International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 11 Issue: 10 | Oct 2024
p-ISSN: 2395-0072
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OPTIMIZING INVENTORY MANAGEMENT IN POWER PLANT OPERATIONS: A COMPREHENSIVE ANALYSIS OF SELECTIVE CONTROL POLICIES Monica Mehrotra1, S.C. Sehgal2 1 Professor and Director, BBD Engineering College, Lucknow, India. Email: mehrotra.monica@gmail.com 2 Materials Management Consultant, Ex-NTPC, Consultant-JSW Energy, APGENCO, APIL and STEAG Energy,
Greater Noida, India. Email: scsehgal44@gmail.com ---------------------------------------------------------------------***---------------------------------------------------------------------
Abstract - Purpose: This study critically evaluates the
This study focuses on exploring these selective inventory control techniques within the context of power plant operations, which require thousands of spares, making inventory control particularly complex [3]. In power plants, managing a large size store can be a challenging endeavor due to the diverse characteristics of its items like:
application of selective inventory control techniques within power plant operations. It focuses on optimizing inventory levels, reducing operational costs, and ensuring the continuous availability of essential spares. By employing well-established techniques such as ABC, VED, XYZ, FSN, HML, and SDE, the study aims to provide power plant operators with practical insights for improving inventory management and enhancing overall operational efficiency.
1. Varying annual consumption values, ranging from significant to negligible. 2. Diverse movement frequencies, with some items experiencing high turnover and others remaining stagnant for years together.
Methodology: Each technique is analyzed based on factors like consumption value, criticality, movement dynamics, inventory value, and procurement challenges, with a focus on their applicability to power plants.
3. Varying sourcing origins, including imported and domestically available items.
Results: The findings demonstrate how power utilities can apply these techniques to prioritize high-value and critical items, reduce carrying costs, and avoid stockouts. Practical recommendations for tailoring these methods to power plant needs are provided.
4. Different levels of operational importance, from vital components crucial for uninterrupted operations of organization to desirable items with minimal impact on operations, except some small inconvenience or criticism (item like tumbler glass or a stationery item).
Key Words: ABC, FSN, Inventory management, Selective control, VED, XYZ, Power plant operations.
5. Varying unit rates, including items like a small bolt or nut to a rotor, which may be very expensive.
1.INTRODUCTION
Given these challenges, implementing selective control techniques becomes vital to maintain an efficient inventory system. Each technique, such as ABC, VED, XYZ, FSN, HML, and SDE, offers a unique method for categorizing and controlling inventory based on different factors like consumption value, criticality, and procurement challenges. However, power plant operations require a tailored approach to applying these techniques effectively.
Inventory management stands as a cornerstone of operational efficiency and profitability in businesses across various sectors, none more critical than in power utilities where thousands of spares dictate operational continuity/efficiency. It is crucial for business success, as it directly impacts customer satisfaction, operational expenditures, and overall financial performance [1]. One significant aspect of effective inventory management is the application of selective inventory control techniques. These techniques allow businesses to optimize their inventory levels, reduce carrying costs, and guarantee timely availability of the required products. If selective control techniques are not adopted, a situation may arise where the control cost exceeds the value of any benefit arising out of control action. Moreover, in the absence of selective control techniques, the control efforts can become diffused and desultory that its very purpose is lost [2].
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This study aims to not only explore these techniques but also critically evaluate their applicability to power plant operations. Through this evaluation, we propose specific, actionable recommendations for power plant operators to enhance their inventory management practices. By applying these established techniques, power plants can optimize inventory levels, reduce operational costs, and improve the availability of critical spare parts, ultimately leading to greater operational efficiency and reliability.
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