Material Handling Optimization -
The Eaton Cutler-Hammer facility
ABSTRACT:
The Eaton
Cutler-Hammer facility,
has two separate areas of
assembly. Eleven production lines compose the Load
Center Assembly Area while 17 production lines
compose the Metering/Meter Breaker/ACD Assembly
Area. Currently, 11 fork trucks are used in the
facility to bring parts from receiving to storage
where they can be picked up when needed by the
assembly lines. Fork trucks also take packaged goods
from finished assembly to shipping. Fork truck
drivers are often dedicated to one or two assembly
lines in an attempt to meet their every need and to
ensure that the assembly process does not incur
downtime.
This project’s goal,
was to evaluate the possibility of reducing fork
truck usage in the plant by cutting trucks from the
fleet, thereby reducing cost. The major areas for
improvement found within the plant include a
reduction in empty fork trucks, a decrease in time
spent searching for parts, and a reduction in
unnecessarily long travel times for drivers. Due to
a larger production volume and more total trucks,
the focus of the project centered on Load Center
Assembly’s six fork trucks. The analysis of the
current routing system identified changes that were
needed in the facility to improve fork truck driver
efficiency.
In order to do this,
new truck routes, storage options, and communication
technology were thoroughly investigated. After
detailed research and analysis, it was determined
that a reduction in fork trucks was possible if the
tasks were redistributed correctly. Also,
implementing racks in storage areas helps make the
drivers more efficient.
The recommendation of
redistributing tasks and implementing racks met the
2-year payback requested by Eaton Cutler-Hammer. In
order to reduce the usage of fork trucks, the least
utilized driver was removed. His tasks were
redistributed among the remaining five drivers.
CHALLENGE:
After a thorough analysis of the current fork truck usage and storage
systems at Eaton Cutler- Hammer, it was apparent
that there was room for improvement. With the number
of drivers differing between shifts and excess time
traveling with empty fork trucks, a reorganization
of drivers was necessary. The fork truck usage was
modeled and analyzed using
Simcad Pro
simulation software.
The information this
software offered on truck utilization and assembly
line downtime was helpful in identifying fork truck
inefficiencies and provided proof that it would be
feasible to eliminate a truck and redistribute its
tasks. Additionally, the storage inefficiencies were
noted during various plant trips as many drivers
were seen reorganizing large wire baskets in order
to reach the ones below. This reorganization process
took, on average, two minutes to complete. In order
to save time in storage, drivers must be able to
access any basket without any further reorganization
taking place.
The way to do this is
to implement racks so that any basket can be reached
without wasted time. By using the simulation, it
proved that the scenarios were successful when using
the racks. Although, racks vary greatly in cost,
Handling Innovations offers racks that meet the size
and weight specifications of the Eaton plant while
still meeting a two year payback when accompanied by
the reduction of one driver. A request for a
reduction in fork truck usage could be approached
from many directions.
First, in search of
eliminating all fork truck usage at Eaton, an
Automated Storage and Retrieval System would be
helpful. This would mean the entire fleet of trucks
would be replaced by the automated system. Also, if
Eaton were solely looking to increase the efficiency
of the drivers, Radio Frequency Identification and
communication devices provide viable options. These
allow for the most current information concerning
part locations and tasks to be available to the
drivers. However, the sponsor requested a reduction
in trucks that would meet a two year payback. These
options could not directly meet the sponsor’s
request so a redistribution of tasks was considered.
RESULTS:
Again using the simulation software, the
utilization of trucks and assembly line downtime
could be tracked in various scenarios. The most
reasonable scenario allowed for a reduction of one
driver from the Load Center Assembly Area. This
resulted in a gain of $39,954.69 in cash
flows per year with an initial, one time investment
of $41,724 for racks, giving a 13 month
payback on the investment. The utilization values
and assembly downtime measurements confirmed that
this task assignment was plausible.