📋 Case Study
Automotive Tier-1 Supplier Line Balancing Optimization
Labor cost overrun due to unbalanced station cycle times and high overtime
🏗️ Project Overview
New EV battery module assembly line in Michigan
🎯 Challenge
Labor cost overrun due to unbalanced station cycle times and high overtime
🔧 Design Approach
Time-motion study + takt time alignment using SMED principles and cross-training matrix
📐 Design Diagram
AI-generated project design illustration
📐 Key Calculations
Labor Cost per Unit
(Overtime Hours × Overtime Rate) / Units
Result: $42.70
Identified $18.30/unit excess cost
Takt Time Variance
σ(Cycle Times)/Takt
Result: 23.6%
Triggered bottleneck redesign
📊 Results
19% reduction in direct labor cost/unit, 31% decrease in overtime hours, 99.2% first-pass yield achieved💡 Lessons Learned
- •Cycle time standardization must precede cost modeling
- •Cross-training ROI requires 6-month horizon
- •Overtime premium distorts true labor cost attribution
✅ Key Takeaways
- 1Cycle time standardization must precede cost modeling
- 2Cross-training ROI requires 6-month horizon
- 3Overtime premium distorts true labor cost attribution
📐 Prerequisites
Understand these before this topic
🔗 Engineering Applications
See how this applies across industries