Business Issue
Japanese manufacturer of automobiles was nearing maximum capacity on a distribution facility supporting a 5 state region. The facility final prepped vehicles from across the country and overseas, and also added more than $800 of accessories to every vehicle. Growth was predicted to move from 500-600 cars per day to 800-900 cars per day in five years.
Approach Used
Flow Consulting comprehensively studied the current accessory and model mix, and worked closely with the sales team to develop a 5 year projection. Using this data, Flow Consulting developed a Simul8 solution to model the expected loads, and designed a series of new facilities that would allow them to maximize throughput while not affecting current production.
Results:
Once all of the new facilities were put in place, vehicle cycle time moved from more than 7 days to less than 3 days, accessories per vehicle actually increased, and labor effectiveness increased while safety improved 10 fold. The facility is now routinely distributing over 1000 cars daily.
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