From Complexity to Efficiency
A leading automotive manufacturer faced the challenge of aligning supplier shipping quantities to a Just-In-Time (JIT) shopfloor environment. With 1500 SKUs to be reviewed, the company needed to optimize lot sizes across more than 100 suppliers. The company faced hurdles such as resistance to change, financial constraints, tight turnaround times, and ensuring packaging quantities aligned with assembly needs while maintaining production stability. The project had challenging milestones with a direct impact on assembly line performance and a critical financial business case to deliver.
Ambition: Streamlined operations, enhanced performance
The goal was to streamline operations and enhance performance by optimizing lot sizes and improving coordination with suppliers. The focus was on statistical optimization, assessing shopfloor impact, managing stakeholders, and planning milestones and negotiations with over 100 external suppliers.
How we helped: Optimizing lot sizes and standardizing practices
An in-depth analysis led to the statistical optimization of lot sizes, ensuring that packaging quantities were aligned with assembly line needs. Gemba walks were conducted to assess the impact on the shopfloor, and stakeholder management was prioritized to ensure smooth implementation. Detailed milestone planning and negotiations with suppliers were carried out to meet project goals. A comprehensive lot size optimization strategy was developed, and a centralized planning organization was established to standardize practices across all production facilities.
Results: Enhanced efficiency and reduced inventory levels
The project resulted in a successful reduction in inventory and a significant workload reduction in repack operations. Packaging quantities were aligned with assembly line needs, resulting in minimized waste. These improvements have set the stage for sustained operational efficiency and performance.
Ready to improve your shop floor operations with less inventory flying around? Contact us today to learn how we can help you.
