Novo Textiles Co. - Business Consulting Project

Project Details

Project Client: Novo Textiles Co.
Project Description: Process Improvement Analysis
Students: Andrew Yee, Sayi Siyapela, and Victor Wang
Term: Fall 2012
BCIT Program: Business Operations Management
A team of three BCIT students participated in a process improvement project at Novo Textiles Co. from September 14th to December 7th 2012. The purpose of the project was to analyze the current processes and make recommendations to improve inventory management systems in the warehouse.

Novo was utilizing an ERP system to record the data of the inventory flow. It was assumed that the ERP software was malfunctioning and it was causing inaccurate ERP reports. Tests were run on the ERP and they came out negative for errors in the ERP calculations. Because the ERP seemed accurate we focused our analysis on the current stock-out issues.

After brainstorming, data gathering, and data analysis we determined the solution is to implement a Kanban System. The improvements Kanban will bring to the current processes are:
There are two consequences of the symptoms; unnecessary costs and reduced customer satisfaction. The unnecessary costs will be reduced by approximately $49,535 annually and buffer stock will ensure customer orders can be met. Due to these benefits we recommend implementing a Kanban System.