Team Members Reed Parker - ej0433

Ranjeeth Rikkala - fx0025Jimit Patel - fz6698

Computer Simulation Methods Term Project:Reducing Capacity Risk at Trans Parts Inc.

Background

Trans Parts Inc. is a global supplier of manual and automatic transmission parts to automotive OEMs.

Trans Parts Inc. has been sourced significant business by their customer base. The volume glide path will reach 1.5 million units per year by 2018 (800K 2016 volume).

If Trans Parts Inc. is unable to meet the increasing demand the OEMs must source alternate suppliers.

Based on observed current state performance losses and operational risk assessment Trans Parts Inc. has been elevated to red status by a third party supply chain risk management (SCRM) group.

SCRM has deployed a manufacturing support team (Reed, Ranjeeth, and Jimit) to work onsite with Trans Parts Inc. operations management to identify improvements in the process to mitigate the capacity risk.

Problem Statement and Motivation

Problem Statement Trans Parts Inc. needs to be producing 5400 parts per day to keep up with future demand.

They are currently producing 3400 parts per day leaving a daily gap of 2000 parts.

Objective/Motivation Simulate current and future state processes using Arena simulation software. Identify physicals based improvements to reduce capacity risk. Avoid cost to OEMs associated with onboarding a new supplier and purchasing redundant

tooling that Trans Parts Inc. already has.

Current State Value Stream Map

Input Data and Model Assumptions

Process Expression

Blanking 1+ LOGN( 8.81 , 8.04 )

Sand Deburr (Green) 1+ EXPO( 13.3 )

Sand Deburr 1+ LOGN( 6.34, 9.71 )

Vibratory Wash LOGN( 3.14,2.96 )

Hone 12+ LOGN( 18.5,21.8 )

Below are the process cycle times considering losses. To estimate travel time between processes, the team assumes a person can walk 5.46 feet

per second.

Arena Model

Arena Animation

Improvement Opportunities

1) Reduce cycle time at the constraint (hone) to improve overall performance from average of 12 seconds to an average of 10 sec per piece.

2) Reduce downtime and scrap at sanding operations, to increase first pass yield from 95% to 98%.

3) Reduce transportation waste associated with sending the part to vibratory wash, which is currently located across the plant from hone and sand. Relocate vibratory wash to reduce travel distance of 2000 ft. from sand/deburr, and 1650 ft. from hone, to 500 ft. and 350 ft. respectively.

Simulation Output (Current vs. Future State all Opps.)

CURRENT STATE FUTURE STATEOP 1 HONE TIME OP 2 SANDER EFFY OP 3 ROUTE TIME

Parts processed = 148 parts 148 parts 148 parts 148 parts

Parts shipped = 118 parts 124 parts 125 parts 122 parts

Avg. total time = 80 min 82.67 min 84.03 min 75.81 min

Avg. Wait time = 60.78 min 62.19 min 63.13 min 63.25 min

Transfer Time = 17.49 min 18.42 min 18.78 min 10.44 min

Recommended Improvements for Implementation

Based on cost, timing, and feasibility the plant has decided to implement 2 of the 3 opportunities presented. Opportunity 1:

Reduce cycle time at hone by updating and improving standardized work. Repair equipment that is currently not operational. Standardized work kaizen kicked off 12/20/16 with implementation and training 12/23/16. Equipment

repaired during Christmas shut down to be completed by 1/2/2017. Opportunity 2:

Reduce lost time associated with consumable parts (sander belts) not being in the right location at the right time.

1 week kaizen to kick off 1/9/17. 5S, new standardized work, and maintenance part location area built and implemented by 1/20/17.

Simulation Output (Current vs. Future State Opp. 1 & 2)

CURRENT STATE FUTURE STATE

Parts processed = 148 parts 148 parts

Parts shipped = 118 parts 127 parts

Avg. total time = 80 min 85.57 min

Avg. Wait time = 60.78 min 64.67 min

Transfer Time = 17.49 min 18.79 min

Additional Recommendations

The team at Trans Parts Inc. needs to work on reduction of unplanned downtime. This will have a dramatic impact on the Hone process distribution.

Continue to improve flow within the plant. Countermeasure poor flow with Kanban between uncoupled processes and utilize supermarkets to control batch size before and after outside processes.

Revisit Opportunity #3 (relocated vibratory wash) as current business leaves and new business takes its place.

Time is critical to help avoid additional costs to the enterprise.

Thank You