Study of an optimisation of the logistics concept for engine wiring harnesses

Abstract: The logistics concepts at BMW's engine factory in Munich are continuously revised, in order to optimise the logistics process. The objective of this thesis work is to study if it would be profitable to use an individual, reusable package for transporting and handling engine wiring harnesses in order to prevent damages. Approach The work was divided into different stages. First the flow of the harnesses was traced. This was followed by a mapping of the conditions, e.g. capacity, number of variants and safety policy. After analysing the gathered information, a storage and handling concept was prepared. Finally, the whole concept was analysed from the view of business economics. Evaluated Concept The concept is based on having a reusable system consisting of standardised boxes, Euro-pallets and covers. The aim is to have a unit that could be unbroken as long as possible in the logistics chain. Based on forecasts, the circulating amounts of boxes, pallets and covers are calculated. The variants are classified as high- and low-runners, according to their frequency. The storage and handling concept is founded on live storage. The buffer stock and the commission station would be integrated, which means a beneficial reduction in handling. Another advantage is that it would be possible to easily work after the FIFO-principle. ln the redesigned concept, the conveyor station would have a central position. It would be surrounded by roller conveyor facilities for pallets (high-runners) and for individual boxes (low-runners). The store is dimensioned to accommodate about 4600 harnesses, which covers three days? consumption. The existing and the proposed concept are compared from an economic point of view, The new concept would involve high investment costs in handling and storage facilities. The hereby obtainable decrease of damages and simplification of handling routines would bring savings for BMW. On the other hand, increased costs for the supplier would lead to charges for extra handling, which nearly equals the savings. The result from the economic calculations shows that it is not profitable to introduce a new handling concept based on the use of an individual package for the engine wiring harnesses. Therefore the recommendation to the Engine and Chassis Division of BMW AG is to not implement the evaluated system under current conditions. However, the concept should be borne in mind since it has desirable advantages. This thesis work has formed a detailed idea of the situation and could be used for further attempts to improve the logistics concept For the engine wiring harnesses.