Chrysler projected to save $5 million using SIMUL8

Line balancing to improve efficiency. The Throughput and Simulation team at Chrysler is on target to save $5 million using a Line Speed Reduction tool created using SIMUL8.


The Challenge

SIMUL8 was the perfect platform for Chrysler to test line improvement ideas in a fast, risk free environment.

The Chrysler Throughput team created a simulation of their assembly line operations. The simulation let them identify system bottlenecks, run different production schedules, and evaluate the impact of design and scheduling decisions, including buffering requirements and product mix.

"We wanted to look at the impact of slowing down the best performing lines as people on these lines were always waiting for work from slower lines in the process and that's just waste."

Steve Lin, Throughput and Simulation Specialist, Chrysler

The Result

Using SIMUL8 Lin and his team could identify the best performing lines, and experiment with slowing them down. The ability to quickly experiment with various scenarios without the risk and cost of testing those ideas on the actual lines was the key benefit of simulation.

Removed Waste

Lin and his team realized that a reduction in manpower on the slower lines would have no effect on overall throughput and remove waste on the line.

Confidence to Act

The simulation gave Chrysler the confidence that any changes put in place would have the desired impact.

The Line Speed Reduction tool the Throughput team developed has now been rolled out to 8 more Chrysler assembly plants with cost savings projected to be around $5 million.

Chrysler simulation screenshot

What's next for Chrysler?

SIMUL8 continues to be a highly effective tool for Chrysler. Lin and his team are now using SIMUL8 on other improvement projects including; the carrier number optimization for two other Chrysler assembly plants, and a project to determine the optimum number of lift-gate racks for a 10 model-mix body shop panel line.

"We reduced 2 people a shift on one line. So, with 3 shifts a day we effectively reduced manpower costs by 6 on that line, saving us $600,000 per year."

Steve Lin, Throughput and Simulation Specialist, Chrysler

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