World Class Manufacturing: Evaluating Capacity for Wheel Production in Mexico

World Class Manufacturing: Evaluating Capacity for Wheel Production in Mexico

A joint venture was established to provide wheel assemblies to the Mexican and South American automotive and truck markets. To take advantage of the expected strong growth of the automotive and truck industries in Mexico, this company was attempting to establish itself as a trusted, reliable supplier. At the same time the new company was establishing its new identity, it was pursuing ambitious growth and change plans.

A new facility was planned to produce wheel assemblies. To achieve anticipated product shipments the company planned future production line capacities. One of several banks financing this venture requested an independent assessment of production capacity and capability of the equipment slated for this new facility. Rockford Consulting Group was retained to perform that independent assessment. The objectives of this effort were to:

The scope of this phase of work encompassed 14 production lines to be located in the new manufacturing facility.

We began the effort with a detailed review of wheels, rings, and discs machined and assembled using current manufacturing techniques. Next, we spent time on the shop floor discussing machines, processes, bottleneck operations, set-ups, mixing, product mix, lot sizes, etc. Using existing cycle times we converted the units per hour to units per year. Our priorities given to us were to test the capacity of (1) spinners, (2) one specific line, and (3) heavy tubeless wheels.

Our review revealed some discrepancies in the capacity reports provided to us, but none of a critical nature. We also found discrepancies in production rates. The most serious discrepancy was found in the production rate of the 3rd Heavy Spinner to be used in the Heavy Tubeless Wheels line. The production rate was understated as 28 pieces per hour, and the rate guaranteed by the spinner supplier was 60. This resulted in a favorable correction.

In general, we assessed the overall planned production capability as reasonable to meet the forecasted shipments for the years 2 through 4. However, the capacity required to make shipments in year 2 was predicated on getting a 3rd Heavy Spinner in full production by October 1st at the latest. Our recommendation was to accelerate the schedule for the spinner.