Scribd Logo
Upload

Welcome to Scribd!

  • 99 views

    AAL-Meritor Operations Case Study For Naissance 2012

    Uploaded by

    Gaurav Gupta
    The document provides information about a company that produces automotive axles and experiences high scheduling fluctuations from original equipment manufacturer (OEM) customers. It discusses the company's structure and product portfolio. It also describes the complex scheduling environment in the medium and heavy commercial vehicle industry, showing how the company receives multiple schedule revisions from OEMs each month. This disturbs both internal and external supply chains. The document seeks recommendations on how to handle scheduling variations and determine revised commitments, as well as how to schedule the whole supply chain to facilitate on-time delivery and reduce lead times.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    AAL-Meritor Operations Case Study For Naissance 2012

    Uploaded by

    Gaurav Gupta
    99 views11 pages
    The document provides information about a company that produces automotive axles and experiences high scheduling fluctuations from original equipment manufacturer (OEM) customers. It discusses the company's structure and product portfolio. It also describes the complex scheduling environment in the medium and heavy commercial vehicle industry, showing how the company receives multiple schedule revisions from OEMs each month. This disturbs both internal and external supply chains. The document seeks recommendations on how to handle scheduling variations and determine revised commitments, as well as how to schedule the whole supply chain to facilitate on-time delivery and reduce lead times.

    Original Title

    AAL-Meritor Operations Case Study for Naissance 2012

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides information about a company that produces automotive axles and experiences high scheduling fluctuations from original equipment manufacturer (OEM) customers. It discusses the company's structure and product portfolio. It also describes the complex scheduling environment in the medium and heavy commercial vehicle industry, showing how the company receives multiple schedule revisions from OEMs each month. This disturbs both internal and external supply chains. The document seeks recommendations on how to handle scheduling variations and determine revised commitments, as well as how to schedule the whole supply chain to facilitate on-time delivery and reduce lead times.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    99 views11 pages

    AAL-Meritor Operations Case Study For Naissance 2012

    Uploaded by

    Gaurav Gupta
    The document provides information about a company that produces automotive axles and experiences high scheduling fluctuations from original equipment manufacturer (OEM) customers. It discusses the company's structure and product portfolio. It also describes the complex scheduling environment in the medium and heavy commercial vehicle industry, showing how the company receives multiple schedule revisions from OEMs each month. This disturbs both internal and external supply chains. The document seeks recommendations on how to handle scheduling variations and determine revised commitments, as well as how to schedule the whole supply chain to facilitate on-time delivery and reduce lead times.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 11

    COMPLEX PROBLEMS SIMPLE SOLUTIONS

    Aspire, Apply & Lead

    Introduction

    200 Mil USD

    2.5 Billion USD


    Aspire, Apply & Lead

    4 Billion USD

    Introduction: Company Structure & Responsibilities


    Automotive Axle Limited Holding: Listed: ARM 35.5% | Kalyani 35.5% | Public 29% Operation Start date: July 1984 Responsibilities: Value Addition Quality Assurance Material Procurement Delivery Production | Planning | Purchase | Quality | Delivery Meritor HVS (India) Limited Holding: Non Listed: ARM 51% : Kalyani 49% Operation Start date: April 1999 Responsibilities: Technology Management Customer Interface Product Support Design | Testing | Engineering | Marketing | Service | AfterMarket
    Aspire, Apply & Lead

    Introduction: MHVSIL-Products
    Drive Axle LCV Application M & HCV Application Defence Application

    Specialty (Front Steer Axle): Low Floor Bus Application High End Coach Application

    Drive Heads: LCV Application

    Brakes Drums - M & HCV application Discs Coach & Truck Application Aftermarket: Gears, Drive heads, Brakes

    Aspire, Apply & Lead

    Medium and Heavy Commercial Vehicles industry


    All commercial vehicles with a tonnage more than 7.5 tons are categorized as Medium and Heavy commercial vehicles (M&HCV) In the Indian M&HCV industry the schedule for components released by Original Equipment Manufacturers (OEMs) to Tier-1 suppliers are heavily influenced by two important factors:
    1. 2. Off take of stock by dealers and Rate of supply or schedule adherence by the Tier-1 suppliers

