Logistics of Supplying to a Just In Time System
The client company had received an order to supply components directly to their customers high volume assembly line. The specified lead time for the supply of unique parts was 90 minutes. The brief was to design a process which would achieve this at minimum unit cost.
Simuledge built a simulation model of the assembly process in both plants (supplier and customer) and also simulated the logistics process of transporting parts from one factory to the other.
Due to the very short lead time, and the inconsistent number of orders being received per hour, extreme labour efficiencies were anticipated. The company needed to maintain service levels but also needed to reduce labour inefficiencies.
Having built the model, actual data from the process was used to verify the accuracy of the model. A range of different options were trialled on the model to test potential solutions and an optimum solution identified.
An optimum solution was identified which is being implemented. This will yield a saving of €600,000 per annum. Service levels will not be adversely affected by these changes. The model also shows that this new system is robust against changes in demand from the customer.