Fiat Reduces WIP by 48% with Simulation

Fiat models their manufacturing systems to reduce work in process.

(Photo courtesy of Fiat.)

A. Hande Enez Industrial Engineer, TOFAS-Fiat, Turkey

As a result of the improvements the cost of material was reduced by the same amount. There was a 14% improvement The Problem by implementing only the scheduling The objective of the study was to rules. decrease excess WIP in the workshop. This study brings out the importance System analysis was used in order to of one piece flow rather than producing detect the most important reasons of in batch and bearing the cost of exess excess WIP. These can be summarized Minimizing WIP forces recognition WIP. Minimizing WIP forces as follows: recognition of all waste and abnorof all waste and abnormalities in malities in the system because excess large lot sizes long set-up times the system because WIP hides the WIP hides the non-value-adding long lead times activities. It also facilitates quality non-value-added activities. ineffective production scheduling control by making the full process observable. breakdowns of machines non-value-adding activities of reduction through waste elimination Communication was improved both operators machine-operator assignments done among the operators and between operators and their leaders. This improveaccording to priority of jobs ment was a result of them discussing the The Solution increasing the number of multiFirst, a model of the actual system was process material handling operators results or their suggestions. constructed. The reasons for excess WIP The next step is to increase the usage in the workshop were analyzed and The technological recommendations of the simulation tool in productivity improvement studies. Currently, two identified. Then the model was verified included: additional projects have been started at and validated. After that, the problem reduction of set up times TOFAS-Fiat. q solving approach was developed. By methodical improvements testing the results of changes on variables, automation of machines where the minimum stock level was reached. possible ProModel was used for gaining an layout optimization FIND OUT MORE insight into the relationships among the preventative and productive different variables. Running experiments maintenance About the Author: A. Hande Enez, of the scenarios helped to set the rules an industrial engineer, works in the for the production system to improve The Results Production Resources Analysis Departproductivity. Therefore, an insight was As a result of the modeling effort, ment at TOFAS-Fiat in Turkey. gained for understanding the relationships there was a 48% reduction on the average Contact: If you have any questions between WIP and the others such as lead WIP in the workshop. The majority of about ProModel software, please contact times of pieces, lot sizes and set up times. this improvement was gained from the ProModel team at 1-888-776-6633. By keeping the technological constraints applying scheduling rules, and the rest constant, the most important tool for was gained with technological improveSimulation Success is a promotional publication of PROMODEL increasing the productivity of the shop ments. Corportation. Copyright 1997, all rights reserved.
APRIL 1997 SIMULATION SUCCESS

n real life, it is too difficult to manipulate the manufacturing system according to different production strategies. Simulation was used for this study because it was the most suitable tool to help understand the causes of changes in systems variables on the Work In Process. The purpose was to understand the behavior of the system and evaluate various strategies to reduce WIP.

floor comes out of setting rules for production. The proposal for decreasing WIP are divided into two groups: Scheduling Technological The scheduling recommendations included: creating lot sizing methods material pulling to the system (the number of pieces going into the systems should be equal to the required number of output) lead time monitoring and lead time

In the study, the most important results of the project were: cost reduction in WIP reduction of lead times better quality monitoring space reduction better scheduling rules

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