MATERIAL HANDLING IMPROVEMENT

tugger cart system

SERVICE AREA:

IMEG partnered with a Midwest-based manufacturer of standard and customized electrical cabinets for the Industrial and IT sectors to improve its material delivery system. The manufacturing facility features an 8-story automated storage and retrieval system (AS/RS) and a 3-mile paint line but lacked a standardized way to move purchased components from the warehouse to the assembly lines.

To address this, IMEG designed and implemented a tugger cart system that optimized material flow, enhanced workplace organization, and supported lean production goals.

THE PROBLEM

No existing raw material delivery system from warehouse to assembly
Excess materials cluttering the assembly lines, contributing to inefficiency
Disorganized parts storage causing delays and time wasted locating components
Lack of visibility into part locations and replenishment status

THE PLAN

IMEG developed a comprehensive material handling strategy grounded in lean principles and data-driven analysis:

Verified and updated AutoCAD plant layouts to reflect current and proposed states
Evaluated all purchased component data to develop a Plan for Every Part (PFEP)
Mapped existing material flow and travel paths to identify inefficiencies
Defined point-of-use (POU) locations for all lineside materials
Created optimized AutoCAD future-state plant layouts that minimized material travel and improved material flow
Developed standard pack sized for materials and implemented FIFO material flow principles
Calculated required staffing for the tugger cart system to support production volumes
Built a Return on Investment (ROI) model quantifying cost reductions and labor savings
Developed operator Work Instructions for safe, consistent tugger cart operation
Established an ongoing auditing process to sustain 5S standards and tugger cart performance

manufacturing logistics

THE RESULTS

Eliminated line-side material shortages, improving production flow
Enhanced 5S workplace organization in both the warehouse and assembly areas
Reduced required material handling labor by 25%
Minimized non-value-added activities at the assembly lines through consistent part presentation
Reduced labor waste in the warehouse via designated, organized kit storage locations