Automotive Parts Supplier: Reduces Inventory and Improves Service Level
18.09.2014 |Rene Reiter
A manufacturer of plastic serial and original car styling accessories made for internal and external applications in passenger cars, identified a bottleneck in the foaming division of their production line. The large Austrian automotive supplier employed AnyLogic Simulation and Modeling software, which allowed examination of all possible resolutions without disturbing the current situation.
The project began by modeling the existing system which includes various types of personnel and qualification scenarios, set-up optimizations, and lot-sizing strategies, then produces reports with key performance measures including inventory, tardiness and service level.
Performance measures from the simulation model (inventory, work in process (WIP) and service level) compared to the prior year, and an in depth analysis of the manufacturing simulation model with the company partners were utilized for model validation.
Through running simulations and analyzing outputs, the automotive company found that a combination of adding a fitter to the night shift, making minor reductions in set-up times, and reducing lot-size, lead to a reduction in inventory of 10.6% and an improvement in service level of 8%.