Operations Redesign Impact


Customer Profile

  • Consumer Goods Manufacturing production and distribution complex with on-site switching and shuttling between production complex, DCs, and yards.
  • Customer is considering a major re-design of the entire complex that will change the flow of materials and finished product within the complex.
  • Current operations call for 3 shifts with 34 drivers
  • Customer required an estimate of any cost savings that would be achieved in yard operations if the new design were implemented.

Solutions

  • Worked with customer to understand the basic flow of the new design.
  • Because the changes were large and spread over a period of years, an iterative "What If" model was created that achieved the following:
    • Dynamically recalculated cost savings based on changing design parameters
    • Functioned as a collaborative working tool for the customer and the yard provider
    • Automated easy-to-use model with only 2 user input fields
Value Lane Reductions Lane Replacements Combined Impact Net Lane Changes
Avg Move Time Total Moves Current Total Move Time % Move Reduct. Estimated Reduced Moves Estimated Time Reduct. (Min.) Net Move Time Hours Annualized Net Move Time Hours FTE Count Move Time Reduct. Time Reduct. due to Move New Move Time New Replace. Moves Estimated Time Reductions due to New Future Move Time (Min.) Future Moves Future Estimated Time (Min.) Net Move Time (Min.) Net Move Time Hours Annual Net Move Time Hours FTE Count
8.25 7,764 64,084 5% 388 3204.19 53.40 80.10 0.04 0.00 0.00 0 0.00 8.25 7,376 60,879.66 0.00 0.00 0.00 0.00
11.97 2,391 28,614 -5% (120) (1430.71) (23.85) (35.77) (0.02) 0.00 0.00 0 0.00 11.97 2,511 30,044.86 0.00 0.00 0.00 0.00
12.58 3,971 49,935 98% 3892 48936.62 815.61 1,223.42 0.56 0.00 0.00 0 0.00 12.58 79 998.71 0.00 0.00 0.00 0.00
8.26 299 2,469 98% 293 2419.67 40.33 60.49 0.03 0.00 0.00 0 0.00 8.26 6 49.38 0.00 0.00 0.00 0.00
14.00 5,243 73,387 50% 2622 36693.49 611.56 917.34 0.42 6.00 31,442.98 8.0 2,622 20,972.00 8.00 2,622 20,972.00 20,972.00 349.53 524.30 0.24
12.65 2,964 37,502 45% 1334 16875.80 281.26 421.89 0.19 6.65 19,717.77 6.0 1,630 9,781.20 6.00 1,630 9,781.20 9,781.20 163.02 244.53 0.11
9.81 1,264 12,394 45% 569 5577.18 92.95 139.43 0.06 0.00 0.00 0 0.00 9.81 695 6,816.56 0.00 0.00 0.00 0.00
7.99 306 2,445 0% 0 0.00 0.00 0.00 0.00 0.00 0.00 0 0.00 7.99 306 2,445.22 0.00 0.00 0.00 0.00

Value Delivered to the Customer

Arrow Up Estimated Driver Count: 34 to 24
Arrow Up Estimated Variable Cost Savings: $324, 399
Arrow Up Estimated Fixed Cost Savings: $78, 432