Design of a 10-digit Inventory Codification System for a Tube and Pipe Manufacturing Company in Zimbabwe

Lack of proper inventory control usually leads to high stock-outs resulting in ‘firefighting’. This paper looks at the engineering and technical services required to maintain smooth production with the aim of developing an inventory control system for the efficient utilization of resources. A work study was carried out at a tube and pipe manufacturing company in Zimbabwe followed by an analysis outlining the operations, limitations and process flows. An inventory audit provided some insights on the company's inventory control status. A 10-digit inventory codification system was designed based on 7 rules for generic application and capability for ‘make or buy’ decisions on spare parts. A cost benefit analysis revealed that although the project would initially be costly, a reduction in inventory can be realized through removal of slow moving and obsolete stock, realizing some annual savings in the long run, coupled with an improvement in record keeping and accountability.