ASSEMBLY
We STREAMLINE your Assembly
Common Tasks:
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Reduce assembly time to save labor costs
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Improve job preparation and scheduling
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Balance assembly station workload
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Reduce assembly downtime
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Outsource assembly of sub-components to external specialist
Methods and Tools:
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Lean Manufacturing
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Timing Analysis
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Process Mapping
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Poka Yoke
Reference Industries:
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Utility Vehicles
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Automotive
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Engineering
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Parts and Components
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Manufacturing
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Bicycles
Ø Project Duration:
Ø Project Payback:
4 - 8 weeks
5 - 7 months
bottom line optimization 15 - 30%
Industry:
Company Size:
Project Location:
Global Utility Vehicles OEM
60,000+
Germany/China
Problem Statement:
As part of a company wide cost reduction program, our client asked us to investigate the wheel-loader counterweight assembly process in their German manufacturing facility. High union labor costs, excess material movements to and from the external paint shop as well as frequent defects accumulated to completely unacceptable costs per unit. If those costs could not be drastically reduced, the client would shut down the counterweight assembly at their German site and supply preassembled units from Japan.
STREAMLINERS' Approach and Solution
Meeting:
High level understanding of counterweight supply chain and assembly process
Deep Dive:
Map counterweight supply chain and material flows (including external suppliers and paint shop) as basis to perform gaps and inefficiency analysis
Hypothesis:
Outsourcing of counterweight assembly process to non-union labor paint shop and delivery of preassembled counterweights to wheel-loader assembly line ("plug and play") to drastically reduce transportation and labor costs per unit
Project:
2 consultants
10 weeks
Deliverables:
Non-union labor paint shop staff trained on counterweight assembly process
Reduction of assembly costs by 39%
Quality performance >98% during pilot phase
Reduction of transportation costs by 34%
Bottom Line Impact:
Annual labor cost savings >$0.6 M
Annual freight savings >$0.2 M
Process Cost Reduction
Fees vs. Bottom Line Impact
