Guidelines for Improving Productivity, Inventory, Turnover Rate, and Level of Defects in the Plastic Industry


The purposes of this study are to study the current situation, opportunity, and obstacle in plastic industry, to create a model for improving the efficiency, reducing level of inventory, turnover, and level of defect. This study used snowball sampling from 20 companies from plastic industry in Thailand. The results found that 18 companies are medium and remaining are small. In addition, 19 companies are original equipment manufacturer while only one produced its own brand. Employees who worked in injection machines were measured performance at 80-90%. In contrast, other departments were not measured such as finishing, assembling and packing. Machine operated 24 hours with 2 shifts at 90-95%. Defect rate was controlled by customer at 2-3%. Work in process was 1-3 days. Meanwhile, finished goods inventory was 3-30 days. Turnover rate was 5-10%. The company should measure performance in all departments to know strengths and weaknesses. Then create project to improve productivity with suppliers, employees, and customers involvement such as 5S, QCC, Kaizen, TPM, TQM, ISO, SPC, and lean manufacturing system. The company should create work instructions both in Thai and Burmese or Cambodian to reduce communication issues. Small but frequent order which not worthwhile to set up frequently therefore the companies determined to produce high volume at once led to high level of inventory. Thus, the company should more focus on forecast and negotiation to avoid dead stock. The company should understand their employees to maintain current employees and create attractive welfare to attract prospect employees.

Author Information
Burawat Piyachat, Rajamangala University of Technology Thanyaburi, Thailand

Paper Information
Conference: ACBPP2015
Stream: Business Administration and Business Economics

This paper is part of the ACBPP2015 Conference Proceedings (View)
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Posted by James Alexander Gordon