    The schedule released by OEMs to tier-1 suppliers will ask for quantities which are more than their actual need. This is to ensure that, Tier-1 suppliers agree to meet minimum commitments. As soon as they find that the supply from Tier-1 suppliers is smooth and meeting the schedules, they will cut the requirement in the subsequent revised schedule. Also depending on the off take by dealers, OEMs will change their production schedules The effect is that Tier-1 suppliers end up receiving at least three to four revisions of schedule from OEMs within a month

    Aspire, Apply & Lead

    Scheduling in M&HCV industry These two factors result in high schedule fluctuations for the Tier-1 suppliers Automotive Axles Ltd. being a Tier-1 supplier of Axle Assemblies to all the Major M&HCV manufacturers, experience at least four to five schedule changes from the OEM customers within a month This disturbs the whole supply chain both internal and external Typically the first revision of the schedule for a month is received by 20th of the previous month, which is the basis for running MRP for the month for Automotive axles Based on the MRP, Supplier schedules to Automotive Axles Ltd. suppliers are sent and internal manufacturing orders are released

    Aspire, Apply & Lead

    Scheduling in M&HCV industry contd


    For the month of Dec11, Automotive Axles Ltd. received five revisions of demand schedules which is shown below. The first revision was received on 21st Nov11, the 2nd was on 23rd Nov11, 3rd on 29th Nov11, 4th on 7th Dec11 and the final on 21st Dec12 Automotive axles Ltd. sends its weekly commitment for the whole month to OEMs. The commitment sent as of 1st week of Dec11 is as below The Table below shows the schedule for eight varieties of Axles As the monthly schedule is revised by OEMs, the weekly commitments to OEMs have to be revised This in turn leads to changing the schedule for all suppliers and for internal manufacturing or internal capacity allocation
    Commitment as on 2nd of Dec'11 3 days Dec'11 Reqmt For MRP Dt 21.11.11 Dec'11 Reqmt O/B 121 Dt 23.11.11 Dec'11 Reqmt Rev:01 Dt 29.11.11 Dec'11 Reqmt O/B # 123 07.12.11 6 days 6 days 6 days 6 days

    Axle part no.

    Customer

    Dec'11 Reqmt wk-2 (5- wk-3 (12- up to wk-3 wk-4 (19- wk-5 (26wk-1 (1-3) Rev:03 Dt 10) 17) commit 24) 31) 21.12.11

    CTTP160 R1495 STD R1495-01 R1495-02 R1495 L Stallion R145 R1497

    Largest customer 2nd Largest customer Small volume customer Small volume customer 2nd Largest customer Largest customer Largest customer Largest customer

    220 150 900 0 18 50 200 180

    220 150 900 100 36 60 200 180

    60 350 500 0 80 60 380 110

    0 600 250 100 80 24 350 200

    0 600 250 0 80 100 350 200

    20 40 0

    180 0 18 70 60

    30

    40 70 0 24 18 0 90 80

    60 290 0 24 36 0 190 140

    0 150 0 36 22 60 80 60

    160 0 36 40 80

    Aspire, Apply & Lead

    Axle assembly BOM


    The BOM of each Axle assembly consists of the following major components:
    Housings
    2 Nos. Housing halves

    Drive gear
    Drive gear hard
    Drive Gear soft

    Drive pinion
    Drive pinion hard
    Drive pinion soft

    Axle Shafts Bearings Companion Flange

    The Quantity per Axle is as below


    SKU Housing Half (HH) Drive Gear Drive Pinion Axle Shafts Bearings Companion flange Unit per Axle 2 2HH = 1 Housing 1 1 2 5 1

    Aspire, Apply & Lead

    SKU Opening Balance


    Part No. for SKUs
    Axle Part No.
    CTTP160 R1495 STD R1495-01 R1495-02 R1495 L Stallion R145 R1497

    SKUs Part Nos. Housing Half Drive Gear Drive Pinion Axle Shafts HH1 DG1 DP1 AS1 HH2 DG2 DP2 AS2 HH3 DG3 DP3 AS3 HH4 DG4 DP4 AS4 HH5 DG5 DP5 AS5 HH6 DG6 DP6 AS6 HH7 DG7 DP7 AS7 HH8 DG8 DP8 AS8

