Facility Design Automotive Spare Parts


What type of facility is necessary?

A major automotive manufacturer was in need of a new expanded warranty parts return center where parts re-placed under warranty could be evaluated and then salvaged or destroyed. Management was presented with three alternatives for the new facility, a greenfield solution, the purchase of an existing facility, or to retrofit an existing facility.

The initial stage of the project was to develop a conceptual operating design that could be used to evaluate the three alternatives, before developing a detailed design and a building or retrofitting plan.
Data was gathered on the forecast volumes to be processed (storage, throughput, etc.) and other planning factors and constraints to be considered in the conceptual design. It included:

  • Process flows
  • Block layouts
  • Operating outlines
  • Staffing estimates
  • Cost/benefit estimates
  • Implementation plans

After developing the conceptual design and comparing estimates for the three different building alternatives, it was determined that the most cost effective solution was to retrofit and existing distribution location and that recommendation was acted upon.

The focus of the conceptual design was on operational performance to include the efficient recycling of packaging Material and on inventory control. The conceptual design was then transformed into a detailed design.

Implementation and Start-up

After detailing the process flows, layouts, operating descriptions, and staffing requirements; the facility needed to be retrofitted to the new plans. Specifications for the new equipment and services were developed, RFQ’s written and distributed to vendors by product/service type. The quotations were then evaluated and the appropriate vendors were selected, and final pricing and installation contracts were developed.

The implementation plan was prepared to monitor the implementation process. It incorporating each vendor’s specific delivery/installation plans to report deviations, and develop corrective actions as needed. A final performance/compliance report was developed to detail the final installation and recommend any future improvement opportunities. The facility opened on time and on budget.

Establish is a supply chain consulting firm focusing on supply chain strategy, transportation consulting services, warehouse design & improvements and supply chain audits & analytics.