2021 Spotlight! Book

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SPOTLIGHT! TEAM PROJECT SHOWCASE AND SCHOLARSHIP COMPETITION

The Tauber Institute is the proud inaugural winner of the UPS George D. Smith Prize for effective innovative preparation of students to be good practitioners of operations research, management science or analytics.

University of Michigan Nondiscrimination Policy The University of Michigan, as an equal opportunity/affirmative action employer, complies with all applicable federal and state laws regarding nondiscrimination and affirmative action. The University of Michigan is committed to a policy of equal opportunity for all persons and does not discriminate on the basis of race, color, national origin, age, marital status, sex, sexual orientation, gender identity, gender expression, disability, religion, height, weight, or veteran status in employment, educational programs and activities, and admissions.

Inquiries or complaints may be addressed to the Senior Director for Institutional Equity, and Title IX/Section 504/ADA Coordinator, Office for Institutional Equity, 2072 Administrative Services Building, Ann Arbor, Michigan 48109-1432, 734-763-0235, TTY 734-647-1388, institutional.equity@umich.edu.

For other University of Michigan information call 734-764-1817.

Regents of the University of Michigan Jordan B. Acker, Michael J. Behm, Mark J. Bernstein, Paul W. Brown, Sarah Hubbar, Denise Ilitch, Ron Weiser, Katherine E. White, Mark S. Schlissel (ex officio) © 2021 Regents of the University of Michigan

Front cover photo: The Burton Tower Lighting for Spring Commencement during the month of April.

Photographer Scott C. Soderberg • Copyright 2021 Michigan Photography

TAUBER INSTITUTE FOR GLOBAL OPERATIONS

Welcome to 2021 Spotlight!

September 17, 2021

Welcome!

The Tauber Institute for Global Operations completed another year of action-based team projects. In this past academic year 2020-2021, 56 students participated in 25 team projects featuring 20 sponsoring companies from a wide range of industries, including aerospace, internet commerce, high tech, health care, automotive, energy and retail. The 2021 sponsors include American Industrial Partners, Amazon, Beyond Meat, Boeing, Brunswick, Curation Foods, Estee Lauder, Ford Motor Company, General Motors, Herman Miller, Howmet Aerospace, Mayo Clinic, C.S. Mott Children’s Hospital, National Center for Manufacturing Sciences, PepsiCo, Pfizer, Stanley Black & Decker, Stoneridge, Target, and Whirlpool. As part of a comprehensive training program students participated in virtual facility tours, and leadership and teamwork training modules leading up to their projects. The 2021 projects resulted in $989 million in savings according to sponsoring company calculation, an average of $43 million per project over three years. This excludes one team project which created $1 billion dollars of additional revenue generation.

This book documents student teams’ regional and global impact with executive summaries describing the challenge, method, and results from each sponsored project. The depth and breadth of our students’ projects reflect the demands faced by operations in an ever-changing world. We hope these executive summaries will provide insight into the University of Michigan’s strong global reputation and partnerships with leading companies, who know that our students can be called upon to solve some of their most challenging problems.

Best Regards,

Hyun-soo Ahn Ford Motor Company Business Co-Director and Jack D. SparksWhirlpool Corporation Research Professor of Business Administration Ross School of Business

Damian Beil Ahn Hyun-soo

Larry Seiford Larry Seiford

Ray Muscat

Ray Muscat

Larry Seiford Goff Smith Engineering Co-Director and Professor of Industrial & Operations Engineering College of Engineering

Ray Muscat Industry Director Tauber Institute for Global Operations

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SPOTLIGHT! 2021 September 17, 2021 September 14, 2018

W of the T The T Welcome to the 28th Spotlight! Team Project Showcase and Scholarship university is a world leader in innovation and impact. Thanks to Competition with the Tauber Institute for Global Operations at the the gener University Joel D. T of Michigan. I am thrilled to celebrate another fantastic year of andbetween Ross School Businessand students in apartners. ofEngineering collaborations our of students industry partnership that is making an incr

Students from the Stephen M. Ross School of Business and the College As public university of aEngineering pivoted as the pandemic continued to affect the research and education in service of society circumstances and logistics of their projects. They adapted to even the from different disciplines, the T most challenging situations to continue the search for solutions with far-reaching impact. This is Michigan power to tackle large-scale operational challenges, further demonstrating that the best at its finest.

