Throughput, Cycle Time and Bottleneck Analysis with
ProModel Simulation Solutions for Manufacturing
Improving
throughput and reducing cycle time are two of
the issues most sought after in the manufacturing
world. If you can increase throughput and/or reduce
cycle time, more can be sold, and in turn more
money made for the organization. Theory of Constraints
or Bottleneck Analysis is one of the most used
methodologies for helping to identify bottlenecks,
determine an appropriate solution for overcoming
the bottleneck, and thereby increasing throughput
and reducing cycle time. ProModel’s manufacturing
simulation solutions, are well suited to assist
the Throughput, and Cycle Time Reduction initiatives
by helping to identify the bottlenecks or constraints
in the system, test alternative solutions, and
the study the overall impact to see if the changes
will actually increase throughput and reduce cycle
times or not. Using simulation in this fashion
will minimize the risk and expense of finding
and implementing the most effective solution.
Please right click and choose
"play" to view an example model of ProModel
Manufacturing Simulation.
Throughput, Cycle-Time, and Bottleneck Analysis
Project Reviews:
Global Leader in the Design and Manufacture
of Floors, Ceilings and Cabinets
Solution: Cost Reduction, Throughput
Increase and Capital Justification
The client was facing increasing costs from international
suppliers. At the same time the company was seeing an
increase in demand for hardwood flooring products. This
situation led to the objective of increasing throughput
in one of their U.S. solid wood manufacturing plants,
while simultaneously reducing direct labor requirements
and scrap/raw material waste.
Results:
• Discovered the means to meet required throughput
while reducing labor costs by 20%.
• Minimized wood scrap and significantly reduced
material costs by measuring and sorting boards so the
best combination of 2.5” and 3.5” could
be cut from each board.
• Estimated savings from this project are $1-
3 million.
• Improved their ability to clearly and concisely
communicate the value of process improvement to stakeholders.
Solution: Simulation Proof of Concept and New
Product Introduction
Teradyne’s Operations NPI (New Product Introductions)
Team felt that new tools were needed in order to provide
improved strategic decision making and the desired increased
confidence in the risk assessment for overall company
performance. The evaluations would have to account for
real life variability and interdependencies as well
as allow multiple scenario evaluation and sensitivity
analysis.
The Operations NPI Team, decided to test ProModel’s
simulation technology to see if it could provide the
level of answers that the current tool-set and methods
could not. The initial objective for this project was
a “proof of concept” for simulation technology.
If the proof of concept worked, then simulation would
be incorporated into the Operations NPI tool-set for
decision support.
Pillowtex Corporation - $2.2
billion company that manufactured pillows, mattress
pads, comforters, towels, and sheets.
Solution: Plant Consolidation and Manufacturing
Optimization
Pillowtex had recently filed for bankruptcy and desperately
needed to cut costs and regain profitability in the
next 18 months or face the prospects of going out of
business. It had five plants in the United States; all
making the same three products (pillows, mattress pads,
and comforters), all using identical equipment. Each
plant had similar total floor space, but had different
layouts, different material handling methods, different
cycle times, and different costs.
Total savings were based on closing two plants and
all the associated costs (moving equipment, factory
layouts, moving/hiring people, etc) coupled with the
previously noted cost savings. Completion of this project
resulted in a net savings of $12.2 million, with a payback
period of nine months
Solution: Lean Analysis for Appliance Assembly
Throughput
Throughput from the dishwasher tub line was not keeping
pace with demand from the final assembly area. In order
to increase the tub line throughput, the client added
an extra shift at an annual cost of $275,000. The additional
shift should not have been necessary given that the
takt time for all tub operations was less than the required
takt time at final assembly.
This project was completed in two weeks using ProModel
software and services. By eliminating the additional
shift, the company realized an annual savings of $275,000.
The ROI in the first year alone from this project was
% 1,100 and the payback period was less than 2 months.
