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CASE STUDY #1
Logistics Planning and Material Flow Analysis for H1N1 vaccines- OCI was called upon by a leading contract pharmaceutical company to establish volumetric and capacity baseline measures, material flow and develop a comprehensive internal/external plant logistics business plan in order to successfully incorporate the large increase in the manufacturing and filling of H1N1 vaccines at their facility. These vaccines were to be distributed in the US and in Europe to aid in the fight against the spread of the H1N1 virus.

OCI developed a business plan, which also included an analysis and planning model to quantify the impacts of this additional vaccine business on their resources including cold storage, labor requirements, warehousing and material handling requirements, receiving, shipping processes and intra-plant material dispositions. The model had to be flexible enough to handle the constantly changing forecasts and other production parameters and had to be developed within a short period of time. The results of the model were used to lay down the operating strategy and align the resources required to meet this challenge effectively. As part of the consulting effort, OCI also recommended staffing plans, streamlined material flow diagrams and optimal packaging configurations thereby providing a clear roadmap for the client to integrate the new business into their existing operations. OCI’s comprehensive business plan is being used today to execute the production of H1N1 vaccines and ensure timely and efficient flow of materials in the operation.

OVERALL EST. PROJECT: $400,000.00
FACILITY SIZE: 380,000 sq. ft.
THE RESULTS:
  • Delivered a comprehensive logistics business plan to execute the production of H1N1 vaccines including storage impacts, staffing plans and process improvements.
  • Provided an analysis and planning tool to the client for performing scenario analysis to evaluate impacts due to the constantly changing forecasts and operating parameters.
  • Developed receiving and shipping schedule plans for raw materials, packaging components and finished goods for the vaccine business to minimize impact on resources.
  • Delivered streamlined material flow diagrams from receiving of raw materials to shipping of finished goods.
  • Developed finished goods packaging configuration to optimize cube.
  • OCI made recommendations on the storage and material handling of Schedule I, II, III and IV drugs based on cGMP guidelines.
  • Additional production capacity equivalent to four (4) additional large-scale batches/day was discovered by OCI and is being utilized currently to manufacture the H1N1vaccines. This equates to millions of dollars of additional sales of the vaccine.

CASE STUDY #2
Automated Assembly line design and Process Re-engineering for Energy Efficient Ice Cube Machines- OCI was engaged by the leading Ice Cube Machine manufacturer in US to design an automated assembly line that could meet throughput quantities of 18,000 units/year. This volume represented a 10x increase from the current production levels and warranted an in depth review of the processes in the assembly and sub-assembly departments prior to the detailed design of the assembly line. OCI utilized Value Stream Mapping and other Lean tools to map all the processes and identified non-value added activities. OCI conducted time studies to ‘benchmark’ the Value Added Time for each process from receiving of the raw materials to shipping of the finished goods. OCI recommended ‘Quick Fixes’ to eliminate non-value added activities from the processes. To ensure that all the auxiliary operations, supporting the Assembly Line at the throughput levels of 18,000 units/year, operate uninterruptedly and in an efficient manner, OCI developed scheduling tools, provided lean training to the operators and the management, and established a continuous improvement culture.

To balance the assembly line, OCI conducted a thorough assessment of the assembly build sequence of the different ice machines SKU’s. The goal was to standardize the operations and minimize the duplication of material storage for every station. OCI implemented a build sequence which ensured equal distribution of assembly time under the required TAKT time for all the assembly stations and thus eliminated any idle time. During this process, OCI also identified sub-assemblies which can be fed to the line to reduce the build time by approximately 15%. The result was an optimal assembly line layout with an optimum balance between flexibility, throughput, and ROI.

