Targeting Toward Optimal Inventory in Automotive Industry—An Analysis Based on Six Sigma Methodology
Year: 2025
Type: article
Abstract: Background: This paper presents an analysis and a structured framework for improving inventory accuracy in an automotive factory, considering the current context of global disruptions. In 2023, the company recorded 20,340 inventory adjustments (1695 per month) and a 0.24% monthly net value discrepancy (EUR 256,594 YTD), with a baseline absolute discrepancy of 2.21% of sales. The project aimed to reduce adjustments to below 700 per month and the net value discrepancy to 0.1%. Methods: The research followed the Six Sigma methodology’s Define, Measure, Analyze, Improve and Control (DMAIC) phases, integrating Root Cause Analysis (RCA) and Failure Mode and Effects Analysis (FMEA) to enhance inventory accuracy in manufacturing operations. Results: Implementation significantly improved inventory accuracy: monthly adjustments decreased from 1695 to 971, the highest RPN was reduced from 576 to 144, and the absolute discrepancy-to-sales ratio stabilized at 0.98% (a 56% improvement). Financial variance was reduced to EUR 1948.10 in Q4 2024, while organizational discipline, role clarity and process control also increased. Conclusions: The integrated DMAIC–RCA–FMEA framework proved effective and replicable, enabling systematic identification of root causes, targeted corrective actions and sustainable KPI-driven improvements. The results demonstrate a scalable approach to inventory optimization that supports operational resilience and supply chain performance.
Source: Logistics
Institution: Transylvania University of Brașov
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,689
OpenAlex ID: W7117457059