Overview
A Tier-1 supplier of friction plates partnered with Caresoft Global to transform its in-plant logistics operations. Facing frequent production downtimes, excessive resource usage, and significant congestion – along material delivery routes – the company sought a forklift-free solution to streamline material flow, enhance safety, and improve overall efficiency.
This case study highlights how Caresoft Global delivered strategic and impactful solutions that revolutionized their logistics operations. The results include over $1.4 million dollars in annual cost savings, the complete elimination of severe safety incidents, and a 97.7% reduction in near-miss incidents.
Project Scope
The initiative focused on addressing key challenges in two primary areas:
Material Delivery Optimization:
- Transitioning to a forklift-free environment to minimize aisle congestion and improve delivery efficiency.
- Redesigning material delivery routes and strategies for enhanced safety and productivity.
Safety and Cost Reduction:
- Reducing incidents and near-misses caused by bi-directional traffic and heavy forklift reliance.
- Lowering material handling costs by optimizing equipment utilization and delivery methods.
Challenges and Opportunities
The supplier faced several operational challenges, including:
Congestion and Downtime:
- Narrow aisles and heavy reliance on forklifts caused frequent bottlenecks, leading to delays in material delivery and production downtime.
Safety Risks:
- High bi-directional traffic from forklifts resulted in numerous near-miss incidents and a few severe safety incidents.
High Operational Costs:
- Excessive material handling costs due to inefficient delivery methods and overutilization of forklifts.
These issues highlighted the need for a comprehensive overhaul of the material delivery system to reduce congestion, enhance safety, and optimize costs.
Solution Implementation
Caresoft Global created a structured and collaborative approach to address the supplier’s challenges:
Material Flow Analysis and Strategy Redesign:
- Conducted an in-depth review of current operations, including time studies of indirect manpower and an AutoCAD mapping of pick-up and drop points.
- Redesigned the Plan for Every Part (PFEP) to define efficient material flow and streamline replenishment strategies.
- Transition from forklifts to tugger systems supported by 380 mother-daughter carts.
- Optimized material delivery methods and train-size optimization.
Simulation and Planning:
- Used Discrete Event Simulation to analyze congestion, validate delivery routes, and propose new strategies.
- Deployed an electronic pull system to ensure timely material delivery, reducing overstock and understock risks.
- Developed a detailed roadmap with CapEx justifications, ROI estimates, and implementation plans.
Implementation and Continuous Improvement:
- Established 2,000 feet of forklift-free aisles, reducing congestion and improving safety.
- Freed up 11 electric forklifts, saving USD 200,000 annually in operating costs for a 3-shift system.
- Introduced 5 new tuggers and trained staff on the optimized delivery processes for consistent implementation.
Results
The transformation delivered measurable and impactful results:
Safety Improvements:
- Near-miss incidents reduced from 87 to 2.
- Severe safety incidents dropped from 3 to 0.
Operational Efficiency:
- Aisle congestion reduced from 442 miles/day of material handling equipment (MHE) travel to just 90 miles/day.
- Optimized tugger utilization at over 80%, ensuring reliable material delivery.
Cost Savings:
- Reduced material handling costs from USD 2.8M to USD 1.37M annually.
- Achieved ROI payback within 2.5 years for the new tugger-based system.
Conclusion
Caresoft Global’s comprehensive logistics planning and forklift-free strategy enabled the Tier-1 supplier to achieve significant operational efficiencies and safety improvements. By implementing advanced simulation techniques, optimizing material flow, and transitioning to a tugger-based system, the company resolved its immediate challenges and positioned itself for long-term excellence in in-plant logistics.
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