Lead-time halved in heat exchanger production

Background

A central heating boiler manufacturer needed increased manufacturing efficiency to improve competitive position.

Objectives

• to optimise layout of factory
• to reduce manufacturing lead time

Approach

• to gain understanding of issues affecting lead time and capacity
• to build simulation of layout and test 'what if?' alternatives
• to assess alternative layouts and rank quantitatively

Benefits

• rapid comparison made of ~30 alternative layouts
• release of £525,000 capital from inventory and WIP
• lead time reduced from 9 to 4 days
• safer, more organised working environment

Conclusion

Simulation identified routes to significant efficiency improvements