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1st Tier Automotive – Case Study 2

1st Tier Automotive Lean Logistics

 

Logistics are often an afterthought for many businesses, whereas the Lean methodology for success has shown that putting Logistics first in the value system can often transform a company.

Putting Lean Logistical Practices in place can help to improve line stops, inventory turns, materials management, and work-in-progress.

Our Lean consultants have repeatedly helped companies move from just-in-case inventory management to dynamic pull systems with levelled production and Kanban systems suited to their environment.

Client

1st Tier Automotive

Scope

Eliminate chronic material shortages for a key sequencing plant with turnover in excess of £1bn

Diagnostic

  • Materials assessment
  • Logistics diagnostic

Actions

  • Introduce Lean logistics provider to optimise routes across Europe
  • Establish supermarket and line-side delivery based on pull, level scheduling of product, and the de-activation of ERP launches
  • Plan per part mapping to improve bill of material accuracy
  • Elimination of high bay storage

Results

  • £12m one-off inventory saving
  • Line stoppages due to material supply reduced to zero
  • Line delivery to OTIF improved by 46%
  • 100% of material controlled by pull systems within an 8 week production horizon
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