Nearing Facility Max Capacity

Cycle time from more than 7 days to less than 3 days.

Case Studies

---

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.