2017 BorgWarner Morse Systems Team Project

CAPITAL EFFICIENCY AND HEAT-TREATMENT BENCHMARKING PROJECT

The Challenge:
Within drivetrain chain manufacturing, BorgWarner Morse Systems was eager to benchmark and standardize heat-treatment furnace performance measures and was looking for recommendations on how to most efficiently utilize capital at Morse Systems Korea (MSK).

The Solution:
The Tauber team, using linear programming, the Bill of Materials system, capacity analyses, and cost analyses, presented an optimal production schedule and ascertained required production capacity at MSK. By doing so, the team reduced up to 2,600 overtime labor hours per year in addition to recommending a 25% reduction in the number of furnaces while still meeting demand. Together, the recommendations resulted in potential savings of up to $1.37 million over the next five years. Overall, this represents a yearly reduction of up to 9.1% in direct costs related to heat-treatment furnaces at MSK. The team also recommended a Global Improvement Resource Center—a common platform for plants to share continuous improvement ideas with each other. Finally, as a longterm goal, the team recommended standardization of machinery and product mix across plants, making it easier to manage global inventory and enabling easy sharing of best practices.

Read the 2017 BorgWarner Morse Systems Team Project Executive Summary in the 2017 SPOTLIGHT! book.

Student Team:
Joseph Vithayathil –Master of Business Administration
Sarah Wang–MSE Industrial and Operations Engineering

Project Sponsors:
Davide Girelli –Vice President and General Manager, BorgWarner Morse Systems, Europe and Asia
Han-Gyeong (HG) Kim–Manufacturing Engineering Manager, BorgWarner Morse Systems, Korea

Faculty Advisors:
Luis Garcia-Guzman–College of Engineering
Len Middleton–Ross School of Business


About Tauber Team Projects:

The 2017 Tauber Team Projects resulted in $575 million in savings according to sponsoring company calculations, an average of $18.5 million per project over 3 years.

Each two to three person Tauber Team consists of graduate engineering, MBA, and/or MSCM students. Along with receiving high-level corporate support from the sponsoring company, each team is advised by a College of Engineering and a Ross School of Business faculty member and overseen by a Tauber Institute Co-Director. The projects begin on-site in May and continue for 14 weeks.  Students present the results of their projects and compete for over $40,000 in scholarships at the U-M Tauber Institute's annual Spotlight! event, held each September in Ann Arbor, Michigan.  Spotlight! provides outstanding opportunities for students and corporate partners to establish relationships while exploring innovations in operations and manufacturing.
 
Access Spotlight! book for project details.
2017 BorgWarner Morse Systems Team
2017 BorgWarner Morse Systems Team Project
2017 BorgWarner Morse Systems Team in S. Korea