Boosting the efficiency of wheel production at SKAD
The Company is a leading manufacturer of cast aluminium alloy wheels, and intends to have a market share of at least 20% in the growing market of aluminium alloy wheels.
Operations Research | Boosting the efficiency of wheel production at SKAD
Business case
In 2018, the market of new cars continued to grow. The market volume for aluminium alloy wheels is about 8 mln units per year. According to current estimates, by 2025 the consumption of aluminium alloy wheels in Russia could increase by 44%, reaching over 13 mln units per year.
The current capacity of the Company allows it to meet less than 15% of the demand in Russia.
Goal:
Have a market share of at least 20%, even as demand continues to grow.
Development priorities:
Standardised work. Reduced fluctuations and increased load of the work centres.
Adopt TPM methods. Boosting overall equipment efficiency.
Sorting out quality issues using the 1*1 method Reducing in-house defects and production waste.
Current results:
Indicator |
UoM |
Before |
After |
Change |
Yield |
% |
81,3 |
85,2 |
+3,9 |
Production equipment downtime |
hours per month |
631,27 |
359,7 |
-43% |
Unscheduled equipment downtime |
hours per month |
623,41 |
455,1 |
-27% |
Market share |
% |
12 |
15 |
+3 |
Summary:
Operations improvements and elimination of waste allow the Company to boost output of aluminium alloy wheels by more than 90,000 units per year without having to retrofit the production equipment.
