Project Case Study: Husky Injection Molding Inventory Management
Maximize Customer Service Levels by Optimizing Inventory Management
In order to determine operational best practices for inventory management and lot sizes to maximize service levels to their customer, Husky Factory Planning approached Visual8 Corp. to develop a simulation model of its SP Berner’s plant in Valencia, Spain.
The model allows Husky to test and investigate the effects of different inventory and production lot sizes on efficiencies and demand, as well as facilitate the validation of operation parameters under future demand scenarios.
The simulation model incorporated the following features:
- The plastics shop, consisting of 75 injection molding machines
- Some assembly operations
- A secondary operation
Through a fully developed user interface, the simulation model allowed users to define various parameters such as:
- The molds, their properties in terms of cavitations, scrap rates, change times
- SKUs, their properties in terms of mold, colour, BOM, processing times at assembly, secondary operations and/or packaging
- The molding machines, their properties in terms of efficiencies, the type of machine, and reliabilities
- Customer demand in terms of a profile of requirements across the product lines
The model provided the user to run both a pull and push scenario as well as to modify the metrics within those options to evaluate the impact of different decisions. The results determined the required balance between inventory and machine throughput against customer service levels. Detailed output reports included:
- Service levels for all finished goods products
- Utilization percentages for all molding and secondary stations
- Inventory reports
The injection molding shop model enabled Husky Factory Planning team members to analyze the effect of various demand parameters and equipment specifications on inventory levels and customer service levels. The easy-to-use interface and user-friendly design enabled easy and quick “what-if” analysis.