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Material Flow and Indirect Labor Study Reveals Potential Annual Savings in the Millions for Automotive Manufacturer



Automotive, Manufacturing

The goal of the project was to perform a thorough indirect labor review of the Production Control Department at an automotive manufacturing plant. The review was to identify areas of opportunity to increase operator and equipment utilization resulting in reduced plant cost and reallocation of underutilized manpower to meet projected Indirect Manpower Target Levels; with a defined manpower reduction objective.

Problems Prior to Project Initiation

  • OUTDATED databases and standard time elements
  • INEFFICIENCIES in storage areas and storage requirements
  • EXCESS LABOR in man assignment
  • UNPRODUCTIVE material flow
  • INADEQUATE reporting system for equipment utilization and maintenance scheduling
  • INEFFECTIVE bar code scanning system

Management Requirements and Expectations

  • Identify opportunities to reallocate minimally 22 Indirect Labor person assignments across shifts
  • Develop a reliable simulation tool capable of change impact evaluation for new and varying production run schedules and material handling resources
  • Reliable assessments of bar-coding proposals relative to their material-tracking and headcount-reduction potentials
  • Study, analyze, evaluate and recommend infrastructure requirements for traffic congestion points and fleet management for tracking of material-handling equipment

Benefits of Project Outcome

  • Opportunity for plant managers to review obsolescence levels in worker assignments based on union regulations.
  • Modules combine seamlessly to capture larger goals of the organization such as the development of team-based groups and cross-functional work classifications.
  • Critical findings and recommendations were identified to support the productivity improvement and cost-cutting objectives of the organization.

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