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Material Flow Analysis for a Vehicle Manufacturer The manufacturer produces three vehicle models in a single building. The challenge facing the logistics team was to keep these vehicle assembly lines supplied with material and manage the implementation of new model year changes, most of which increased part counts and complexity. The factory logistics activity is sandwiched between a distribution centre housing the stock and the prime user, vehicle assembly. Sirius Logistics undertook material flow analysis to review the factory logistics, and project managed implementation of the changes. The improvements were effected through a combination of infrastructure modifications and operational management changes. Key to the analysis was data collection. Information was gathered on the movement of trailers, pallets, Material Handling Equipment (MHE), about the delivery profiles, standard and emergency deliveries and part level data. In the main receiving deck material flows were completely re-organised to allow inward and outward material movement to be segregated and material to flow across the holding area. This change effected a 24% increase in capacity and halved congestion in bottleneck areas. This also increased the number of parts that could be allocated a specific fixed location (a place for a part) by 35%. There was a dramatic reduction in the number of vehicle losses associated with this function as a result of the change. One of the models is supported by a major in-house sequencing operation providing 10 different commodities to line. As with many mature products the model year change gave the customer increased options and functionality and hence there were an increased number of variants to sequence. The area was completely re-organised to accommodate additional pick-faces and material storage. Material was stored in racks above the pick-faces and material presentation reviewed to prevent pick errors. Added benefits were realised with reduced MHE congestion and shortened distances travelled in replenishing stock. The area was kept flexible to future change by minimising the number of different rack apertures. Segregated areas were introduced for feeding small plastic boxes to line (plastic marketplaces) and introducing a place for everything. The marketplaces offer every part to the linefeeder in a logical sequence for him/ her to pick from. These areas make material available in a predictable location, allowing the line-feeder to respond to a call for any of his parts immediately. He directly locates them and delivers them just-in-time to line. Material is only ordered when a requirement for replenishment is identified (Kanban). The receiving activity was also reviewed and vehicle turnaround times shortened. This was achieved through improving the flow of inbound vehicles and deck activity, eliminating peaks of material and doubling deck capacity with an improved layout (without headcount increase). Essential to sustaining the improvements was the introduction of key performance indicators, allowing the Operations team to see when and where variability occurs and to respond proactively.
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