This year, Tauber Team Projects identified more than $989 million dollars in savings, an average of $43 million per project over three years. With the support of our dedicated industry partners, our students have tackled a range of problems in an industry setting and gained essential and relevant experience, preparing them for even greater success when they leave Michigan and begin their careers.

I offer my deepest thanks to Joel D. Tauber, without whose generosity and vision the great successes of the Tauber Institute would not be possible. I’m also grateful to the company partners who have supported and guided our students over the last several months. We appreciate your willingness to engage and collaborate with the next generation of engineers, entrepreneurs, and scientists.

The pages that follow demonstrate the great synergies that take place when great minds come together.

I am sure you will enjoy reading them.

Sincerely,

Mark S. Schlissel University of Michigan President

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Table of Contents About the Tauber Institute for Global Operations . . . . . . . . . 4 Year In Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Tauber Alumni Make a Lasting Impact. . . . . . . . . . . . . . . . . . 12 Navigating COVID: Challenges, Lessons, and New Possibilities. . . . . . . . . . . . . . 14 Industry Advisory Board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Education in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Cultivating Thought Leadership. . . . . . . . . . . . . . . . . . . . . . . . 22 Tauber Students. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

CURATION FOODS, INC. Modeling Supply Chain Risks for Agricultural Sourcing. . . . 65 THE ESTEE LAUDER COMPANIES Improving Ecommerce Delivery Experience Through New Inventory Positioning Capabilities . . . . . . . . . . . . . . . . 68 FORD MOTOR COMPANY Using AI to Automate and Scale Digital Twin Technology for Advanced Manufacturing. . . . . . . . . . . . . . . . 71 GENERAL MOTORS COMPANY Deep Learning For Machine Vision. . . . . . . . . . . . . . . . . . . . . . 74

Project Descriptions AMAZON.COM, INC.- CANADA Alternative Fulfillment & Labor Planning Solutions for the Greater Vancouver Area. . . . . . . . . . . . . . . . . . . . . . . . . 32

HERMAN MILLER, INC. Improving Domestic Outbound Freight Utilization . . . . . . . 78

AMAZON.COM, INC.- MAINTENANCE Dynamic Preventive Maintenance. . . . . . . . . . . . . . . . . . . . . . 35

HOWMET AEROSPACE Optimizing Working Capital And Network Design. . . . . . . . 82

AMAZON.COM, INC.- NEW SITE New Site Launch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

THE MAYO CLINIC Optimizing Inventory Management for Labs. . . . . . . . . . . . . 85

AMAZON.COM, INC.- ROBOTICS Developing A Supplier Assessment Framework . . . . . . . . . . 41

C.S. MOTT CHILDREN’S HOSPITAL Augmented Reality in Pediatric Minimally Invasive Surgery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

AMERICAN INDUSTRIAL PARTNERS Additive Manufacturing Opportunity Identification. . . . . . 44 BEYOND MEAT Overall Equipment Effectiveness And Continuous Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 THE BOEING COMPANY – DELIVERY OPERATIONS Production System Stability through Structured Problem Solving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 THE BOEING COMPANY – SUSTAINABLE MATERIAL Integrating Sustainability Strategy at Boeing Commercial Airplanes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 THE BOEING COMPANY – WAREHOUSING Warehousing Business Case Analysis Toolkit for The Boeing Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 BRUNSWICK CORPORATION Moving From Infinite To Finite Capacity Planning. . . . . . . . 61

NATIONAL CENTER FOR MANUFACURING SCIENCES Establishing and Maturing a Digital Infrastructure For The United States Government. . . . . . . . . . . . . . . . . . . . . 91 PEPSICO, INC. Tolleson Gatorade Water Use Reduction. . . . . . . . . . . . . . . . 94 PFIZER, INC. Batch Changeover Velocity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 STANLEY BLACK & DECKER, INC. Industry 4.0: IIOT Machine Condition Monitoring and Analytics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 STONERIDGE, INC. Product Line Strategy – Driveline Actuation . . . . . . . . . . . . 103 TARGET CORPORATION Improving Problem Freight Disposition Time . . . . . . . . . . . 106 WHIRLPOOL CORPORATION Developing the IdX Training Pathway. . . . . . . . . . . . . . . . . . 110 TAUBER.UMICH.EDU

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SPOTLIGHT! 2021 About the Tauber Institute Industry identified a need.

The University of Michigan responded.

It all began when a gathering of business advisors identified a key category of employees missing from their organizations: trained professionals who understand both the business and engineering aspects of manufacturing.

