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Lot size optimization in a Just-In-Time environment

Customer case

Sector: Automotive

Client requirement

In the dynamic world of automotive manufacturing, our client, a leading automotive manufacturer based sought to revolutionize its operations. Their goal was to strategically realign supplier shipping quantities with the Just-In-Time (JIT) demands of their shop floor. With over 100 suppliers and a staggering 1500 SKUs requiring review, the challenge was substantial. 

 

Challenges

The automotive giant faced several significant hurdles, including:

  • Overcoming resistance to change from both suppliers and internal stakeholders.
  • Managing financial constraints and pressures within tight turnaround times.
  • Ensuring packaging quantities aligned seamlessly with assembly needs while upholding production stability.

 

Approach

Our approach was multifaceted and strategic:

  • We utilized statistical optimization techniques to determine optimal lotsizes for efficient resource utilization.
  • Regular Gemba walks were conducted to assess assembly activities firsthand and identify areas for improvement.
  • We meticulously managed stakeholders, including engineering, production, purchasing, and logistics.
  • Through milestone planning and negotiations, we facilitated the timely implementation of changes with over 100 external suppliers.

 

Results

Our teamwork paid off, resulting in important achievements: 

  • Inventory levels were successfully reduced, leading to enhanced operational efficiency.
  • Packaging quantities were aligned closely with assembly requirements, minimizing waste.
  • Less rework due to reduction of repackaging were significantly reduced, reducing workload and improving overall efficiency throughout the assembly plant.

 

Moore expertise

Our approach drives tangible benefits, enhancing operational performance and strengthening our clients' competitiveness in automotive. Connect with us today to discover customized solutions tailored to drive your organization's success forward.