Implementation of Continuous Flow in the Cabinet Process at the Schneider Electric Plant in Tlaxcala, Mexico

Diana Sánchez-Partida (), Rodolfo Rodríguez-Méndez (), José Luis Martínez-Flores () and Santiago-Omar Caballero-Morales ()
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Diana Sánchez-Partida: Department of Logistics and Supply Chain Management, Universidad Popular Autónoma del Estado de Puebla, 72410 Puebla, México
Rodolfo Rodríguez-Méndez: Department of Logistics and Supply Chain Management, Universidad Popular Autónoma del Estado de Puebla, 72410 Puebla, México
José Luis Martínez-Flores: Department of Logistics and Supply Chain Management, Universidad Popular Autónoma del Estado de Puebla, 72410 Puebla, México
Santiago-Omar Caballero-Morales: Department of Logistics and Supply Chain Management, Universidad Popular Autónoma del Estado de Puebla, 72410 Puebla, México

Interfaces, 2018, vol. 48, issue 6, 566-577

Abstract: This work presents the development and improvements obtained by the implementation of continuous flow in the cabinet process at Schneider Electric’s manufacturing plant in Tlaxcala, Mexico. The areas involved were the demand-planning, materials-planning, and manufacturing processes and warehouse operations. The implementation process, which consisted of shared planning, analysis of control operations, and synchronization of lean manufacturing techniques, led to increased communication among personnel within departments at the Schneider Tlaxcala plant (STP). In addition, this implementation produced the following benefits: (1) improvement of demand coverage in high-demand seasons without exceeding the production capacity, (2) reduction of shortages and delays in the assembly line with associated savings of approximately $3.5 million, (3) reduction of 17.5% in the overproduction of stamped parts and thus on the daily holding inventory, (4) setup time reduction of 77%, and (5) elimination of product flow between the cabinet process and the warehouse to reduce delivery lead time to the assembly line. The fifth benefit was made possible because STP was able to supply the cabinets directly to the assembly line in two days. As a result, the company released 49 storage spaces and improved its customer service by 5% because it could make the final products available to customers at the appropriate time (i.e., on schedule). After 24 months, these improvements led to total recurring savings of approximately $1 million considering an investment of 1.25%. In addition, Schneider Electric was able to successfully replicate this methodology in similar manufacturing plants in North America.

Keywords: lean manufacturing techniques; forecasting; aggregate planning; inventory levels; storage location; integral decisions (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:48:y:2018:i:6:p:566-577

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