IET, Inc.
3539 Glendale Ave
Toledo, Ohio 43614

Case Study 2-03284

Engineered tugger system design nets savings.

IET helped the customer implement a new five-alarm pull system to control inventory delivery from the point-of-use back to the receiving dock. IET’s solutions generated over $100,000 in inventory reductions in one product line alone.

The Customer

GM Powertrain, one of the world’s largest automotive suppliers, design and manufacture castings, engines and transmissions.

The Challenge

The tugger systems at one facility lacked standard operating procedures for point-of-use inventory, driver responsibilities, delivery routes and part replenishment rules. The facility had to improve inventory performance without adding resources.

The Solution

Combining detailed shop floor knowledge and analytical software tools, IET’s engineer designed and implemented several major improvements in the existing tugger systems:

  • Standard delivery routes with two to four hours supply of point-of-use inventory
  • Driver utilization 85% - 90%
  • Supermarket inventory not exceeding 1.5 days supply
  • Parts located in supermarket to minimize transport distance
  • Kanban controls on supermarket inventory
  • Overall inventory savings > $250,000

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