OVERALL EST. PROJECT: $2,200,000.00
FACILITY SIZE: 97,000 sq. ft.
THE RESULTS:
  • Provided three (3) conceptual layouts of the assembly line incorporating varying degrees of automation and costing with order of magnitude +/- 25%.
  • Provided detailed design of the Assembly line and costing information with order of magnitude +/- 10%.
  • Maintained all project schedules to meet the deadlines with no delays.
  • Delivered an Optimal Scheduling Tool for one of the client’s critical sub-assembly component, which lead to 2X increase in it’s throughput.
  • Lean Visual Workplace was recommended to enhance productivity. Lean Audit Checklists were provided to the client to initiate lean improvements.
  • Comprehensive Lean Training sessions were conducted for the entire facility staff including members of senior management and operators.

CASE STUDY #3
Process and Conceptual Facility Design for manufacturing Wind Energy Gearboxes- OCI performed the consulting services in capacity as a Sub Contractor to an Architectural Firm. OCI evaluated the existing gearbox manufacturing process and provided recommendations to improve purchasing, inventory levels, ergonomics, and material handling for short term implementation. The goal was to provide a conceptual facility design to accommodate an exponential increase in the gearboxes during the next five (5) years. OCI analyzed different gearbox models to be manufactured and recommended the optimal number of workstations and assembly lines following a ‘Lean Flexible Production Model’ approach. Due to the weight of the finished gearboxes, that fell in the range of 35,000 lb – 100,000 lb, safe and efficient material handling was quite a challenge to achieve the desired production levels. However, OCI recommended a solution which is one of the best in industry, meet all OSHA regulations, and accommodate the required TAKT time. The recommended solution allowed the client to produce 8x the current production levels with 2x the labor cost.

OVERALL EST. PROJECT: $13,000,000.00
FACILITY SIZE: 300,000 sq. ft.
THE RESULTS:
  • Completed the design of the new facility. Areas designed included Warehouse, Receiving, Prep for Sub-Assembly, Sub-Assembly, Assembly, Prep-to-Paint, Paint, Test & Ship
  • Maintained all project schedules to meet the deadlines with no delays.
  • Continuous flow of the gearboxes was achieved between different workstations
  • Line balancing was performed to eliminate any idle time during the production of the gearboxes
  • Voice directed WMS was recommended to improve accuracy and efficiency in the warehouse and manufacturing stations
  • Lean Visual Workplace was recommended to enhance productivity

CASE STUDY #4
Distribution Center Sizing, Interior Layout Design, and Implementation - OCI has been involved with several projects for this client encompassing sites located in Pennsylvania, Nevada and Florida. Projects have included: totally designing the interior layout for an empty industrial facility, including automated material storage and handling equipment, conveying and sorting; RFDC and related hardware and software for a WMS; upgrade and optimize the flow of material through the facilities; increase storage capacity utilization by implementing VNA configurations; and project management of the relocation and consolidation of all warehousing and material handling functions into new facility.

OVERALL EST. PROJECT: $8,000,000.00
FACILITY SIZE: 140,000 sq. ft. and 360,000 sq. ft.
THE RESULTS:
  • Completed the design of a new distribution facility to consolidate two separate warehouses; managed the relocation and installation of inventory and equipment; and automated retrieval handling equipment.
  • Maintained all project schedules to meet go-live date with no delays.
  • Current distribution center operates at 25% higher productivity.

CASE STUDY #5
Materials Handling Review and Recommendations - Client is a food processing company whose primary products are packaged condiments, dressings and oils. OCI reviewed and prepared Baseline Measures reports for client to establish current operating standards while making short term recommendations to obtain a quick return. OCI prepared two conceptual layouts of the client’s manufacturing and distribution facility to optimize the material handling and flow through the facility. Client was experiencing tremendous growth and needed to know if the existing facility could handle the forecasted growth through the next three years. Although considerations were given to moving production and/or distribution into a new facility, the client desired to stay in the existing building. OCI provided the client with a high and low cost concept to completely re-design the interior layout of the existing facility, including automated material storage and handling equipment, automated packaging equipment, RFDC and related hardware and software for a WMS, thereby upgrading and optimizing the flow of material through the facilities, and increasing storage capacity.

