Optimization Please

Line 4 is Down?!

July 03, 2023 John Buglino Season 1 Episode 3
Optimization Please
Line 4 is Down?!
Show Notes

Oil pump manufacturer experienced a myriad of issues when one of their main lines went out of operation unexpectedly

Pain Points Summary:

  • Manufacturer failed to schedule preventative maintenance on their lines, resulting in an unforeseen issue knocking out a line for two weeks
  • The operation leader and team of schedulers spent two full days working to reallocate orders to other lines in the plant
  • Staff was unable to see the impacted orders and customers tied to the issue
  • Oil pumps set to be produced on other lines experienced delays due to a temporary halt in the operation
  • Manufacturer expedited the parts needed for the repairs – raising the cost of the line failure
  • Emergency shifts and overtime was utilized to extend the run times of other lines to make up for the line outage
  • Delays in orders being produced and in-hands dates were pushed out 1 to nearly 2 months in some cases
  • Manufacturer was unable to accept new business opportunities during the time of the line issue
  • Many customers cancelled orders when the new in-hands date to account for the delay was communicated to them by the account team

Optimization Summary:

  • Easily plan and schedule their production around required or scheduled maintenance windows
  • Complete line balancing optimizations to shift production to another line or bunch of lines to account for maintenance windows
  • Impacted customers, orders, and shifts in delivery dates are easily visible in a color-coded charts, graphs, and tables
  • In this case, accounting for an unforeseen issue, the ability to replan and reschedule given the unfortunate circumstance would take minutes, not days
  • Manufacturer would save on expedited shipping costs to obtain necessary parts
  • No emergency shifts or overtime would be needed to account for or make up for the line outage
  • Updated delivery dates can be communicated to the customers in a timely manner – saving the order or reprioritizing around the delay
  • Manufacturer can keep accepting new business opportunities