Graduate Diploma: Inventory Management System for BAAS Microsystems

This report provides a comprehensive analysis of the current inventory management system at BAAS Microsystems, a leading company in the radar and sensor market. It begins by identifying the existing problems, such as the lack of a formal inventory system, unequal ordering patterns, and a reactive production approach. The report then outlines the current process flow, highlighting the company's departmental structure and order processing procedures. Non-conformances, including product quality issues and delivery delays, are discussed, along with their root causes. The report proposes improvements through the implementation of a new inventory management system, detailing its properties, the activities involved in its deployment, and the required resources. A detailed budget breakdown, including software licenses, hardware, and professional services, is presented. The report also covers OHS/WHS legislation considerations and includes sample meeting agendas and minutes related to the system's implementation. Finally, references are provided to support the analysis and recommendations.

Course
Code:
MEM80112
Course
Name:
Graduate Diploma of
Engineering
Unit
Code:
MEM234035A
Unit
Name:
Maintain and apply technical
and engineering skills

Introduction
This project report brings an overview of the "Inventory Management system implementation
for the BAAS Microsystems. BAAS microwave systems are one of the leading players in the
radar and sensor market. The current system followed by the BAAS has some limitations. In
this project, the current system will be studied and the problems faced by the company will
be founded. Then the appropriate technical solutions are suggested. And these things are
explained in this report.
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Table of Contents
Introduction................................................................................................................................1
Current problems........................................................................................................................3
Current process flow..................................................................................................................3
Non-conformances.....................................................................................................................4
Causes of Non-conformances....................................................................................................4
Issues which require specialist assistance..................................................................................4
Improvements.............................................................................................................................4
Process capability.......................................................................................................................5
Inventory Pattern........................................................................................................................5
Budget........................................................................................................................................5
OHS/WHS legislation................................................................................................................6
Properties of inventory system...................................................................................................6
Activities involved in the new system Deployment...................................................................7
Required Materials and components..........................................................................................7
Meeting Agenda.........................................................................................................................8
Meeting Minutes........................................................................................................................9
2

Current problems
Currently, the company facing many issues related to inventory management. Currently, they
don’t have any systems for managing inventory levels. The company takes orders from the
customers without any limitations. Order processing team assume that the resources are
unlimited. This behavior creates big problems for the storage management department. Also,
the different graphs and plots say that there is an unequal ordering. It also increases the
workload of the storage department. Also, they won’t follow any strategies to produce similar
products. They produce based on customer requirements. These are the major problems
present in the BAAS microwave communications.
Current process flow
The below-attached flow chart describes the actual workflow followed by the company. The
first diagram shows the different department and its key functions. The company currently
contains five major departments.
In simple words, the company currently takes orders from customers at any time and any
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numbers. There are no limits for the orders. In some cases, the company also takes unrealistic
orders. Then the project planners plan the resources required for the project. Then the
production process will be carried out.
Non-conformances
In the current situation, the company faces some issues related to the product quality and
product delivery delay.
Causes of Non-conformances
Main reasons for the non-conformances are listed below.
 Poor inventory planning
 Poor process planning and tracking
 Poor communication between the different departments
Issues which require specialist assistance
Here the deployment of the inventory management system requires expert assistance.
Because these single steps help to resolve the major problems present in the company.
Assistance of specialists can helpful for the employees. It reduces their complexity of the
works.
 In the inventory management system we need to develop the inventory pattern. This
work won’t be done by the employees in the factories. For that the special experts
they are familiar in the inventory management system will be hired.
 Also the inventory management system available in different versions. For choosing
the most appropriate version we need expert assistance. Experts can analyze our
company needs and they find the most suitable system. It involves the selection of
different hardware systems and fleet tracking system etc.
 In the current system, the company follows the Last in First Out. This system is in an
ineffective system. If the inventory management system implemented, the old stock
kept on the self only.
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Improvements
By implementing the Inventory management system the following benefits will be achieved
by the company. And they are listed below.
 Increase the productivity and efficiency of the operations.
 Reduce the cost required for maintain the inventory
 Maximize the sales profits.
 Helps the coordinate overall business
 Allows to deploy automation systems.
 Increase the customer happiness.
Process capability
Inventory management system improve the overall performance of the industry. Especially it
helps to improve the process capability of the company.
Inventory Pattern
The above plot shows the current production rate of the company. From that, we can able to
know about the current requirements of the production line. According to that, we need to
develop the inventory. In the first quarter of the year, the company’s production is high. And
slowly it decreases throughout the year.
Budget
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In the modern world, all companies face these problems during the implementation of the
latest technologies. And it is the price of the system. Most of the new and effective systems
like inventory management system etc. require huge capital. Here the major cost involved in
the Inventory management system for BAAS is discussed. There are nine major elements are
the major reasons for the higher capital costs and they are shown in the below-given table.
Cost Elements Cost
Software License $40000/Year
Optional Modules $25000
Server and Hardware costing $40000
Maintenance & Support &25000/Year
professional Services $18000/Year
Internal Costs $14000
Wireless Costs $8000
Contingency $32000
OHS/WHS legislation
 Ensure and maintain the continuous updating of the OHS system
 Develop the risk control strategies related to the work place
 Deploy hazard identification and assessment process.
 Provide training to the employees.
 Before taking decision investigate all the aspects
 Develop OHS policy and procedures.
The above given figure shows the key elements of the OHS legislation system.
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Properties of inventory system
The suggested system has six major properties. And they are discussed in the below section.
 Basic Inventory Control
 Barcoding and Scanning
 Demand Forecasting
 Accounting Integration
 Lot Tracking
 Support for kits
Activities involved in the new system Deployment
Deployment of the new inventory management system done by the below given 5 steps.
Step 1: Implementation development team
Step 2: Change Management plans and new process
Step 3: Forecasting costs and budgets
Step 4: Development of hardware infrastructure and software installation
Step 5: Training
Required Materials and components
The Inventory management system requires the below mentioned materials and systems.
These are only the major elements required other than that some other materials are also used.
 Computer systems
 Servers and database system
 Hand held devices
 Barcoding systems
 Barcode scanners etc.
 Inventory Management Software.
 AGV and latest Material handling equipment’s.

