Overview
A global home appliance manufacturer partnered with Caresoft Global to provide design and simulation support for the expansion and optimization of its facility. With rising production volumes, the company needed to improve material flow, expand storage capacity, and ensure the facility could efficiently accommodate future growth. This case study highlights Caresoft Global’s comprehensive approach and the significant results achieved.
Project Scope
The scope of the project addressed five critical areas:
1. Conveyance System Design:
- Conceptual Design:
Caresoft Global developed a concept for the new conveyance system, considering the facility’s existing layout, anticipated production volumes, and material flow. The goal was to design a system that efficiently moved materials throughout the facility, minimizing delays and maximizing throughput.
- Optimal Placement:
The team analyzed different potential locations for the conveyance system, including wall-side and central placements. Factors such as ease of access, integration with existing systems, and workflow impact were considered.
- Control Logic Development:
Sophisticated control algorithms were created to manage sorting processes, ensuring materials were quickly and accurately directed to the correct locations. This logic was essential in preventing bottlenecks and maintaining steady material flow.
2. Stowage and Warehouse Expansion:
- SKU Velocity Optimization:
Caresoft Global conducted a detailed SKU velocity analysis to accommodate increased volumes. This involved optimizing storage based on SKU movement frequency to enhance space usage and accessibility.
- Racking System Design:
The design of new racking systems maximized vertical space and allowed flexible storage solutions to adapt to production requirements.
- Conveyance Integration:
The conveyance system was integrated into the expanded warehouse design, minimizing handling times and reducing material damage risks during transit.
3. Yard and Rail Spur Expansion:
- Yard Space Optimization:
Caresoft Global performed a space utilization study to optimize trailer parking, dock spaces, and staging areas to allow for more space. The goal was to streamline trailer movements and reduce turnaround times.
- Rail Spur Modification:
The rail spur was a critical component of the facility’s inbound and outbound logistics. Modifications to the rail spur increased capacity and minimized the distance materials travelled within the facility, resulting in reduced handling costs.
- Guard Shack and Roadways:
Infrastructure improvements, including the expansion of the guard shack and roadways, were designed by Caresoft Global to handle increased traffic volumes without causing operational delays.
4. Simulation and Layout Engineering:
- Data Collection and Analysis:
Caresoft Global started off with initial data collection inputs, such as Bill of Materials (BOM), 3D models, 2D drawings, and conveyance details, enabling accurate facility modelling and operational scenario simulations.
- Layout Engineering:
Caresoft Global updated the facility layout to accommodate expansions, including new stowage areas, staging zones, and maintenance facilities. The layout was designed to ensure optimal workflow and accessibility.
- Simulation of Scenarios:
Advanced simulation tools were used to model various ‘what-if’ scenarios, testing layout configurations, production line takt times, and material handling routes. These simulations provided valuable insights into potential outcomes, enabling informed decision-making.
- Performance Analysis:
Simulations generated key performance indicators (KPIs) like throughput rates, handling times, and resource utilization, guiding the team toward the most efficient layout and operational strategy. The target of 14,000 units per day was met, with room for future growth.
5. Continuous Improvement and Kaizen:
- Ongoing Refinements:
Caresoft Global worked closely with the client’s industrial and conveyance engineering teams to refine solutions based on feedback. Additional simulations were then conducted to test these improvements.
- Kaizen Implementation:
Caresoft Global proposed several Kaizen improvements, including adjustments to material handling, layout modifications, and updates to the conveyance system. These were aimed at boosting efficiency and reducing operational costs.
Results
The implementation of Caresoft Global’s solutions resulted in substantial improvements in the facility’s operations:
- Increased Throughput:
The facility was successfully optimized to meet the target throughput of 14,000 units per day. In certain scenarios, throughput was increased to over 17,000 units per day by strategically adjustments production line takt times and material flow processes.
- Enhanced Efficiency:
Optimizing the sorting system and reducing unnecessary material transfers significantly reduced delays and bottlenecks. Streamlined operations allowed for more efficient use of resources, including clamp trucks and other material handling equipment.
- Space Utilization:
The expanded stowage and warehouse areas were designed to maximize space usage without requiring significant new construction. This efficient space utilization enabled the facility to accommodate increased volumes while maintaining operational flexibility.
- Optimized Yard and Rail Operations:
The yard expansion and rail spur modifications improved the facility’s capacity to handle a higher volume of inbound and outbound shipments, reducing congestion and improving material flow. The redesigned guard shack and roadways contributed to smoother traffic management, ensuring efficient operations even during peak times.
Conclusion
Caresoft Global’s detailed, data-driven approach to facility design and simulation provided the global home appliance manufacturer with insights and solutions needed to expand and optimize its Frontier Distribution Center. The project not only addressed immediate operational challenges but also laid the foundation for future growth by creating a scalable, efficient, and resilient facility layout. The successful implementation of these solutions highlights the value of combining advanced simulation techniques with practical engineering expertise to achieve significant improvements in manufacturing and logistics operations.