Resource Allocation Playbook

Woodward is a design and manufacturing company headquartered in Fort Collins, Colorado. They provide control systems and sub-components to the aerospace, industrial, military, power, and transportation industries to power a clean future. Woodward is facing inconsistent output from three interdependent assembly cells: electronic assembly, actuators, and large throttle valves. These cells struggle with operating at the correct rate due to unpredictable staffing levels and a lack of standardized procedures. This in turn affects equipment and labor productivity as well as the inventory levels between cells, causing idle time and long lead times for products.Phase 1 of the project involved collecting and analyzing data to establish a baseline for product lead times, product mix, and operation cycle times. In evaluating current processes, the team identified Woodward’s need for a playbook, a standardized pivot plan to improve daily operations for Value Stream Managers to adapt to different staffing scenarios.Phase 2 of the project included developing a simulation and evaluating staffing scenarios. The team built a simulation in Process Simulator that accurately reflects Woodward’s three interdependent cells. With testing, the team determined each cell’s maximum capacity and identified bottlenecks.Phase 3, the final phase, was the development of the playbook. The team ran staffing scenarios within the simulation to create the plays that maximize throughput for each cell. The simulation demonstrated a proof of concept for the recommended staffing changes and served as a tool for developing a playbook of future staffing levels under various scenarios. Once the playbook was implemented, and staffing levels were properly set, the lead time standard deviation decreased by 45% on average between the three cells. Additionally, the cells adopted a Standardized Work in Process (SWIP) to support the planned production rate. Overall, the implementation of the playbook is expected to save Woodward $1,010,200 through a one-time inventory reduction, retained sales, reduced turnover, labor cost savings, and overhead cost savings. Finally, this playbook is designed for simple replication to other business areas in the plant, where the opportunity exists for further benefits beyond the initial project scope with a projected savings of $3,328,000.