ENGG 390 Reports (MEM Students)

Inventory Variance Project

Luke Amen


The ENGS 390 project focuses on the inventory variance and the creation of a process flow template. The Royal Oak branch of MacLean-Fogg is experiencing an inventory variance of $1.3 million per month. The project's major tasks included identifying the operation causing the variance, performing an audit of that process, presenting findings to upper-management and proposing solutions. The part washer/scaling process was identified as the source of variance and the full-day audit found that there was not a well-defined and repeatable operation. Work instructions were finalized and posting them lineside would prevent $364 thousand of variance per month.