    Bearings BG1 BG2 BG3 BG4 BG5 BG6 BG7 BG8

    Companion flange CF1 CF2 CF3 CF4 CF5 CF6 CF7 CF8

    Opening balance for Dec11


    Opening Balance
    Axle Part No.
    CTTP160 R1495 STD R1495-01 R1495-02 R1495 L Stallion R145 R1497

    SKUs Part Nos. Housing Half Drive Gear Drive Pinion 176 88 88 120 60 60 720 360 360 0 0 0 14 7 7 40 20 20 160 80 80 144 72 72 Axle Shafts 176 120 720 0 14 40 160 144 Bearings 440 300 1800 0 36 100 400 360 Companion flange 88 60 360 0 7 20 80 72

    Aspire, Apply & Lead

    Routing with Capacity, Lead time, Batch size and Setup time
    Legend:

    Capacity per day Lead time in days Batch size in Nos. Setup time in hours 1 month = 25 days
    Gear Steel Supplier Capacity: NA Leadtime: 45 Batch size: 200 Setup time: NA
    Pinion Steel Supplier Capacity: NA Leadtime: 45 Batch size: 200 Setup time: NA

    HH Steel Supplier Capacity: NA Leadtime: 45 Batch size: 200 Setup time: NA

    HH Supplier Capacity: 400 Leadtime: 15 Batch size: 200 Setup time: NA

    Housing line Capacity: 66 Leadtime: 0.33 Batch size: 30 Setup time: 2

    Gear Forging Capacity: 200 Leadtime: 7 Batch size: 100 Setup time: NA
    Pinion Forging Capacity: 200 Leadtime: 7 Batch size: 100 Setup time: NA

    Inward Store Capacity: NA Leadtime: 1 Batch size: NA Setup time: NA


    Inward Store Capacity: NA Leadtime: 1 Batch size: NA Setup time: NA

    Gear Blanking Capacity: 200 Leadtime: 1 Batch size: 100 Setup time: NA
    Pinion Blanking Capacity: 200 Leadtime: 1 Batch size: 100 Setup time: NA

    Gear Soft Capacity: 75 Leadtime: 0.08 Batch size: 50 Setup time: 2


    Pinion Soft Capacity: 75 Leadtime: 0.08 Batch size: 50 Setup time: 2

    Heat Treatment Capacity: 80 Leadtime: 1.5 Batch size: 50 Setup time: NA


    Heat Treatment Capacity: 80 Leadtime: 1.5 Batch size: 50 Setup time: NA

    Gear Hard Capacity: 75 Leadtime: 0.08 Batch size: 50 Setup time: 2


    Pinion Hard Capacity: 75 Leadtime: 0.08 Batch size: 50 Setup time: 2
    Drive Head Assembly Capacity: 80 Leadtime: 0.02 Batch size: NA Setup time: NA

    NX Assembly Capacity: 80 Leadtime: 0.02 Batch size: NA Setup time: NA

    Legend: External Supplier or Outsourced


    Companion Flange Supplier

    Bearings Supplier Capacity: NA Leadtime: 90 Batch size: NA Setup time: NA Axle Shaft Supplier Capacity: 110 Leadtime: 7 Batch size: 200 Setup time: NA

    Hydraulic press

    NA = Not Applicable

    Bearings Supplier
    Capacity: 80 Leadtime: 5 Batch size: 100 Setup time: NA Capacity: 100 Leadtime: NA Batch size: 50 Setup time: 0.5

    Capacity: NA Leadtime: 90 Batch size: NA Setup time: NA

    Aspire, Apply & Lead

    10

    Expectations

    How to handle the variation in schedule?


    How to arrive at the revised weekly commitments ?

    What is the frame work for scheduling to take care of all the variations? How much qty. of each of the SKUs should be held and at which level/locations to facilitate schedule achievement and reduce lead time? Arrive at the schedules for the whole supply chain (internal as well as external) Explain the logic Is there any debottlenecking required?
    Concepts will be appreciated more than numerical calculations

    Aspire, Apply & Lead

    11

    You might also like