Just in time Just in sequence
Modine delivers in sequence engine-cooling units for individual Jeep Liberty models within 5 hours of receiving the order.
By Tom Feare, Editor At Large -- Modern Materials Handling, 4/1/2003
Manufacturing to a just-in-sequence shipping schedule is a juggling act, a really complex one. And it's more complicated than simpler, just-in-time practices. Just ask the executives at Modine Manufacturing Company who oversee its Toledo, Ohio assembly plant.
Their facility produces engine-cooling modules for DaimlerChrysler's Jeep Liberty vehicle assembly plant, also in Toledo. Modine supplies modules in response to live line broadcast orders.
Every 72 seconds a broadcast signal goes out in real time to Modine. That signal is sent just as the next, work-in-process Jeep Liberty emerges from the paint shop, ready to move further through assembly. The signal determines the next cooling module required for delivery in sequence within 5 hours to the assembly line.
Materials handling-particularly an automated storage and retrieval system (AS/RS)-plays a key role in Modine's ability to juggle orders for its different finished products and deliver them in just-in-sequence order, or JIS, as well as just-in-time. The AS/RS functions as the sequencer that makes it all possible.
Simple, but custom-engineered, assembly automation-fool-proofed with many checks, tests, and go or no-gosteps built into producing modules-also aids in reaching JIS performance, says Lyman Tschanz, general manager for Modine's automotive division. But what's innovative, what makes it all work nearly flawlessly Tschanz says, is a very high level of integration and reliance upon electronic data interchange (EDI) that extends across the entire supply chain.
All in all, 'it's a very complex integration of subsystems that must run in a highly reliable way to support the assembly and supply solution,' Tschanz says. 'We have to respond quickly, accurately. We can't blink.'
Meshing closely together, subsystems ensure that the Modine plant ships out only high-quality products, always in proper sequence, and virtually free of errors. That's what the plant's one and only customer, DaimlerChrysler's Toledo North Assembly Plant (TNAP), demands. And what it got in 2002.
For all of last year-with the hundreds of thousands of Jeep Liberty vehicles produced at TNAP-not one order for Modine's modules ever shipped out of sequence. Deliveries were 100% on time. Modine's plant racked up just a 12 parts-per-million reject rate for cooling modules delivered to TNAP. That rate amounts to just two rejects for more than 200,000 units shipped. 'That's near perfect,' says Tschanz. Equipment and system uptime has been at a 99.5% rate.
Keeping up the fast paceTNAP assembles the popular Jeep Liberty at a pace close to 1,000 vehicles a day. Just five miles away stands the greenfield, multimillion dollar plant where Modine assembles and provides engine powertrain cooling modules.
This JIS performance of Modine's Toledo facility puts it in a very select group. While just-in-time is widely used in the auto industry, only a small group of manufacturers also supply a variety of parts sequentially to assembly lines and succeed at it.
If Modine's performance were for the movies and the Academy Awards, an Oscar would be in order. Instead, Modine has won the equivalent in its business. In January the Toledo plant received the Jeep plant's SPD (sequential part delivery) Supplier of the Year award for 2002. The honor comes after Modine received similar quarterly kudos for top supplier.
Benchmarking and BMWAs DaimlerChrysler planned for its TNAP facility in the late 1990s, the automaker decided not to perform sub-assembly of engine-cooling modules within its own plant, explains Matt McBurney, Modine program manager. Instead, the automaker contracted for its supply of fully assembled modules, ready for installation, with Modine.
Ten different types of modules are required. All include a radiator as well as other components depending on options of the specific Jeep Liberty it is to be installed in (engine size, manual or automatic transmission, AC or not, and the like).
Planning for production of modules for Jeep Liberty 'did not start out as a just-in-sequence operation,' says McBurney. But it evolved that way as DaimlerChrysler developed TNAP. Modine 'benchmarked with its Wackersdorf, Germany plant,' he adds. This German facility supplies engine-cooling modules sequentially to BMW's plant for its 3 Series line. Wackersdorf relies upon an AS/RS for sequencing and storage.
Working with a U.S.-based systems integrator for materials handling projects, Modine looked at various scenarios for its Toledo plant. Computer simulations eventually led to the choice of a two-aisle, unit-load AS/RS as the sequencing subsystem. Powered roller conveyor integrates workstations, the AS/RS, and final shipping. The current system 'looks very much like what was simulated,' he adds.
Two storage/retrieval (S/R) machines stock the AS/RS for staging or pick from it for shipping, explains Ed Wawrzynski, Toledo plant manager. While the system stores only one module on an assembly pallet, it stores all pallets double deep, to maximize density.
To stage modules, the S/R machine puts away one assembly pallet at a time. To pick, the S/R machine pulls one module on its pallet at a time. As many as 2,160 cooling modules can be staged in the AS/RS.
Even with the AS/RS filled to capacity, that's only about a two-day's supply for TNAP. Yet the AS/RS provides an insurance policy against any possible disruptions of supply, such as power outages, software difficulties, and assembly line issues.
The system also enables Modine to decouple module assembly from shipping. It helps maintain inventory in real-time and at lean levels, adds Wawrzynski. Inventory that was previously spread throughout the supply base is now focused in the AS/RS, leading to leaner inventory levels and better inventory control.
Assembly with many safeguardsCooling modules aren't built from scratch. Instead, they are made in several steps from subassemblies and components brought in from sources in the supply chain. In some cases, another unit of Modine in McHenry, Ill. provides subassemblies for modules.
Pulling all these parts together in a timely way means heavy reliance upon Modine's customized systems for materials resource planning and modular assembly control. There is a very high degree of system integration with EDI messaging for both intra-company shipments and for supplies from outside sources. In many instances these supplies arrive at the Modine Toledo plant's receiving docks (see layout below) in returnable containers.
Assembly of modules begins after a radiator passes leak testing. The radiator is placed on an assembly pallet. Each piece of work-in-process (WIP) is bar code labeled at this point.
Assembly steps have multiple fool-proofing measures built into them. At a workstation, a terminal display instructs the operator with details on the assembly of the specific work piece. In certain operations, a pick-to-light system ensures proper part selection. Pick the wrong part, for example, and a torque wrench won't energize, says Wawrzynski. And, whenever any physical adjustment is made to a WIP piece, such as applying torque to a connection, 'we do a test or check,' adds McBurney, to verify that step was done correctly.
After a finished module is pulled from the AS/RS to fill an order and sent to the shipping pick point, the module is again bar coded. A second bar code label is applied with the specific VIN (vehicle identification number) for the specific Jeep Liberty in which the module will be installed. This labeling step saves time for TNAP, points out Wawrzynski.
The two processes of assembly and shipping 'are highly error-proofed,' as Wawrzynski says. But should any quality issues ever arise over a specific module, 'the system has real-time tracking capability and traceability by work number, VIN number, or sequence number which can be really beneficial,' he adds.
Gradually, automakers as well as other original equipment
manufacturing customers will likely request additional JIS supply support in
future years. Modine definitely plans to be in this vanguard, says Tschanz.
Indeed, Modine is adding to its existing JIS capacity in Wackersdorf, Germany.
The extra capacity due in 2004 will serve BMW production for the 1 Series and 3
Series vehicles.
Click on the icon to read how DaimlerChrysler operates its Jeep Liberty
plant with sequential deliveries and automated handling systems.
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