APPLYING OF FSN ANALYSIS TO EFFICIENT PAPER ROLL WAREHOUSE MANAGEMENT: A CASE STUDY OF CORRUGATED PAPER PACKAGING COMPANY, BANGKOK

Abstract

This research aims to study the problems and causes of paper roll warehouse management processes and to improve the warehouse management efficiency of a corrugated packaging manufacturing company  in Bangkok. The FSN Analysis method was applied to classify materials according to their frequency of use and to allocate appropriate storage areas based on material movement characteristics. This approach enhances the speed and organization of issuing and storing materials. Additionally, problem analysis was conducted using a Fishbone Diagram to identify root causes, along with the design of a new warehouse layout to meet operational needs. Visual Control and Warehouse Layout techniques were implemented to facilitate product retrieval and improve accessibility.

              The analysis revealed that the main problem stemmed from disorganized storage and the lack of convenience in retrieval. A single storage location contained multiple product types (3 SKUs), causing delays  in searching and picking. The Fixed Location System used was unsuitable for the continuously increasing number of product types (Stock Keeping Units: SKUs). The number of SKUs increased from 327 in 2020 to 377 in 2024, averaging an annual increase of 12 items over four years. This rise resulted from diversification in paper grades, grammages, and sizes, rendering the existing storage system inefficient. Consequently, production downtime occurred in the corrugated box manufacturing process due to waiting for paper roll deliveries. According to the 2023 records, the average corrugated paper production rate was 8,096 meters per hour, equivalent to 17,001 square meters per hour. Machine downtime caused by paper roll waiting occurred 34 times, totaling 680 minutes (12 hours), resulting in a production loss of 204,012 square meters. At a sales value of 14.50 THB per square meter (based on 2023 prices), the total loss was approximately 2.96 million THB.

              After implementing FSN Analysis and redesigning the warehouse layout, inventory was classified into three categories based on usage frequency: Fast Moving (F) materials, with a usage rate of 85.6%; Slow Moving (S) materials, with a usage rate of 10%; and Non Moving (N) materials, with a usage rate of 4.4% (as shown in Table 2). The new layout reduced operational steps from five to three (a 40% reduction), decreased the average paper roll retrieval time from 6 minutes 45 seconds to only 44 seconds per transaction (an 89.11% reduction), and reduced annual labor costs from 92,065 THB to 10,025 THB (a saving of 82,040 THB). No machine downtime occurred after the improvement. The study confirms that FSN Analysis significantly enhances warehouse management efficiency  in terms of time, cost, and operational accuracy.