CAPITAL EFFICIENCY AND HEAT-TREATMENT BENCHMARKING PROJECT
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 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.
Joseph Vithayathil –Master of Business Administration
Sarah Wang–MSE Industrial and Operations Engineering
Davide Girelli –Vice President and General Manager, BorgWarner Morse Systems, Europe and Asia
Han-Gyeong (HG) Kim–Manufacturing Engineering Manager, BorgWarner Morse Systems, Korea
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.