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Approach: Process: Scenarios

Cost-of-Growth Reduction

Trying it on for Size

Reducing Cost of Growth through Production Simulations

A global supplier of automotive metal structural components was readying to add new products to its production plants. But this positive growth brought the risk of costly investment.

How could this company move forward without experiencing a financial setback?

Before any capital investments were made, the company introduced the Production Preparation Process (3P) to define and simulate the production processes. By using 3P, the manufacturing facilities were able to investigate a range of areas impacted by the new product introduction–from tooling, fixtures and equipment to inventory, staffing and layouts.

The simulations revealed potential problem areas and opportunities for greater savings, resulting in a reduction of capital investment by more than 20% over the original plan.

Additional benefits included: improved productivity (meeting takt time and one-piece flow), increased responsiveness (with cells flexible to changes in demand) and reduced labor by 20-33% on each project.