Context and Challenges
In 2021, demand increased significantly, but the effects of the pandemic continued to affect supply chains. Delays in raw material supply required operational flexibility and real-time optimization.
Critical Operational Challenges
- ✕Frequent SMT line shutdowns due to missing components
- ✕Chaotic storage of components in the WIP area
- ✕Discrepancies between physical stock and SAP inventory
- ✕Human errors and lack of material need signaling system
Global Automotive Components Supplier
A global automotive components supplier faced frequent supply issues in the SMT production line, resulting in costly downtime and operational inefficiency.
Analysis of the Situation
Share IT Smart consultants and the client's team analyzed the situation using 5WHY and Fishbone methodologies, identifying the root causes:
Process Issues
- •Lack of a just-in-time supply flow
- •Reduced visibility of available components
- •Long time to search and identify components
Human Factors
- •Errors caused by monotonous processes and high workload
- •Lack of a digital system to assist operators in real time
Financial Impact
- •Significant losses caused by line stops
- •Quality defects due to incorrect mixing of components
- •High inventory costs and expired materials
Jidoka Kanban Solution
Share IT Smart developed and implemented an innovative digital solution to transform production line supply.
Solution Design
Creating a new just-in-time supply flow and developing the Jidoka Kanban digital application.
- •Create a new just-in-time supply flow to eliminate human error
- •Receive automatic signals directly from SMT equipment
- •Send notifications to warehouse for real-time replenishment and eliminate repetitive tasks while maintaining operator flexibility
Implementation of the Solution
Comprehensive deployment with user training and process optimization.
- •Comprehensive planning and training of users
- •Return excess material to warehouse to avoid accumulation in WIP area
Results and Impact
Material inventory reduction in WIP SMT area
Reduction in line shutdowns due to replenishment
Months to achieve ROI
Complete elimination of defects caused by missing or mixing components
50% reduction in operators required to feed the line
Transformation into paperless system through digitalization
Return on Investment achieved in less than 3 months
Solution Scalability and Future Development
The success of Jidoka Kanban enabled strategic expansion across operations.
System Extension
Extension of the Jidoka Kanban system to all production lines, standardizing efficiency across operations.
Integration with Dry Store
Integration with Dry Store for managing moisture-sensitive components, enhancing quality control.
Changeover Optimization
Optimization of production changes (changeover) to maintain optimal stock levels and minimize waste.
Strategic Success Factors
Intelligent Automation Impact
Proved that smart automation can radically transform operational efficiency while reducing costs
Elimination of Downtime
91.2% reduction in line shutdowns demonstrates the power of real-time automated replenishment
Inventory Optimization
57% reduction in WIP inventory freed up valuable space and reduced carrying costs
Rapid ROI Achievement
Less than 3 months to ROI proves the immediate value of intelligent process automation
Transform Your Production Line Efficiency
The implementation of the Jidoka Kanban solution has demonstrated that intelligent automation can radically transform operational efficiency, reducing costs and eliminating unplanned downtime.
If your company is facing challenges related to sourcing and production optimization, the Share IT Smart team can help you implement scalable, efficient and customized solutions.