OVERALL EST. PROJECT: $7,000,000.00
FACILITY SIZE: 150,000 sq. ft.
THE RESULTS:
  • Completed and presented bi-weekly reports on existing operations and recommended "quick fixes" to obtain "biggest bang for the buck" returns.
  • Completed and presented conceptual re-designs of the materials handling capabilities in their manufacturing and distribution facility to accommodate a forecasted growth through three years.
  • Presented concepts, high cost and low cost, so that client could stay in their existing facility by streamlining materials flow through automating materials handling in receiving, manufacturing, storage, and distribution.

CASE STUDY #6
Work Simplification of Warehouse Operations & WMS - Identified non-value-added process steps and manually intense materials handling methods that were the cause of bottlenecks and increased product cycle times. A number of process steps were eliminated and/or modified to allow for the design and implementation of an improved WMS and materials handling system. Areas evaluated included: computer systems, wave methodology, receiving, quality control, replenishment/put-away, ticketing, put system, pick system, shipping, and returns.

OVERALL EST. PROJECT: $1,000,000.00
FACILITY SIZE: 140,000 sq. ft.
THE RESULTS:
  • Improve facility capacity 40% by increasing the number of pallet positions and replacing existing racking with new, more space efficient Narrow Aisle (NA) pallet racking.
  • Implement pick-to-belt and pick-to-carton for additional sets of case flow racking needed to support picking of all SKUs.
  • Increase the quantity of RF terminals by 50% to more efficiently record daily activities.

CASE STUDY #7
Work Simplification Study Of Blending And Packaging Operations - Developed several conceptual packaging and blending area design alternatives for a four-floor expansion to the existing six-story facility. Eliminated numerous non-value-added steps and reduced material handling by recommending improved packaging equipment and workload scheduling methods. In addition, OCI performed a customer profile analysis and recommended leveling of primary customer orders through better planning of supply chain resources.

OVERALL EST. PROJECT: $14,000,000.00
FACILITY SIZE: 200,000 – 250,000 sq. ft.
THE RESULTS:
  • $900,000 - $1,500,000 labor savings per year based on alternative design provided.
  • 85% reduction in man-hours required to package finished goods.
  • 50% reduction in maintenance costs in the packaging and blending areas.
  • 50% reduction in cycle times from order placement to order delivery based on customer profile recommendations.

CASE STUDY #8
Baseline Measures & Warehouse Methods Improvements - Defined Baseline Measures and critical operational criteria for developing a conceptual DC master plan design that incorporated operational improvements utilizing WMS and RFDC system technologies. The goal was to provide a complete interactive warehouse management system to manage the complex flow of material and provide the client with state-of-the-art warehouse control rather than continue use of their non-interactive, localized computer system to record material movement.

OVERALL EST. PROJECT: $5,000,000.00
FACILITY SIZE: 280,000 sq. ft.
THE RESULTS:
  • Overall efficiency increase of 65% realized by incorporation of interactive WMS including: labor productivity gains by directing work instructions, space utilization improvements by directed put-away, better inventory control and management, error reductions, improved resource utilization, increased accuracy in inventory and transactions, and interfacing capability with various platforms and programs for web based communications.
  • Incorporation of several CubiScan machines consisting of high-speed conveyor section and barcode ready to allow more efficient SKU verification and vendor compliance recognition.
  • Increase cube storage space by 35% by adding high level, gravity flow pallet racking

CASE STUDY #9
Site Surveys, RFP Development, and WMS Selection - Provide operations analysis and RFDCS project management services to specify and select one common WMS that will interface and support the functionality of five existing manufacturing/distribution facilities with the possibility of expanding to 8-10 facilities. Although the functionality of each location is not the same, software was not tailored to each facility operation but specifications were created to allow the more complex facility requirements to be met while allowing future flexibility for the less complex facility requirements. Information system considerations included: user workstations, bar code/RF equipment software, client/server environments, required interfaces, host operating systems and hardware configurations, network platforms and configurations, conveyance, AS/RS, sortation/diversion, printers and labels, and reporting options. This project is in the vendor selection stage based on the detailed functionality system specification prepared by OCI.

