Simulation designs Rover's inbound supply chain
Computer modeling in 3-D maximizes how an inbound logistics center stages, delivers parts to the automaker's assembly line.
By Staff -- Modern Materials Handling, 1/1/1999
Proud owners of Rover Group's auto models can expect to pick up their new vehicles earlier as a result of a new, world class supply chain management system. Now in place at the U.K. automaker's Oxford plant, this system supports a more efficient, streamlined supply of inbound components to build these autos.Rover was determined to achieve shorter lead times between placing an order for a new car and delivering it to a dealer. To reach this goal, Rover Group worked with Exel Logistics to devise the new supply system. It integrates all inbound parts operations together under one roof.
Leigh Pomlett, managing director of Exel Logistics Automotive, explains the thinking behind the development of the new system: "The greater volume and complexity of build variations on the new Rover model mean that bringing components into a number of receiving points-and then handling them in the conventional manner-was no longer good enough."
Simulation by computer of the features needed for more efficient inbound logistics was tried with great success and figured prominently in final design of a supply chain system. Details of the system were refined with the support of a highly advanced, 3-D simulation model created jointly with AutoLogic Systems, a U.K. distributor, using AutoMod software. (AutoSimulations developed the software for U.S. users; call 801-298-1398.)
Creating a 'supplier village'
What's changed with the new, computer-modeled approach? Consolidation of logistics operations. Standardization on suppliers' containers holding components needed in auto assembly. And improved materials handling procedures.
Five separate logistics buildings once provided Rover with storage and staging capability for components necessary for auto assembly at the plant. In their place now stands a new, revolutionary Integrated Logistics Centre (ILC) built for nearly $17 million.
The ILC initially services the production of the Rover 75 model. Here, Exel Logistics receives, configures, and dispatches-in correct sequence-the inbound components going to each of 140 build stations in Rover's brand new assembly building.
Through a single distribution point, the ILC fosters a "supplier village" concept for sequenced components (see sidebar). The ILC also includes conventional handling of other components within a new, 22,000 sq meter building manned by more than 200 Exel Logistics staff members.
The solution to improved supply chain management includes the development of a standard range of containers which are used by all UK and European auto industry suppliers. As far as the UK suppliers are concerned, these containers now travel directly from the supplier into the ILC for consolidation and then to assembly line fit points, rotating on a six-day loop.
Electric tow trains (photo) feed the assembly line with components via a connecting tunnel from the ILC, and empty containers are collected and returned to the facility. For most inbound materials, the cycle time from point of call to fit point on the line is reduced from the current four hours by road to one hour.
This shorter delivery time not only increases efficiency and contributes to a cleaner environment, but has the added bonus of improved traffic flow around the plant. The system significantly decreases vehicle movements-cutting trips by up to 300 a day-compared with the conventional over-the-road delivery solution.
Simulation's key role
The ILC represents an innovative step change for inbound logistics processes for the UK motor industry. Facing system designers was this challenge: Define a fully integrated solution which would effectively support quality car manufacture on a fast, flexible, and reliable basis.
Working in such an innovative environment raised many questions, in answer to which, those involved had few benchmarks or proven statistics to draw on. Working with traditional design methodologies, reliable testing would only have been possible at a late stage of development when revising the plans or making corrections would be very expensive and dramatically impact the ability to complete the project on schedule.
Andrew Leahy, general manager for Exel Logistics, was responsible for the decision to use simulation and then the selection of the AutoMod system.
"We believed," says Leahy, "that the use of a 3-D simulation model would allow us to replicate exactly the layout and workflow of the center, testing its performance under changing resource, constraint, and volume conditions."
This capability, he continues, "would enable us to select the optimal combination of resources to achieve and maintain the overall on-going performance levels that we had targeted. We could do so far earlier in the design process and with a level of confidence in the material flows being proposed."
Colin Bristow, who led the modeling for Rover Oxford Logistics, explains that "what the modeling process also required from us was the generation of an unprecedented level of detailed data to forecast a typical week's build, in order to produce an accurate demand profile for input to the model. Without that detail, the simulation outputs would not have given us the same level of confidence. The commitment of the team in producing this data was vital to the project."
The system was modeled largely before any physical construction was undertaken or equipment orders placed. This approach produced associated time and cost savings.
"The first task was to set out the objectives for the ILC model," says Graham Carter, AutoLogic Systems' joint managing director. "Initially there were several key objectives on which to focus:"
- Building a complete warehouse, assembly hall, and tow train model to enable simulation of the entire logistics operation.
- Evaluating fit point delivery zones for tow trains.
- Identifying congestion points.
- Evaluating inbound vehicle marshalling.
- Establishing materials handling equipment requirements and human resources for zero service level loss -i.e., to meet the lineside delivery times required.
- Determining storage capacity required at fit point locations.
- Ensuring that the system as simulated would work.
The size and complexity of such a model was recognized from the start. But it was agreed that to be of real benefit to Rover/Exel, the model had to include:
- True scale accurate modeling of all material movements from within the ILC to line-side fit points by tow train.
- Inclusion of 400 pickup/drop locations in 40,000 sq meters of the vehicle assembly building.
- Detailed modeling of tow trains including pick-up times, incline speeds, accelerations, etc.
- Different handling for each type of material-metals, plastics, sequenced materials.
Following the building of the model, validation was undertaken with Rover/Exel to ensure the modeling was accurate. The model was used to establish a wealth of specifications, statistics, and performance results, including:
- Service level capability
- Materials handling equipment requirements and utilization
- Fitpoint delivery zone analysis, including: (a) Transit times per zone; (b) Service level lost per zone; and (c) Trips per zone
- Line side storage used by fit point, with minimum, maximum, and average containers stored.
The entire project was driven by a single over-riding demand to consistently meet a seven-day delivery period under full operating conditions.
More than a supplier village
Rover/Exel's Integrated Logistics Centre (ILC) is a supplier village-and more-explains Andrew Leahy, general manager, for Exel.
"The term supplier village is more commonly associated with higher volume operations, such as Exel's inbound logistics operations for VW Beetle in Mexico," he points out. At VW an industrial park is in close proximity to the auto manufacturer's plant; within the park are a number of supplier-dedicated warehousing operations.
These operations sequence or subassemble auto components for delivery into production, he adds. As practiced by Exel, the main features of the supplier village concept include:
- Common information systems (provided by Exel);
- Shared deliveries inbound to the village;
- Shared resources and combined delivery to production by Exel, with pooled labor and handling equipment;
- Overhead reduction through a single, Exel management team.
"The ILC does incorporate a number of suppliers into one place with the synergy benefits that result," says Leahy. But the ILC also performs conventional handling activities-for example, moving entire metal or plastic containers of parts in and empty containers out of the center, in addition to sequencing individual parts.
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