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Meeting Agenda
Meeting/Project
Name:
Discussion on new inventory management system implementation
Date of
Meeting:
(MM/DD/YYYY)
7/1/2019 Time: 10.00 am
Meeting Facilitator: Technical President Location: A1- Meeting Hall /
Administrative block
2. Attendees
Name Department/Division E-mail Phone
James Storage planning [e-mail] 123-123-1223
John Production planning [e-mail] 133-133-1333
Fedrick Accounts and Finance [e-mail] 144-144-1444
Starc Production [e-mail] 155-155-1555
3. Meeting Agenda
Topic Owner Time
Introduction to the meeting Technical director 5 min
Presentation on Inventory Management system James & Fedrick 10 min
Risk overview John 5 min
Conclusion Technical director 3 min
4. Pre-work/Preparation (documents/handouts to bring, reading material, etc.)
Description Prepared by
Meeting Circular Starc
Meeting Agenda Fedrick
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1. Meeting Objective
 To discuss about the deployment of new inventory management tool.

Meeting Minutes
Meeting/Project Name: Discussion on new inventory management system implementation
Date of
Meeting:
(MM/DD/YYYY)
7/1/2019 Time: 10.00 am
Minutes Prepared By: Starc Location: A1- Meeting Hall /
Administrative block
1. Meeting Objective
 To discuss about the deployment of new inventory management tool.
2. Attendance at Meeting
Name Department/Division E-mail Phone
James Storage planning [e-mail] 123-123-1223
John Production planning [e-mail] 133-133-1333
Fedrick Accounts and Finance [e-mail] 144-144-1444
3. Agenda and Notes, Decisions, Issues
Topic Owner Time
Introduction to the meeting:
 Intro about the meeting
 Discussion of current problems
 Why the company needs Inventory management system
Technical director 15 min
Presentation on Inventory Management system
 Advantages
 Disadvantages
 Required changes
 Budget
James & Fedrick 18 min
Risk overview
Various risk involved in the process
OHS/WHS standards required etc.
John 9 min
Conclusion Technical director 2 min
4. Action Items
Action Owner Due Date
Approval Committe
e
/ CEO 7/25/2019
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References
Haji, A., Afzalabadi, M., & Haji, R. (2018). Pricing and inventory decisions in a vendor
managed inventory system with revenue sharing contract. Uncertain Supply Chain
Management, 299-320. doi: 10.5267/j.uscm.2017.11.001
Mirzazadeh, A., & Mohammadzadeh, M. (2018). A production-inventory model in vendor
managed inventory system with deteriorating items and pricing in fuzzy
environment. International Journal Of Logistics Systems And Management, 29(3), 296.
doi: 10.1504/ijlsm.2018.10010412
Mohammadzadeh, M., & Mirzazadeh, A. (2018). A production-inventory model in vendor
managed inventory system with deteriorating items and pricing in fuzzy
environment. International Journal Of Logistics Systems And Management, 29(3), 296.
doi: 10.1504/ijlsm.2018.089789
Rozhkova, N. (2015). Synthetic and Analytical Accounting of Inventory as a Tool to Improve
Inventory Accounting System in Vietnam. Journal Of Economics, Business And
Management, 3(5), 489-492. doi: 10.7763/joebm.2015.v3.233
Setiyani, L. (2018). Simple Method For Designing Inventory Management System. Faktor
Exacta, 11(3). doi: 10.30998/faktorexacta.v11i3.2780
Shimada, K., & Fujii, Y. (2011). Proposal of Intelligent Inventory System for Space Station
with IC Tag - Near Real-Time Onboard Inventory Management. Applied Mechanics And
Materials, 103, 68-70. doi: 10.4028/www.scientific.net/amm.103.68
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