Success
Stories From the Automotive
Industry:
BLMC has served the automotive manufacturing market for
the last 15 years, and some of our principals have been
in it for over 30 years. It was the first real end-to-end
assembly process that was automated and many current industry
practices are based on the errors and successes in the
Automotive Industry. We have worked with Automotive companies
in simplifying their manufacturing processes using lean
manufacturing and flexible automation techniques. We have
increased capacity on automated lines through our knowledge
of flexible automation design and use, and how to effectively
tie the people on the line to the power of the automation.
We have helped clients layout their automation more effectively,
with a lower cost and substantially lower lead times.
We have worked with thought leaders in component design
on future concepts of products and design, including the
manufacturing processes and the supply chain concepts
associated with flexible automation. Our World Class Manufacturing
Metrics developed around optimizing flexible automation
for the automotive industry is now used for optimizing
the design of entire factories in all industries. Our
history in this segment is rich with success and we have
been privileged to work here. There is little that we
haven’t seen or done in this industry.
Read some of our Automotive
success stories:
Success
Stories
Story #1 Synopsis:
Lean Manufacturing for High Product Mix Plants
Problem:
Our client is a $65 million manufacturer of tool &
die supplies, supporting the automotive and appliance
industry, with nearly a dozen manufacturing and distribution
facilities in the U.S., Canada and Mexico. The company
was considered the “high price” alternative
to competitors across the U.S. and Canada. The company
was losing market share and was marginally profitabile
What We Did:
Provided assistance to reorganize the management
reporting structure, resulting in fewer layers of management
and improving communications and accountability.
Used plant rationalization strategies to minimize
the number and type of operations. Evaluated the number
and location of the plants and distribution offices.
Closed unprofitable and under utilized facilities.
Used our process reengineering methodology to reengineer
the sales, customer service and distribution processes.
Launched an e-commerce solution that provided customers
the ability to place orders and check order status on-line.
Used Supply Chain Management strategies to streamline
the supply chain.
Impact:
Reduced product cost and SG&A by over $5.0 million.
Increased cash flow by nearly $6.0 million.
Reduced lead-time by 85%.
Reduced work-in-process inventory by 75%.
Success
Stories
Story #2 Synopsis:
Improving Flexible Automation
Problem:
A major automotive electronics company had spent over
$60 Million on an automated line for building electronic
engine control modules (EEC’s) located in a new
factory in Spain. The design was based on a 10 second
interval tac time, and it was running at over 21 seconds…substantially
constraining the new plant’s planned output and
moving into the lost profit category.
What We Did:
Did an assessment of the odd form insertion system
that consisted of 13 robots inserting 39 different parts
with 25 different boards…true flexible automation,
and determined that the parts feeders weren’t
working as planned, the robot accuracy was poor (failed
transaction requiring reboot was occurring every 20
transactions) and the work staff was young and recently
trained.
Brought in a master toolmaker to redesign the feeders
and a control builder to reset the robotic accuracy
and improve the uptime of the robots.
Retrained the staff to do rolling changeovers so that
multiple boards were on the line simultaneously, taking
advantage of the flexible automation design.
Did an analysis of the OEE and uptime of the line
and put processes in place to increase the uptime to
over 95%. Moved the robot transaction failure from 1
in 20, to 1 in 10,000.
Impact:
Brought the tac time down to 8 seconds…tripling
the output of the plant and making it the most profitable
European component factory.
Brought the uptime of the line to over 95%.
Changed the profit line in this plant by over $30
Million a year.
Allowed these improvements to be transferred to the
US plant where 3 of these lines existed with the same
set of problems…we did this work also, and saved
this company over $100 Million per year as a consequence.
Success
Stories
Story #3 Synopsis:
Rapid Design of Assembly Line
Problem:
An automotive electronics company wanted to install an
ABS automated line into an existing European plant in
a very shortened time period. Project Costs were increasing
and yield concerns were being raised. The design of the
line was very confusing and the reliability of the process
and the line was a critical determinate of the economics
of the line.
What We Did:
We established a joint company task team that looked
at all aspects of the product and the process…going
out 3 years.
We used BLMC’s World Class Manufacturing Metrics
to define the basis of the design with respect to quality,
setup, OEE and Uptime, distance, inventory residence,
use of space, time for building the products and flexibility
to handle different parts. With these metrics, we established
the specification for the equipment and the manufacturing
process within the walls of the plant.
We engaged with the automation vendor early and helped
complete the preliminary design in a 6 week period of
time.
We helped train the people on their work tasks for
the new line.
Impact:
We reduced the lead time to put this line in by 60%
and the cost by over 30%.
The line was installed quickly and was very reliable
in uptime and process while encompassing a growing number
of variations of the product.
The plant became the main plant for both volume production
and new product introduction.
Success
Stories
Story #4 Synopsis:
Developing Economic Concepts in Automobile Electronics
Problem:
This automotive company was debating the cost of wire
harnesses versus decentralized computing and wanted to
have some sense of the breakeven point…since wire
harnesses were over 50% of the cost of computing in the
car.
What We Did:
We set up a value engineering project looking at all
of the functions of the electronics and the distribution
of those functions… as well as the costs for those
functions…and built a cost model.
We looked at the future ideas around centralized and
decentralized computing and used the value engineering
model to cost out the variables in the concepts.
Impact:
Determined that decentralized computing was more cost
effective if it could be close to the function it was
effecting and could be used to test the subsystem; otherwise
it was more cost effective to centralize the computing….like
the EEC module.
This was one of the first logical conceptual conversations
around Telematics in the car…the ability to test
a subsystem before putting it into the car, and then
test the system, and then the entire car. This set the
design fabric for electronics in the car for the next
5 years.
Success
Stories
Story #5 Synopsis:
Rapid Flexible Automation Design and Implementation
Problem:
This automotive component company wanted to put in a new
automated line to build window raising systems and needed
it in a few months, rather than the quoted 15 month lead-time
and the $3 Million dollar price offered by conventional
automation houses.
What We Did:
Using the BLMC World Class Manufacturing Metrics,
we defined a loose set of specs for the system and with
the client, did a review of automation houses that could
do the work.
We asked one house to put together a project team
consisting of a master tool maker, a control builder,
a mechanical engineer and an electrical controls designer
along with a project manager to develop a preliminary
design that would be paid for by the client.
We asked the client to put together a project team
that would work with the automation house in defining
the total environment for the design…and got both
teams working on optimizing the design and the total
processes…from parts in the door, to the feeding
of the parts into the system, to the testing of the
assembled product, to the shipment out the door, and
the variation of designs going out several years.
We completed the preliminary design in 6 weeks and
the automation house bid on that design…got the
bid and built it in 3 months.
Impact:
The automation was up and running in 4.5 months at
a price of less than $1 Million.
The uptime of the equipment was on the order of 95%
instead of the standard 75-85%.
The quality of the product was on the order of 3 parts
per million failed in the process.
Everyone in the factory had ownership to the concepts
of the design and made it a centerpiece of good assembly
practice going forward.
"A business absolutely devoted to service will have
only one worry about profits. They will be embarrassingly
large."