As a result of that discussion, the University of Michigan’s Ross School of Business and College of Engineering formed a new cross-unit collaboration. Named for benefactor and U-M alumnus Joel Tauber, the Tauber Institute was born — and immediately began to innovate.

Faculty in the two schools created new courses to deliver an integrated education addressing the challenges of modern manufacturing, with an emphasis on leadership skills.

The Tauber Institute sought every opportunity to immerse students in real-world experiences — leading to the development of Tauber team projects and the annual Spotlight! event, where students compete for academic scholarships through their presentations about work at top companies across the U.S. and around the world.

“When I was honored with the naming of the Tauber Institute back in 1995, I never dreamed it would become the vibrant global network of operations professionals and thought-leaders that it is today. Thank you all for your contributions to this community that inspires me with its energy and its eagerness to embrace new ideas.”

- Joel Tauber

Tauber team projects: on display at Spotlight!

Over the summer, teams of Tauber Institute students tackle a wide range of operations challenges faced by our industry partners. At the annual September Spotlight! event, student teams present their solutions in a competitive setting to win academic scholarships.

Spotlight! is an ideal opportunity for corporate representatives to meet Tauber students, develop relationships, and explore how a future Tauber team project could improve operations at their organization. According to sponsoring company calculations, this year’s Tauber team projects resulted in an average savings of $43 million per project over three years, per company calculations. The total savings projected was $989 million.

AWARD WINNING INSTITUTE The Tauber Institute has enjoyed many accolades — including the UPS George D. Smith Prize for effective education in the fields of operations research, management science, and analytics. But a truer measure of Tauber’s success is that its graduates quickly secure rewarding employment, make an immediate impact in their respective companies, and rise to positions of authority.

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YEAR in REVIEW

SPOTLIGHT! 2021 YEAR

in REVIEW

We showcased the next generation of operations leaders.

Inventive solutions for tough operations challenges took center stage at the Tauber Institute for Global Operations’ 2020 Spotlight! Team Project Showcase and Scholarship Competition.

The 2020 Tauber Team Projects resulted in $433.8 million in savings according to sponsoring company calculations, an average of $31 million per project over three years.

Steelcase, Stanley Black & Decker, and Target received longevity awards recognizing their commitment to the Tauber Institute’s mission through their team project partnerships. Stanley Black & Decker and Target reached a milestone of five years of team project sponsorship and Steelcase reached a milestone of ten years of sponsorship.

Tauber Alumni Board President Andrew Burgess virtually awarded two scholarships of $5000 each to students who demonstrate excellence in leadership and engagement in Tauber Institute activities. Congratulations to Katie Cameron (MBA) and Michelle Pawlow (EGL BSE Environmental Engineering/MSE Industrial and Operations Engineering).

The annual Spotlight! event is a competitive presentation of operations solutions developed by Tauber Institute student teams during their 14-week team projects at top companies across the U.S. and around the world. A panel of distinguished judges from diverse industries selects the prize winners.

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 First Place: 2020 Anheuser Busch InBev Marcos Coppa (MBA) Murat Johnson (MBA) Michelle Pawlow (EGL BSE-EnvE/MSE-IOE)  Second Place: 2020 Boeing 737 Andi Bustamante (MBA & MS ENVRO) Haley Clafton (EGL BSE-ME/MSE-IOE) Felipe Grossi (MBA) Cross Pagano (EGL BSE/MSE-IOE)  Third Place: (tie): Boeing Quality Transformation Klara Mateju (EGL BSE/MSE-IOE) Hanna Vincent (MBA)  Third Place: (tie): Pfizer, Inc. Anubhav Gupta (MSE-IOE) Casey Carlson (MBA)  Alumni Scholarship: Recipients Michelle Pawlow (EGL BSE Environmental Engineering/MSE Industrial and Operations Engineering) and Katie Cameron (MBA).

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SPOTLIGHT! 2021 YEAR

in REVIEW

We made an impact in our community.

This year, the Tauber Institute partnered with three local organizations to complete a total of four projects across two separate days. The partner organizations were: Detroit Food Academy, Detroit Area Pre-College Engineering Program and Mend on the Move.

“Tauber Community Service Day 2021 looked a bit different than usual since, following public safety precautions, this year’s community projects were conducted completely virtually.

While neither traditional nor ideal, the virtual format did offer several new opportunities.

