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An Automotive Supplier used the Flow Planner to calculate total indirect labor costs for a new shifter cable that they were planning to produce. Materials management at the plant estimated that the new product line would require additional material handling personnel. So engineers created Material flow diagrams for the new product based on several proposed routings and existing material handling labor rates. The engineers were able to show that by using a lean layout that facilitated piece part flow, the new production volume would not require additional material handling labor which helped them avoid $45,000 per year in additional indirect labor costs. |

Results calculated show that hiring new personnel is not required
in this study. |