The automotive industry appears to be rebounding at a faster rate than most (if not all) experts may have anticipated. Many OEM’s and their suppliers are attempting to boost production to replenish inventories and support renewed demand for their products. Reduced inventories throughout the supply chain are creating demand that is difficult to replenish at the rate required. Short runs to bootstrap the “pipeline” are taking their toll on OEE rates but also provide the opportunity to identify new improvement initiatives.
General Motors and Toyota have both announced that increased demand for their product is anticipated for the next few months. The increases are exciting for all involved, however, the ramp up to recovery may be more painful to achieve for some. How is your company performing? Those with fixed “cells” or processes may not be experiencing the same degree of frustration as those having flexible processes running multiple part numbers.
Overall Equipment Effectiveness (OEE) typically suffers during these times due to the frequent changeovers and short volume runs. If there was a time when you can’t change over or setup and run fast enough, this may be it. Hang on and enjoy the ride.
Until Next Time – STAY lean!