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Contracting Agency: U.S. Army Corpus Christi Army Depot (CCAD)
Point of Contact: solutions@kbsi.com

Overview

At the heart of manufacturing decision-making is a deceptively simple question: how much does it cost to do what I do? In other words, what are the processes that I perform in production and what are the costs of performing these processes considering the attributes-equipment, material, and labor-that they require? Knowing the answer to these question opens a wide range of other potentially richer veins of inquiry including trade-off analysis of work flow and workloads, economic analysis of equipment downtime, and simulation forecasting to realize the highest productivity and cost avoidance.

The U.S. Air Force's Oklahoma City Air Logistics Center (OC-ALC), Tinker Air Force Base, was exploring ways in which to use emerging technologies to perform economic analyses of maintenance and repair equipment and weigh the cost benefits of refurbishing versus purchasing equipment. An important consideration in these investigations was the common disconnect between the players involved: the shops that use the equipment; plant management that directs the loading, scheduling, repair, and maintenance of the equipment; and the analysts who perform cost benefit analyses for new equipment purchases. KBSI's solution had to adequately address the needs of each of these groups.

PROSIM® : Process and Simulation Modeling
AIØWIN® : Activity an ABC Modeling
SmartCost® : Cost Modeling and Analysis

 

In response, KBSI, leveraging their expertise in knowledge representation methods and technologies, focused on developing technologies for capturing and applying the domain knowledge of pricing, costs, and benefits specific to Tinker's production environment. These knowledge representation systems served as the baseline for a number of technologies developed by KBSI to aid the Air Force in automating decision support for equipment purchases, centralizing data concerning equipment life-cycle parameters, and traceability of the cost calculations performed in determining the need for equipment acquisition.

KBSI applied these methods and technologies at the U.S. Army's Corpus Christi Army Depot (CCAD), where depot maintenance managers were experiencing difficulties in identifying the direct and indirect costs associated with activities on the shop floor. CCAD was keen to determine the cost of jobs, based on selected shop activities, in order to anticipate the costs associated with working job batches in CCAD's blade and shot peening shops.

KBSI began by developing, in coordination with shop floor workers and managers, a series of activity and cost models that represented current activities on the shop floor. The models, developed using KBSI's AIØ WIN®, PROSIM®, and SmartCost® tools, included detailed decompositions of the individual shop activities, showing a more granular view of activities and their constraints, cost models, cost rules, and cost analysis spread sheets. Once the shop floor activities and costs were mapped out, KBSI next developed a software interface front-end tool, SmartStat®, that allowed for stochastic simulation of the AIØ WIN® cost model, allowing users to track, for example, the statistical behavior of cost driving attributes like labor over a set of simulation iterations and to evaluate the cost frequencies and ranges. SmartStat® results are presented in a simple to use Excel spreadsheet for closer analysis.

These technologies helped CCAD to drastically improve blade and shot peening shop efficiency, reduce work in progress (WIP), and determine the optimum induction rate of jobs in the shops. The results? In addition to demonstrating the feasibility of integrating these methods and technologies with CCAD's existing systems, this project directly reduced WIP inventory valued at up to $40M from the shop floor, reduced cycle time by 25%, and increased the available capacity of the workforce by 35%.

 

 

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