INDUSTRY: Automotive Manufacturing
SERVICES: MOVE Methodology: Layout Optimization. Material Flow. Warehouse (WH) Visualization.
Situation.
A high-volume precision machining customer, who provides components to a leading Tier 1 manufacturer, was experiencing late-open sourcing changes that were leading to program launch milestone delays. To aid in supporting the production ramp up, an analysis and re-evaluation of warehouse space, capacity review, and layout optimization was deemed necessary. The client requested to optimize material flow, consolidate excess inventories, and design “best in class” processes, and needed Seraph’s expertise to reach these goals.
ACTIONS.
3 key work packages were identified:
WORK PACKAGE 1 |
Objective: Optimize material storage and flow Deliverables: • Develop Plan For Every Part (PFEP) • Develop a layout optimization ($150M revenue estimate) • Evaluate the need to lease an additional 100K sq. ft. facility • 12-Month layout transition plan |
WORK PACKAGE 2 |
Objective: Focus on warehouse visualization and capacity review for the client’s customer Deliverables: • Implement WH visualization • Develop a detailed capacity review • Define internal ramp plan vs. customer ramp plan • Develop a 1–2-page capacity communication tool |
WORK PACKAGE 3 |
Objective: Focus on headcount and organization structure optimization and MDI Deliverables: • Implement MDI Process in model plant • Daily & hourly routines • KPI Implementation • Defined headcount rationalization to identify required headcount • Created organizational charts in anticipation for rapid growth |
Seraph’s internal process are tailored to meet the needs of the situation and provide a seamless transition to the new facility.
The MOVE methodology has three keys to success:
- PLAN: Develop a structured, meticulously detailed, and clear, Project Management Plan – “If we fail to plan, we plan to fail.”
- DON’T LOSE SIGHT OF THE PEOPLE: Relocation and consolidation is more than product and process, it is People – “Success or failure always depends on people.”
- GOOD TEAM COMPOSITION: Balance the skills and interpersonal dynamics to create a high-performance Team – “…can and will influence results.”
Seraph effectively drove and completed all work packages, training the team to ensure future success.
Seraph effectively drove and completed all work packages, training the team to ensure future success.
Supply Chain
- PFEP was developed
- New production layout was created to move production into the current warehouse (~40% reduction in space while improving material flow) and revamped client’s second external warehouse layout.
- Completed material flow overview and improved the current process in place.
- Created a tracking tool for capacity/ramp plan.
Organizational Alignment
- Implemented Top 5 KPI Boards, hour-by-hour trackers, and other necessary visual management tools on the floor.
- Completed and verified MDI & leader standard work training sessions with necessary plant personnel.
- Implementation and completed training of ProductionNet.
Results.
WORK PACKAGE 1
- Optimized material storage and flow
- Developed PFEP for client and trained necessary personnel how to maintain and implement for future product lines.
- Completed a 12-Month layout transition plan to effectively optimize client’s floor plan and material locations to maximize utilization of both the main production plant and the external warehouses.
WORK PACKAGE 2
- Implemented WH visualization standard for both the client to maintain and for the client’s customer to replicate.
- Completed capacity reviews and analysis allowing summaries demonstrating the current industrialization plans and assumptions for capacity to be created.
- Launched high level management and leadership KPIs in a model facility while mentoring the client teams to implement throughout remaining locations.
WORK PACKAGE 3
- Implemented MDI process in the model plant while teaching leadership to do the same for the remaining locations.
- Developed a matrix allowing for proper assessment of headcount of the organization that would also be applicable as new programs are launched.
- Developed organizational charts allowing the company to be scaled with the anticipated rapid growth.
Seraph saved the client money in the short term with initial savings during the project as well as long-term savings after the project’s end.
- $400K of warehouse space reduction
- Reduced inventory levels
- Improved external warehouse layout to optimize storage
- Redesigned a more efficient material flow process from external warehouse to production.
- Seraph’s resources were decreased after training client team members for continued future success.
