Computer Integrated Manufacturing: Reengineering To Reduce Total Throughput Time In The Automotive Industry

Automotive Parts Manufacturer $120mm Sales Revenue

A key division of a $6 Billion corporation was facing a dramatic decision. Can it continue to operate, or must it close its doors? The division was a single-source OEM for one of the big three Detroit automakers. The pressure was on to reduce prices by 25 per cent, and reduce delivery time considerably, or lose the business.

The challenge was how to become a world class competitor for precision engineering designs. Following an initial analysis, the decision was made to rationalize the entire organization. The strategy adopted was to become a fast cycle competitor by reengineering to focused factories, and implementing computer-integrated manufacturing techniques.

The original plant was configured by process, such that part flows resembled bowls of spaghetti when traced on a plant drawing. Four distinct product lines were manufactured in the same plant, but machining was performed on one side of the plant, and assembly on the other. The end result was a major loss of time in manufacture in every product line.

The reengineering was approached in stages. The first stage was a rationalization of product lines with respect to processes, flows, equipment, and material handling. The second stage was a rationalization of supporting information systems. The third stage was a rationalization of the supporting organization structure. Each stage overlapped the others such that all three were in progress simultaneously.

One of the product lines we rationalized was clutches for automotive transmissions. Following the rationalization of the clutch product line, equipment was reorganized into cells. Straight-line flow was achieved, and the material handling system was rearranged and upgraded. Additional part washing and heat curing equipment was purchased to allow support operations to be localized within the focused factory.

These changes eliminated the need to externally schedule operations, and the clutch line now operates via a manual pull system. As incoming material reaches the clutch area, it enters the material handling system. Once in the system, parts are monitored throughout the machining and assembly process. The parts are moved through the factory on a system of pallet and parts conveyers. They are routed to arrive at the next operation on a Just-in-Time basis.

The following are the results: