Background
Located in Jamshedpur, Jharkhand, this manufacturer specializes in producing cast aluminum alloy parts and accessories for automobiles and motorcycles, including hydraulic bodies, air cylinders, cylinder heads, and flanges. The company supplies to multiple locations of a German-based commercial vehicle controls system provider and performs machining processes for other customers as well.
Challenges
Inventory Management
The company faced significant challenges in tracking inventory levels of raw materials and finished goods across a diverse product range. This led to inaccurate procurement and production planning, causing inefficiencies.
Quality Control and Furnace Management
Managing four different furnace operations was done manually using Excel spreadsheets, resulting in inefficient furnace utilization and increased downtime.
Die Life Cycle Management
Quality inspections at various production stages were recorded manually, increasing the time taken and the risk of errors. Tracking the movement of semi-finished goods sent to subcontractors was cumbersome and error-prone. Additionally, creating die-loading plans based on weekly delivery schedules and ongoing production was difficult, leading to suboptimal machine utilization and challenges in identifying inefficiencies.
Production Costing
Manual processes and fragmented data, coupled with lack of real-time updates from work centers and subcontracting costs, made accurate determination of finished goods production costs difficult. Cost calculations were time-consuming and unreliable.
Solution
The company implemented an integrated manufacturing module with the following key features:
- Detailed Machine-wise Production and Die Planning: Enabled creation of precise production plans and die usage schedules, improving machine efficiency and manufacturing planning.
- Integrated Fixed Asset Management: This system recorded machines and dies, providing precise control over finished goods production. It generated die-utilization reports, enhancing die life-cycle management and reducing rejections and downtime.
- Automated Subcontracting Process Tracking: The system automatically created subcontracting orders during production planning, tracked material movement in and out, and calculated subcontracting costs based on receipts. This streamlined inventory tracking and ensured accurate costing.
Results
- Improved inventory accuracy and procurement planning.
- Enhanced furnace utilization, reducing downtime.
- More efficient and error-free die life-cycle management.
- Streamlined subcontracting operations with better material tracking.
- Accurate and timely production cost calculations.
- Overall improvement in machine utilization and production efficiency.