Case Study: Capacity and Production Improvement

January 11, 2019
INDUSTRY: Automotive
SERVICES: Logistics, Project Management, Restructuring & Turnaround  

SITUATION

A Supplier was falling short of the contracted capacity requirement for its wiring harness products through its pre-assembly and assembly processes.  During a product launch, the OEM had to shut down production to wait for the Supplier’s wiring harnesses.  In addition, even when sufficient harnesses were available, the packaging and sequencing of the harnesses into a complete vehicle set was not executed correctly.  Seraph was engaged by the OEM to assist in developing and implementing capacity and production improvement action plans

APPROACH

Using a statistical-based analysis of the Supplier’s production output, the Seraph team was able to show that the actual constraints were in the initial stages of the value stream, not on the final lines that the Supplier was targeting. 

The primary constraints were in the cutting and lead preparation areas.  A mathematical model of the cutting process was developed to calculate the optimal lot size, change over targets, and machine loading.

Production parameters and schedules were changed to implement the new lot sizes and machine loading.  Changes to the KANBAN system enabled a more visual tracking of the production as it flowed through the cells, providing support to drive the shop floor cadence.

RESULT

In order to meet OEM quality standards and complete exit criteria from their at-risk status, the Supplier was guided to refocus the plant logistics on discipline, processes, and controls.  By communicating goals and progress to all operators on the shop floor, Seraph helped the Supplier to develop a culture that supported a sense of urgency within the plant.  Floor-based workshops were conducted which identified 17 process improvements.  These improvements were implemented within the first few days and resulted in a 22% increase in OEE.

By laying out production flow, changing manning, reducing labor for product efficiency, and running workshops for employees on cutting machines for increased output, the Supplier was able to meet the OEM’s production requirements with the implementation plans developed with Seraph in a six-week turnaround.

About Seraph 

A global enterprise consulting firm that partners with business leaders to handle their most complex problems in areas such as supply chain, operations, and manufacturing challenges while delivering long-term operational and leadership improvements. Seraph has extensive on-site industry experience in the automotive, private equity, defense, medical device, electronics, energy infrastructure, and engineering sectors. The Seraph leadership team brings vast expertise across; crisis management, mergers, acquisitions, due diligence, restructuring, turn-around services, product launches, and logistics. Our four-phase process has been proven to provide quick payback and positive ROI, which is measured throughout customer engagement. Learn more at www.seraph.com and follow Seraph on LinkedIn.

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