Originally published by Quantzig: How Quantzig helped a leading machinery manufacturer improve their asset utilization through optimized production scheduling
Introduction:
In an era of technological evolution, Quantzig has played a pivotal role in transforming the manufacturing landscape for a leading industrial heavyweight. This case study delves into how Quantzig's advanced capacity planning strategies and production scheduling algorithms revitalized a major machinery manufacturer's operations, resulting in significant improvements in asset utilization, cost reduction, and overall efficiency.
Client Overview:
Our client, a prominent industrial manufacturer headquartered in the USA, faced a multitude of challenges stemming from a complex manufacturing process across multiple sites. With over 10 manufacturing sites and an extensive machine equipment inventory, the client grappled with underutilized assets, frequent breakdowns, and escalating maintenance costs. The absence of an optimal capacity planning solution hindered their ability to balance workloads, respond swiftly to market demands, and achieve seamless production.
Challenges:
The client's diverse product portfolio posed a unique challenge in demand aggregation and line planning. Manual processes, including sifting through order forms and spreadsheets, proved time-consuming and error-prone. Unplanned machine replacements and unexpected downtimes had already cost the client over $2 million, prompting them to seek an analytics partner to address these challenges. The pressing need for a solution that efficiently aggregated demand, optimized production lines, and prevented breakdowns drove the client to collaborate with Quantzig.
Solutions:
Quantzig's comprehensive solution focused on three key modules: demand forecasting, resource allocation, and performance monitoring. By accurately predicting demand, optimizing resource allocation, and implementing real-time performance monitoring, our solution empowered the client to make informed decisions and enhance production efficiency.
The capacity planning simulator, a cornerstone of Quantzig's solution, leveraged historical data, machine performance metrics, and other relevant factors to predict available capacity at the asset and technology level. By simulating various scenarios, considering factors such as machine downtime, maintenance schedules, and production constraints, the simulator provided dynamic insights into the client's capacity landscape.
Impact Delivered:
The implementation of Quantzig's solution resulted in a remarkable transformation for the client:
- 20% Reduction in Overhead Costs: Breakdowns were reduced, leading to a substantial decrease in overhead costs.
- 65% Reduction in Asset Overutilization: Striking a balance between underutilization and overload minimised breakdowns and ensured smoother operations.
- 34% Increase in Production Output: Optimized production schedules maximized asset utilization, minimized downtime, and reduced lead times.
Industry Overview:
The heavy machinery manufacturing industry in the USA is a critical contributor to the nation's economy, employing a substantial workforce and serving diverse domestic and international markets. Rapid technological advancements, including automation, robotics, and IoT, are shaping the industry's future. Capacity planning emerges as a crucial factor, allowing companies to optimize production schedules and meet market demand efficiently.
In conclusion, Quantzig's strategic capacity planning not only addressed the specific challenges faced by the client but also set a new standard for efficiency and productivity in the heavy machinery manufacturing sector. The collaboration showcases the transformative power of analytics in enhancing asset utilization, reducing costs, and driving overall operational excellence.
