Page 26 - Case Study Annual 2015

was introduced and the parts were moved from the “After completion of the NLC project, logistics is
old system to the new system over weekends. On each
Monday morning the hybrid system had to be in place now enjoyable. Management of a complex and
ready to supply the parts to the production line.
very demanding process is made simple. The
The existing ordering system used to call parts
from the warehouse to the production line was based complex stuff happens automatically, operators’
on operators observing requirements at the assembly
line and placing orders through terminals on the shop tasks are simple and easy to measure, and
floor. This system and process combination would
not be able to support the increase in the number management only manages the exceptions.”
of orders to be placed daily. The manual ordering
process was also a first-use-then-replenish system Ian Curtain, manager, Plant Logistics, VWSA.
with severe limitations to support a rapid changing
vehicle production schedule. A new e-Kanban system Results
logic was developed and was introduced by making
significant changes to the systems used by VW to The project was implemented on time and with no
support logistics. This system was integrated into interruption to production and has yielded significant
the VW systems and could make use of the Bill of savings in both the assembly and logistics operations
Materials of each unique vehicle to order material through a process of continuous improvement between
on a know-what-I-need-when-and-order-before-I-need 2010 and 2015. A vast array of new lean logistics
basis. This system could support unlimited flexibility in concepts were introduced supported by new system
the vehicle production schedule. logic to enable VW to achieve the output volumes at
much higher levels of productivity and flexibility and to
In support of the parts ordering system, a cycle lay the foundation for continuous improvement.
based logistics management process was implemented
where every process is issued a new set of instructions All changes were done with the operator in mind
every 38 minutes (12 times a shift). The team can ensure – decision making is automated, and operators have a
smooth flow of materials and reliable just-in-time clear set of instructions with a standard amount of work
supply of all required materials by simply ensuring that to complete in each cycle. This has resulted in the work
all instructions are completed each cycle. being done with half the operators that would have
been required six years before.
The scope of the project implemented can be
summarised as: a complete Logistics DNA change: As a result of the success of the project, the
people, process, system, facility and management procedures and processes are being incorporated
model. into the Volkswagen Group’s Global Manufacturing
Template, and the Group is making favourable decisions
“That our logistics solution regarding future models for VWSA. •

gives us the freedom to

have no limits on what we

build and in what sequence,

gives us the edge when we

compete for new business

in the VW Group.” Clyde

Swartz, divisional head of

Logistics, VWSA.

24 the logistics news case study annual 2015