Talkin' Trucks With Mike:A History of the TNT Companies

The milk run process was fed by important increase of different options in modern cars, the
emergence of flexible assembly lines where 2or 3 different models are built successively on
the same line and the trend of European vehicle manufacturers to built to order a majority
of cars (around 80%). All this means more mixed small loads to deliver.

Milk run reduces inventories of incoming materials, makes lead time predictable even for
items of variable consumption and smooths the receiving workload. Milk run is just one
part of the jit concept, the other ones being the merge in transit cross dock and the se-
quencing center; this one located usually nearby the assembly plant.

The jit delivery process is costly and very demanding for suppliers, carriers as well as ma-
nufacturers. However the added value of jit includes material handling reduction, less spa-
ce needed at the production facilities, more flexibility in the market, a greater competitive-
ness produced by the reduction of the production costs and more pressure for quality on
the suppliers. It sure that the jit system increases the stress over production and distribu-
tion, any mistake soon became a disaster.

A concrete exemple: At the Chrysler Jefferson North plant in Detroit, if a load don't arrive on time and production comes to a halt it cost $11,000 a minute, and the tab is picked up by
the transport company. Here comes the urgent freight specialist but its high cost is nothing
in front of the saving brings by the jit system. It's because the most costly part of the sup-
ply chain for the manufacturers are inventory, space at the assembly plant and high cost of
labor at the plant.Everything which reduce those costs his very big money. Over the money
saving, it's the capacity to produce vehicles efficiently which is on the table.

The numbers of the Chrysler Brampton assembly that i'm familiar with tell everything.

Production Logistics
--------------- -------------

1,400 cars/day 570 inbound loads/day
2,500 parts/cars 95 outbound carboard loads/day
3.5 million parts/day 80 outbound empty container loads/day
Inventory: 1 to 3 hours In-plant switching: 650 trailers/day
Inventory in transit: 2.2 days**

** on the road in trailers
inside a cross dock

Whithout the jit system the plant would be submerged by a pilling up of parts.


Photos of switchers in Brampton

 

I have some documentstion somewhere, I will look for it

 

The following is missing on the post 142

Chrysler Brampton assembly

Logistics
------------

570 inbound loads/day
95 outbound carboard loads/day
80 outbound empty container loads/day
In-plant switching: 650 loads/day

 

Who knew that mowing the lawn was a escape tactic. I am sorry to hear about the issues you dealt with.

 

Family is not always the heaven but at the end of the day it's the most precious benefit of the life.