Addressing Production Challenges and Resource Constraints in Manufacturing

A manufacturing cell within an automotive Tier 1 supplier was encountering significant challenges due to an inefficient production process. With two operators working on the same machine within the dual-process cell, space constraints and miscommunication between the operators led to high scrap rates, poor on-time delivery, and a growing backlog of past-due orders. These issues not only caused operational inefficiencies but also contributed to increased expedited freight charges. In addition, the manufacturer was facing a labor shortage and was actively seeking solutions to reallocate resources to other production areas to address constraints on other production lines.

To address these inefficiencies, a comprehensive review of the packing process was conducted by HPS. This analysis revealed an opportunity to optimize packing density by implementing layered packing. This innovative approach allowed for additional pieces to be accommodated within each box. Furthermore, the production process action time provided ample time for the operator to place the finished piece in the box, cover it with a pre-cut sheet of paper, and retrieve the next piece for production.

To address these inefficiencies, a comprehensive review of the packing process was conducted by HPS. This analysis revealed an opportunity to optimize packing density by implementing layered packing. This innovative approach allowed for additional pieces to be accommodated within each box. Furthermore, the production process action time provided ample time for the operator to place the finished piece in the box, cover it with a pre-cut sheet of paper, and retrieve the next piece for production.

Annual cost savings of $90,000 achieved through a reduction in expedited freight expenses.