Corporate Strategy Consulting
Major Automotive Original Equipment Manufacturer (OEM)
Future of Material Flow Planning
Preparing for a major building expansion while introducing its next-generation vehicle
In the automotive industry, continuous innovation is paramount for business growth and staying competitive. A leading Original Equipment Manufacturer (OEM) was preparing for a major building expansion while introducing its next-generation vehicle. The OEM’s goal to integrate automation into the launch led them to seek Ingenics’ expertise in logistics planning.
- Headcount Reduction: The new processes and material flow plans implemented by Ingenics enabled the OEM to reduce their logistics headcount by 26. Detailed analysis of employee utilizations in the As-Is process uncovered waste and additional opportunities for efficiency gains.
- Increased Automation Integration and Reliability: Ingenics helped the OEM successfully implement over 30 autonomous vehicles into their production. The process was designed to be flexible to business demands without disrupting partner processes, including exception processes if automation fails.
Understanding the Challenge
The OEM needed Ingenics to optimize their material flow plan, including the use of Automated Guided Vehicles (AGVs), in alignment with their ongoing expansion efforts. The solution needed to be scalable to allow the OEM to adapt quickly once the product launch and building expansion were completed.
1. Increased Demand: The increased demand for products required the OEM to boost their throughput. Ingenics needed to determine the necessary logistics resources to support this increased production.
2. Optimizing Train Routes: The building expansion necessitated a re-evaluation and optimization of the current train routes.
3. Efficiency Gains: The OEM aimed to reduce headcount by eliminating unnecessary efforts and increasing efficiency. Ingenics was tasked with finding efficiencies in the material flow process to realize these gains.
Approach
The project spanned 13 months and involved a Senior Project Engineer (SPE) who assessed their material flow processes and developed a new process using autonomous vehicles.
1. Data Collection and As-Is Analysis
- Reviewed logistics processes and material flow, evaluated maps of train routes, and conducted traffic analysis of the current state.
2. Defining the Future "Ideal-State"
- The OEM’s business strategy shifted during the project, necessitating the development of a new process.
- The project was divided into five Use Cases.
- The SPE collaborated with logistics planning to predict future volume with the new product launch.
- New processes were developed for each use, from distribution point to lineside delivery.
3. Structure Planning and Installation
- Ingenics was responsible for planning and sourcing structures and safety visuals. The SPE designed safety visuals meeting OEM and related standards and managed the process from procurement to installation.
Impact
- Headcount Reduction: The new processes and material flow plans implemented by Ingenics enabled the OEM to reduce their logistics headcount by 26. Detailed analysis of employee utilizations in the As-Is process uncovered waste and additional opportunities for efficiency gains.
- Increased Automation Integration and Reliability: Ingenics helped the OEM successfully implement over 30 autonomous vehicles into their production. The process was designed to be flexible to business demands without disrupting partner processes, including exception processes if automation fails.
Summary of Realizations
As technology becomes a competitive edge in the manufacturing landscape, the ability to integrate new tools into existing processes is imperative. Ingenics’ adaptability and the innovative nature of their consultants supported this OEM in designing a material flow process capable of sustaining business growth. The success of this project led to the OEM tendering Ingenics for a similar project after their plant’s expansion.