AMMANN is a Swiss family-owned company founded in 1869. Ammann manufactures not only asphalt mixing, concrete mixing and mineral processing plants together with the respective control systems, but also compaction machines and pavers. We were approached with a request to assess the current production regime (process?) and to design a model which would respect more modern trends in logistics. The pilot project aimed at optimizing assembly plants supplying.
The original delivery model for assembly plants consisted of a combination of workers’ attendance at one of the two warehouses located directly in the factory, and preparation of low-turnover goods in the central fasteners warehouse.
In the first phase, it was necessary to conduct a detailed analysis of consumption of each item in the fasteners category. For evaluation we used the Planning Wizard software which processed not only the historical data but also the outlook for long-term production plans. Volumes and consumption frequencies of each part were measured. Subsequently, we entered the data into the factory plan, which enabled us to visualize individual assembly shops and their fasteners consumption (consumption of fasteners?). The system optimization plan lied in the change of the supplying regime and in the introduction of small mobile “storage rooms.” Items were divided into three categories and situated to:
- the central warehouse used for storage and picking of material with low turnover
- two Kanban storage rooms (in the factory) used for storage of items with high turnover and for replenishing of the mobile storage rooms
- small mobile storage rooms used for storage of very frequented material, located directly in the vicinity of assembly points
We identified seven points with the highest frequency and volume of fastener consumption, where the mobile storage rooms were installed during the realization phase. Step-by-step we specified the proposed solution to the concrete plan specifying:
- the capacity of each of the mobile storage rooms
- the capacity of both Kanban storage rooms
- the manipulation batches for each item (the size of one package)
- the technical solution of the mobile storage rooms
- the box marking and container identification in the replenishing system.
Parameters of the proposed solution were verified in a dynamic simulation in the SIMUL8 software tool. We created a model of a new fastener distribution system in the factory, which respected the proposed inventory levels and the product portfolio in individual storage rooms, manipulation batches and the replenishing system. Historical data for individual fastener consumption (data from the company’s ERP system) and the production plan (and the corresponding fastener consumption during manufacturing) for the coming period were entered into the model. Based on this data, we checked the function and parameters of the proposed solution – we inspected potential deficits of individual items. We wanted to know when and where a deficit appears and how much time is lost due to the deficits, such as when a worker has to go to the central warehouse.
A comparison of the warehouse condition before and after the realization of the project
The final proposal meets the original requirements and significantly increases the logistic service of the assembly shops. We expect that the central warehouse load will be reduced by about a half. On the other hand, the new regime of the mobile storage places covers approximately 70 % of all consumption cases.
We anticipate that the results of this pilot project will enable us to extend our cooperation also to other material flows.
Used solutions and services
- Shifting the responsibility to the supplier of the fasteners (vendor managed inventory)
- Elimination of lost time thanks to reductions of the walking distance for workers who need fasteners
- Transferring part of the fasteners portfolio directly to the places of final consumption (assembly shops)
- Deployment of suitable technology and packaging management (mobile shelves, packaging Kanban)
Used solutions and services
- Cooperation with Logio changed the life of people in Bonavita
- A sophisticated inventory management system differentiates us from our rivals – COOP ZKD Sušice
- Increase from 0 to 2,500 cars a month in half a year - VW Russia
- ”The ability to evaluate the real order profitability wasn’t always a matter of course.” - SMP
- Before this project, all routes for Office Depot were planned manually. It took a lot of time and effort.
- “Finally, we got our supplies and procurement under control.” – Agrozet
- ”We decreased the seasonal stock value by 1.5 million euro in one year.” - SIKO
- We waltzed through the crisis management and optimization of a delayed project - GAT
- Manufacturing tires reliably while using 65 fewer lift trucks – Barum Continental
- An important supplier of electronics uses Planning Wizard - EMOS
- Optimization of material and spare parts inventory– Unipetrol
- We improved supplying of fasteners to assembly lines - Ammann a.s.
- We can test changes in our operations in two minutes instead of two weeks - Continental Trutnov