Decision Support Wins Visteon More Production for Less
The Problem
In 1996, Visteon Chassis Systems launched a new production line to manufacture front axles for popular four-wheel-drive trucks and sport utility vehicles. The demand was soon overwhelming – well beyond the company's planned production capacity within the first year. Every axle short of the demand represented the lost sale of a highly profitable F-series truck, Ford Expedition, or Lincoln Navigator. With increasing front axle productivity a critical priority, Visteon began investigating whether to expand the existing line or add a new line. Answering this question required analytics expertise in decision support systems.
The Analytics Solution
Visteon's analytics team developed a strategic decision support system (DSS) that integrated plant floor information systems and simulation for three related, mutually reinforcing purposes: productivity training, productivity improvement in operations, and design of new operations. A self-directed team on the plant production line then used the DSS to increase production of the needed front axles.
The Value
As a result of the new system, productivity improved by more than 30%, with the plant producing an additional 144,496 front axles between January 1997 and July 1998. The DSS was also instrumental in Visteon avoiding a $10 million modification on the line that would have been inefficient. Visteon used the DSS to design a new line with higher productivity – at $5.5 million in cost savings.
Said Visteon Vice President and General Manager Ray Schaffart, "Everything they were able to do actually helped us in the design of the next generation manufacturing system, saving $5.5 million in a cost of that installation along with avoiding $10 million in retrofitting the existing system. Very substantial savings and very positive impact for our customers."
Added Controller Mike Newbury, "Our customers are demanding never-ending improvement in quality, cost, and delivery performance. Without applying advanced OR/MS [analytics] technology to the manufacturing shop floor, we will never be able to be successful in this industry."
