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TRW Automotive Reduces Operating Costs by Almost £100,000 Per Annum using WITNESS

APPLICATION: Supply Chain Operations

VERTICAL: Automotive

SECTOR: Manufacturing

BENEFIT: TRW Automotive uses WITNESS Predictive Simulation to model its supply chain operations, reducing costs by nearly £100,000 per annum

TRW Automotive is one of the world’s leading suppliers of car accessories. Founded in 1999 and located in Jablonec nad Nisou in the Czech Republic, Lucas Varity s.r.o is a division of TRW Automotive focused on the development, manufacture and sale of hydraulic brakes.

Faced with a challenge to reduce its operating costs by 10%, the company worked with consultancy DYNAMIC FUTURE to deploy Lanner’s predictive simulation platform, WITNESS.

The WITNESS model was designed to dynamically simulate material flows, storage capacity, handling equipment and personnel, to remove bottlenecks and optimise warehouse and supply chain operations at the brakes company.

It mapped different types of handling equipment such as fork lifts, all transfer points, truck capacity and constraints, with a view to eliminating a number of delivery points across the supply chain, as well as reducing the number of fork lifts used in production. The model also simulated handlers’ work on production lines to identify inefficiencies.

As a result of the conclusions highlighted using WITNESS, TRW Automotive was able to reduce the number of delivery points across its supply chain and cut the number of forklifts it uses in the warehouse, leading to savings of 245,000 CZK (£8000) per month.

Josef Jindra, former logistics manager of TRW Automotive, comments, “Working with DYNAMIC FUTURE s.r.o. brought us a new approach to process optimisation. Our use of dynamic simulation to model handling processes helped us to verify a lot of different scenarios with an emphasis on elimination of delivery stations, decreasing the number of fork lift trucks and reducing total operational costs. After implementing the conclusions of the model we were able to reduce operational costs by almost £100,000 per annum. This project showed us big possibilities in optimising processes through dynamic simulation and started a long term relationship with DYNAMIC FUTURE s.r.o.”

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