Wire Harness Split Production for Delivery Reliability and Low Inventory
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Solution Overview
Problem
The challenge faced by component manufacturers of wire harnesses is the need to manage inventory efficiently to meet customer requirements without incurring excessive costs due to overproduction or shortages, particularly when manufacturing overseas and importing to Japan, where delivery times can be lengthy, leading to uncertainties in demand and increased storage needs.
Innovation Solution
A component manufacturing system with a main base, a first production base located overseas, and a second production base closer to the customer's delivery location, where the main base designs common and optional wire harnesses based on customer plans, the first production base produces common harnesses, and the second production base combines and delivers them, allowing for just-in-time production and reduced excess inventory by determining production quantities dynamically based on order confirmations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If wire harnesses are manufactured overseas in advance to ensure delivery by the customer's deadline, then delivery reliability is improved, but manufacturing cost increases due to overproduction and storage requirements
Solution Approach 1:
The wire harness is divided into two segments: a common wire harness (base harness) and an optional wire harness. The common wire harness is manufactured overseas in advance and stored, while the optional wire harness is manufactured locally in Japan after the customer's order is confirmed. This segmentation allows the system to benefit from early production of the common portion while avoiding overproduction of the entire wire harness, thereby reducing excess inventory while maintaining delivery reliability.
2Quantity of substance
If the number of wire harnesses manufactured overseas is reduced to avoid overproduction, then manufacturing cost decreases, but the risk of delivery shortage increases
Solution Approach 1:
The common wire harness is manufactured overseas in advance (preliminary action) before the customer's order is confirmed. This allows the majority of the wire harness to be prepared early, reducing the risk of delivery shortage. The remaining optional portion is then completed locally after order confirmation, ensuring that the final product meets the customer's specific requirements while maintaining delivery assurance.
3Productivity
If wire harnesses are manufactured as a complete product overseas, then manufacturing efficiency is improved, but storage cost increases due to lengthy import time to Japan
Solution Approach 1:
The wire harness is segmented into common and optional portions, with the common wire harness manufactured overseas and the optional portion manufactured locally in Japan. This segmentation allows the system to take advantage of overseas manufacturing efficiency for the common portion while minimizing storage requirements by only importing the essential base component rather than the complete finished product.
Solution Approach 2:
The common wire harness acts as an intermediary component that is manufactured overseas and then combined with the optional wire harness in Japan. This intermediary approach allows the system to benefit from overseas manufacturing efficiency while avoiding the need to store complete finished wire harnesses, as only the base component is imported and stored.
Data Source
AI summary
A component manufacturing system includes a main base, a first production base and a second production base. The main base designs a common wire harness and optional wire harnesses. The main base has a first order function of determining the number of common wire harnesses to be produced based on temporary order information and placing an order with the first production base, and a second order function of acquiring order confirmation information from the customer at a timing closer to a delivery date than the temporary order information and placing an order with the second production base for the completed wire harness based on the confirmation information.