The paper discusses a project developed during my internship at SM Cyclo Italy Srl (SM Cyclo), part of Sumitomo Drive Technologies, focused on optimizing production processes by transitioning from a Make-to-Order (MTO) to an Assemble-to-Order (ATO) system for a specific product category. This strategic shift aimed to enhance operational efficiency, reduce lead times, and improve resource and inventory management to better respond to market demands and increase competitiveness. In the competitive environment of Sumitomo Drive Technologies, a leading manufacturer of servo gearboxes, efficiency and the ability to meet market needs quickly are essential. SM Cyclo recognized the need to optimize its assembly processes to maintain customer satisfaction, reduce costs, and increase flexibility. The main goal was to shift from the MTO system, which requires starting a new production cycle for each order, to the ATO system, where products are assembled from stocked components. This transition significantly reduces lead times and boosts overall efficiency. The project also focused on improving inventory management and reducing delivery times. Efficient inventory management ensures component availability, avoids delays, and cuts costs, while the ATO system allows for faster deliveries, increasing customer satisfaction and business capacity. Optimizing warehouse resources further strengthens the company's competitive position. The paper highlights the long-term advantages of the ATO transition, not only in immediate efficiency gains but also in preparing SM Cyclo for future challenges. Adopting an ATO system, combined with a culture of continuous improvement, ensures the company can adapt and innovate in a dynamic market, fostering long-term success. Despite its success, the project faced challenges, including adapting the ATO system to product-specific needs and managing organizational change. Balancing standardization with product customization was complex, and extensive training and communication were necessary to ensure employee alignment. Close collaboration with SM Cyclo staff and the use of methodologies such as A3, Lean, and Kaizen principles were essential to overcome these challenges and integrate the new procedures effectively. The project has already produced positive results, and the long-term benefits of the ATO system promise greater scalability and adaptability. Extending the system to other products and processes, and applying inventory management insights to broader logistics, will further enhance overall efficiency and competitiveness. Key-words: MTO, ATO, Operational efficiency, Inventory management, Lead times, Lean methodology, Customer satisfaction, Competitiveness.
Il documento descrive un progetto sviluppato durante il mio tirocinio presso SM Cyclo Italy Srl (SM Cyclo), parte di Sumitomo Drive Technologies, che ha riguardato l'ottimizzazione dei processi produttivi mediante la transizione da un sistema Make-to-Order (MTO) a un sistema Assemble-to-Order (ATO) per una specifica categoria di prodotti. Questo cambiamento strategico mirava a migliorare l'efficienza operativa, ridurre i tempi di consegna e ottimizzare la gestione delle risorse e dell'inventario, rispondendo meglio alle richieste del mercato e rafforzando la competitività aziendale. In un mercato altamente competitivo, SM Cyclo ha riconosciuto l'importanza di aumentare la flessibilità produttiva per soddisfare le esigenze dei clienti, ridurre i costi e migliorare l'efficienza complessiva. Il passaggio dal sistema MTO, che richiede l'avvio di un nuovo ciclo produttivo per ogni ordine, al sistema ATO, in cui i prodotti sono assemblati da componenti già in magazzino, ha permesso di ridurre notevolmente i tempi di consegna e aumentare la capacità produttiva. Il progetto ha anche migliorato la gestione dell'inventario, garantendo la disponibilità costante dei componenti necessari, riducendo ritardi e costi, e permettendo consegne più rapide, con un impatto positivo sulla soddisfazione dei clienti e sulla competitività. L'ottimizzazione delle risorse di magazzino ha contribuito a migliorare l'efficienza aziendale e a liberare risorse finanziarie. Il documento evidenzia come la transizione all'ATO non solo abbia migliorato l'efficienza immediata, ma abbia preparato SM Cyclo a sfide future. L'integrazione di una cultura del miglioramento continuo e dell'innovazione permette all'azienda di adattarsi con maggiore agilità alle dinamiche di mercato. Le principali difficoltà affrontate durante il progetto sono state l'adattamento del sistema ATO alle specificità dei prodotti e la gestione del cambiamento organizzativo. Per superare queste sfide, sono stati fondamentali la formazione del personale, una comunicazione efficace e l'uso di metodologie come A3, Lean e Kaizen, che hanno facilitato l'implementazione delle nuove procedure. Infine, il progetto ha già portato risultati concreti, con prospettive di ulteriori benefici a lungo termine. L'estensione del sistema ATO ad altri prodotti e processi, insieme all'applicazione delle competenze acquisite nella gestione dell'inventario a una logistica più ampia, offrirà ulteriori opportunità di miglioramento dell'efficienza e della competitività.
Stock management optimization project: analysis of the cases of delays and improvement strategies in the supply chain of SM Cyclo Italy Srl
Petruzzo, Antonio
2023/2024
Abstract
The paper discusses a project developed during my internship at SM Cyclo Italy Srl (SM Cyclo), part of Sumitomo Drive Technologies, focused on optimizing production processes by transitioning from a Make-to-Order (MTO) to an Assemble-to-Order (ATO) system for a specific product category. This strategic shift aimed to enhance operational efficiency, reduce lead times, and improve resource and inventory management to better respond to market demands and increase competitiveness. In the competitive environment of Sumitomo Drive Technologies, a leading manufacturer of servo gearboxes, efficiency and the ability to meet market needs quickly are essential. SM Cyclo recognized the need to optimize its assembly processes to maintain customer satisfaction, reduce costs, and increase flexibility. The main goal was to shift from the MTO system, which requires starting a new production cycle for each order, to the ATO system, where products are assembled from stocked components. This transition significantly reduces lead times and boosts overall efficiency. The project also focused on improving inventory management and reducing delivery times. Efficient inventory management ensures component availability, avoids delays, and cuts costs, while the ATO system allows for faster deliveries, increasing customer satisfaction and business capacity. Optimizing warehouse resources further strengthens the company's competitive position. The paper highlights the long-term advantages of the ATO transition, not only in immediate efficiency gains but also in preparing SM Cyclo for future challenges. Adopting an ATO system, combined with a culture of continuous improvement, ensures the company can adapt and innovate in a dynamic market, fostering long-term success. Despite its success, the project faced challenges, including adapting the ATO system to product-specific needs and managing organizational change. Balancing standardization with product customization was complex, and extensive training and communication were necessary to ensure employee alignment. Close collaboration with SM Cyclo staff and the use of methodologies such as A3, Lean, and Kaizen principles were essential to overcome these challenges and integrate the new procedures effectively. The project has already produced positive results, and the long-term benefits of the ATO system promise greater scalability and adaptability. Extending the system to other products and processes, and applying inventory management insights to broader logistics, will further enhance overall efficiency and competitiveness. Key-words: MTO, ATO, Operational efficiency, Inventory management, Lead times, Lean methodology, Customer satisfaction, Competitiveness.File | Dimensione | Formato | |
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https://hdl.handle.net/10589/227749