OVERALL EST. PROJECT: $3,400,000.00
FACILITY SIZE: 598,000 sq. ft. – Site 1, NJ
156,100 sq. ft. – Site 2, NJ
515,000 sq. ft. – Site 3, MO
261,000 sq. ft. – Site 4, OH
205,000 sq. ft. – Site 5, WY
THE RESULTS:
  • Baselined the existing operations to develop site functional specifications, a Gap Analysis between sites, and to define specific areas for improvement and data collection standardization to achieve a global functional specification that will cover the needs of the five (5) facilities where the WMS will be implemented.
  • OCI developed an RFP document in the client's format with WMS specifications, including specific client purchasing requirements, for distribution. Vendors to receive an RFP were selected using OCI's standard filtering process based on the "must have" functionality needs of the client. OCI's WMS vendor scorecard was used as a tool to choose three vendors to present their capabilities to the client and OCI. OCI was able to reduce the price of the WMS by 25% via negotiations with the vendors.
  • OCI is set to provide project management services for the implementation of the WMS and print and apply labeling systems at the five facilities.

CASE STUDY #10
Operational Baseline Measures Development and Recommendations for Productivity and Operational Efficiency Improvement - Developed Baseline Measures of existing manufacturing and distribution operations for automotive after-market parts manufacturer. Upon completing onsite studies and development of Baseline Measures, OCI engineers identified a series of non-value-added process steps in packing operations and manually intense materials handling methods throughout all manufacturing and distribution operations that were the cause of bottlenecks, increased overall lead times, increased manning requirements, and growing backlogs. Although these inefficient processes were numerous, OCI concentrated on streamlining and/or automating those that presented the most attractive Return-On-Investment (less than six months), had the biggest positive impact on the most critical operations, and those that were easily and quickly deployed. Areas evaluated included: operation execution system and satellite applications, waving/picking methodology, pre-receiving and receiving procedures and information transfer, replenishment/putaway, material handling equipment and material handling techniques, labor intensive packaging operations and scheduling, and shipping documentation processing.

OVERALL EST. PROJECT: $282,000
FACILITY SIZE: 125,000 sq. ft.
THE RESULTS:
  • Improve picking capacity 10% to 25% by modifying current operational procedures and system functionality.
  • Improve packing capacity 10% to 30% by modifying current operational procedures and system functionality.
  • Identified problems and recommended changes to existing conveyor system to effectively eliminate shut downs which in turn would reduce overall order fulfillment cycle time.
  • Analyze inventory to eliminate dead or obsolete items and free up storage space. This recommendation could have a tremendous effect on the overall company by possible eliminating the need to build or lease an entire new building to hold newly acquired company'' inventory.
  • Achieved justification of recommended systems through increased throughput and reduced labor count requirements.
  • Calculated ROI equals one month on a Net Present Value basis.

CASE STUDY #11
Fluid Process Material Loss Study - Developed baseline measures of existing chilled juice production operations by performing onsite studies and observations, as well as several production schedules reviews and analysis. The goal of OCI’s engagement was to reduce a material loss during production processes that accounted for approximately $1,160,000 on a yearly basis. After a total of 12 weeks of onsite efforts, OCI engineers developed Short Term recommendations offering a quick Return-On-Investment equal to 3 months with a less expensive implementation. OCI also developed a Long Term set of recommendations that offered a longer ROI equal to 5 months and a more expensive implementation. On both scenarios the ROI was less than six months without taking into account recommendations that would provide opportunities to recapture retail sales equal to three times the baselined material loss cost.

OVERALL EST. PROJECT: $800,000
FACILITY SIZE: 150,000 sq. ft.
THE RESULTS:
  • A 65% estimated total yearly material loss recovery equal to $755,000 with an estimated capital investment equal to $300,000 for a Return On Investment equal to 0.40 years.
  • A recapture of lost retail sales equal to $3,600,000 by implementing recommendations that allow for increased ability to pack out more concentrate products.
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