8-12 Weeks
4 – 6 Months
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Industry: |
Global Automotive Supplier
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Company Size: |
8,000+ |
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Project Location: |
Mexico |
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Problem Statement: |
Our customer is a leading supplier to the Automotive industry. Due to substantial growth over the past years, one of their plants in Mexico has reached its maximum production capacity. A large OEM wants to place additional, long-term business with this plant, but without the ability to increase the production capacity, the order has to be rejected. |
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Meeting: |
High level understanding of all core production processes and the used machines; plant footprint with all operational/functional areas
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Deep Dive: |
Detailed map of all operational/functional areas in the plant; in depth analysis of area consumption per functionality and conceptual design of future plant layout
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Hypothesis: |
The deep dive revealed that 18% of the plant's footprint are used as storage areas for raw materials, WIP and finished goods. If all storage areas could be moved to an external warehouse, the freed up space could be used for production and increase the production capacity by 30%. The costs for external storage and material handling would be marginal in relation to the profit generated by the increased revenue.
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Project: |
2 consultants 12 weeks |
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Deliverables: |
Detail design of future plant layout developed and approved All future core processes aligned and mapped Market analysis for rental warehouses as well as for 3PL providers performed Self-managed external warehouse vs. 3PL simulated and evaluated Implementation road map external warehouse developed |
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Bottom Line Impact: |
Increase production capacity by 24% External logistics infrastructure only 3% of additional revenue |
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