Reduction of the excess obligation and processing costs associated with purchase orders marked for cancellation at Besi APac

Nijman, Bart (2019) Reduction of the excess obligation and processing costs associated with purchase orders marked for cancellation at Besi APac. Design Project, Industrial Engineering and Management.

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Abstract

Operating in the highly volatile semiconductor market, material management at Besi APac is a continuous challenge. Every day, the internally used MRP system presents new recommendations to reschedule or cancel orders to purchase materials from suppliers. Orders which need to be cancelled are especially a concern in Besi APac because they represent an excess obligation and involve high processing costs. Root-cause analysis indicated that the external variability in forecasted demand and customer order cancellations are the largest contributors to cancellation recommendations, however manually placed purchase orders have been found to still contribute to 24%. Purchase orders that are required to be cancelled also have been found to remain open in the system, keeping the open value of orders to be cancelled unnecessarily high. Five different solutions have been proposed to restrict the usage of manual orders within Besi APac, to increase the rate by which orders are cancelled once they are marked for cancellation and to monitor open orders better. It is expected the proposed designs lead to a reduction in the open value of and number purchase orders that are required to cancel at any time, and in effect will result in a reduction of the excess obligation that Besi currently is exposed to and the associated processing costs.

Item Type:	Thesis (Design Project)
Supervisor name:	Kloosterman, H. and Geertsema, A.A.
Degree programme:	Industrial Engineering and Management
Thesis type:	Design Project
Language:	English
Date Deposited:	19 Jul 2019
Last Modified:	23 Jul 2019 11:55
URI:	https://fse.studenttheses.ub.rug.nl/id/eprint/20356

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