Case Study 3-06524
The client had an immediate need to generate cash flow and labor reductions were the target. IET was able generate $200,000 annual savings by rebalancing a major assembly line in two weeks.
A tier one automotive supplier specializing in the design and manufacture of welded steel components that provide structural integrity for a vehicle.
IET viewed this project as a classic line balancing exercise. After developing a thorough understanding of the product’s Bill of Materials and processing sequence, an IET engineer performed detailed stop watch time studies on all 34 stations. Work elements were classified as value added, non-value added, machine cycle, walk or wait/idle.
Some work elements were assigned to different stations and some methods were redesigned to reduce wasted motions and delays. IET’s analysis identified the minimum number of people required to run the line along with specific station layouts and work assignments for each person.
In less than two weeks, IET gave the client a plan to eliminate four people or 12% of the line labor. On top of that, all of the changes could be implemented with no capital cost.