inventory management will check inventory in term of inventory record and measure quantity of the parts before do the process planning. Thirdly, The design engineer will generate production schedule and production plan according to the customer requirement, work schedule and then do the production layout. Lastly, the admin staff will create the job card to ensure the stock entry to manufacture and then will proceed to the acceptance customer order.

Flow of Material Management
The first important phase in the produce product is setup machine according to the requirement machine and production line system. The setup machine including calibration and process parameter after that material preparation will be final step in the setup machine before machine ready to work. Secondly, the assemble parts by production operator according the machines and facilities resources according to the standard operation procedure, SOP. Then after the finished goods parts are produced, the quality control staff will play the role to do the inspection of the parts and then they will record and do the part complete status then the after the completed parts are done, the last process in the produce product is storing the final product by packaging operator, before that the packaging staff will do the packaging process of the finished goods and then will do the warehouse record before proceed to the final product shipment process.
The flow of ship order process starts from arrange the delivery from sales department staff and also arrange the load trucks for transportation. The sales department staff also will generate the purchase order to record the order system. Then the shipping process and deliver order can be proceeded. The sales department staff also will give the tracking order to the customer to ensure them track their order easily. After product delivered, the finance department will obtain customer sign-off and approve the invoice then the ordered finally completed.

MATERIAL MANAGEMENT SYSTEM
Material Management System created with Excel Macro VBA, which is enough for the system to remember the stock of materials or parts. As a result, the company can keep the material in storage. As a result, this platform might be used to assist the company in updating stock levels in the departments, including warehouse and production. As a result, analysing a system employing this platform is a great option. For this Macro Excel, we must first construct three userforms with the names calendar, form search product, and form update product. Figure 5 shows a UserForm for a Material Management System created with Excel Macro VBA, which is enough for the system to remember the stock of materials or parts. As a result, the company can keep the material in storage. As a result, this platform might be used to assist the company in updating stock levels in the departments, including warehouse and production. As a result, analysing a system employing this platform is a great option. For this Macro Excel, we must first construct three userforms with the names calendar, form search product, and form update product. As shown in Figure 6, we will use the calendar userform as a platform to select the stock in date. Users can perform two types of images in this userform to signify the left and right arrows for changing the date's year. In addition, two combo boxes are utilized to pick the month and year. We just utilize a button to choose a date and have the date display in the Excel sheet.  Figure 7 shows the Stock_In userform. The function of this userform is to record the stock in materials. The function of the product textbox to help users key in the classification of the products either automotive, electric and electronic or telecommunication product. Then for the product_name, the user can fill the type of a product for example blender, electronic button and etc. Next, the part_name textbox function is to enter the part of the product_name for example top cover part for blender. Furthermore, the part_code represent the type of material that use to manufacture the product_name. Later, the purchase_price indicate the price of the part_code per kilogram. Finally, the quantity represents the amount of part_code that has been purchase. After key in all the data requirements, the users can save the data or transfer the data to the Microsoft excel for documentation or data record.  Figure 8 shown economic order quantity (EOQ) Userform is the ideal order quantity a company should purchase to minimize inventory costs such as demands, holding costs and order costs. The user will enter the value of demands, holding cost and order cost and the Userform will calculate automatically the optimal EOQ and the total inventory cost per unit.

CONCLUSION
Material Management System especially in OEM industry as well as the main purpose of efficiency the whole material management system is controlling the product and service to improve the performance and competitiveness to meet customer's demand. Based on the current issue in the Company A where two materials management problems: stock-out and overstock occur frequently. It is good to have a high stock of part since the low risk of shortages can avoid the ran out of stock but it will impact the quality of the material management and cause obsolete stock. Furthermore, it also disturbing the production and increase the storage cost as the more stocks in hand; the more space is needed. Thus, manufacturing companies can implement new strategies to increase the material efficiency from the risk opportunities of stock control as preparations to overcome issues and challenges that might be happened in company A's production.