First, some of the projects presented by the community partners were more high-level and managerial than they traditionally are, challenging the Tauber students working on those projects to be imaginative and leverage skills outside of the traditional operations sphere while developing recommendations. Additionally, the virtual nature of the projects allowed Tauber Industry Advisory Board members to volunteer without needing to relocate, which provided a great opportunity for volunteer engagement at all levels of the institute. Finally, volunteers were able to practice actively leading and collaborating in a virtual environment, which will certainly be valuable skills moving forward in both academic and professional settings that continue to be impacted by the pandemic.

- Community Service Day Chair Celia Osman (EGL BSE/MSE-IOE ‘22)

We recognized and promoted operations excellence.

A panel of Tauber Institute business and engineering faculty selected the 52nd annual TIME Dealer of the Year Award finalists from each of the four National Automobile Dealer Association regions, and also the national award winner. In appreciation, TIME and Ally have established an annual scholarship at the Tauber Institute in the name of TIME, Ally, NADA, and the Dealer of the Year nominees.

The TIME Dealer of the Year Award is considered the most prestigious honor a new car dealer can receive, with fifty new car dealers – out of more than 16,000 dealers nationwide – nominated for the award. Tauber Institute faculty evaluated competitors on the business practices in their dealerships and on their contributions to their community.

Congratulations to the 2021 TIME Dealer of the Year, Richard DeSilva Jr., Liberty Subaru of Emerson, New Jersey.

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TAUBER INSTITUTE FOR GLOBAL OPERATIONS

2021 Student Employment

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We assessed operations across industries.

Tauber students graduated from the University of Michigan

98

%

Tauber Institute’s facility assessments expose students to and manufacturing processes practiced by a wide Employment ved inoperations the marketplace.

48 Tauber students received variety of organizations. Tauber students learn to perform and accepted a full-time rapid audittogether of the state of an operation, judge the relative offer of employment nt course a has brought students within 3 months of leanness of the operation, prioritize targets of opportunity ative product design competition. It has graduation. es, Wall Street Journal, and Businessweek. for improvement, and develop an action plan to facilitate of Tauber students* received employment *41 (out of 48) students shared their HT! 2019 offers from their project sponsor. those improvements. This academic year, the Tauber Institute tute, and in 2018-19 was taught jointly employment information. securedTharp a subscription to GBMP’s “LeanFlix” an on-demand s and Stephanie of the Stamps Year in Review streaming library of award-winning Lean training videos and List of Employers for the 2021 class educational content for Lean practitioners. Part of the LeanFlix Development in both the Fall and Pfizer, Inc. Canam Steel Corpora3M Company library includes Virtual Plant Tours, that provide insight into tamps School of Art & Design, College of QGenda LLC tion AB InBev operations lean market Roland Berger Capital One The Aerospace Corponess to work togetherand to develop SAP Dell, Inc. ration ection supported our students’ passions. manufacturing. processes, pricing, inventory, and Stanley Black & Decker Deloitte Consulting Amazon.com, Inc. analyzed eWe student teams demonstrated Students wereoperations able totheir new Texas Instruments End to End Analytics* American Airlines, Inc. ce.

United Airlines FCA Express Tauber Institute awards co-curricular funding grants that allow institute studentsAmerican to pursue around the world. see the improvements Veoneer General Electric Company ue academic and professional development opportunities. This academic year, the institute as if they had visited in Walmart, Inc. Google LLC Apple Inc. duct. Students designed and produced a ed Sarahstudents Ting (MBA '20)Spring to attend Falcon 9 Launch, and Michael Barnes The (MBA Tauber spent breakthe onOCO-3 a Wayfair LLC Hewlett-Packard Boeing Company daily tasksperson! that otherwise would require

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to attendInternational the AfroTech 2018 Conference Tauber Trek to examinein San Francisco, “a groundbreaking, revolutionary Whirlpool Corporation KLA Corporation Boston Consulting McKinsey & Company Group erience for Black techies, startups and entrepreneurs.” operations in Italy – specifically facilities Microsoft Corporation Cahoon Farms Bologna, Florence, Milan.

Students oinimprove physical andand mental health engaged in behind-the-scenes examinations *Acquired by Accenture last year. also competed for the inaugural Murphy Read about Michael Barnes’ of continuous improvement shed in memory of Michigan initiatives, alumna new experience here > technological developments, and the workforce am whose business plan best met bestcriteria, practices at the something 4 Madonnenew dell'Emilia ned brought the Tauber Institute, Rate Lean: Fast gives Dairy, Barilla, BorgWarner, Dolce & