PROJECT: Optimizing Operations through Process Simulation and Lean Techniques

THE COMPANY:

A global company in the bedding and accessories business.

THE PROBLEM:

The popularity of their products have created explosive demand and the company needed to know the absolute maximum capacity of their current manufacturing and assembly operations.  They need to know how much space they should allocate for manufacturing, assembly, WIP, and finished Goods.  Space constraints were already choking their Finished Goods output, and too much inventory of component parts was creating factory bottlenecks.

THE SOLUTION:

The company called Claris Solutions to complete detailed flow process charts and a production/assembly capacity model to define current operations and space utilization.  Claris built the model  while collaborating closely with their engineering team to make sure we included all of the variables and matched the real probabilistic variability of man, machine, and space/time.

THE RESULT:

We created a LEAN VISUAL process simulation over layed on The Autocad Plant Layout so the executives could see the effect of changes over long periods of time in the animated simulation model.  The model showed our client the resource utilization (people and equipment), inventory shortages, space utilization, and overall cycle time.  Once this model was created, we got the team together to determine a way to optimize production within existing space constraints.

After running model scenarios the bottleneck issues stuck out like a sore thumb.  Managing Material Handling routes with Automated Guided Vehicles’s, and using Kanban methods for WIP were the breakthrough we needed.  In addition, we could recommend right sized production lots that matched with reduced cycle time – which increased their overall production capacity in the current space by over 20% and delayed spending capital on another facility.  

DO YOU NEED THIS?

Being able to understand capacity constraints and optimize a facility footprint can unlock improved cycle time, decreased manufacturing cost, and optimized inventory levels.  Can your company use this type of analysis and model to create a long range plan for your operations.  Contact wade.mosteller@claris-solutions.com for more information.

Claris helps companies improve their performance every day.