<![CDATA[The raw material used for the production process, 70% comes from outsourcing. Thishigh percentage is the main challenge for PT SEMB to control and ensure raw material is readywhen needed. The consignment model has a minimum limit and a maximum limit. The materialwill be kept at PT SEMB, while not being used these raw materials still owned by the suppliers,and the place to keep this material is not registered as PT SEMB in the system. This meansconsignment material should have a low inventory level because the ownership will change onlywhen the material is used, but the problem is from January to March 2019 inventory levelconsignment material has increased. One of the main problems is outdated information formaterial limits (min-max). This problem solved by making tools that can adjust materials limit(min-max) with the production process and at the same time, it's adjusted with the manpower todo the replenishment process at Lot 15. Improvement also made by changing the person whodoing open consignment from leader Lot 15 to warehouse leader Sensor plant. The results forthis improvement are decreasing average inventory levels from $362,221 (January-March 2019)to $240,327 (May 2019). Decreasing is approximately 33%]]>
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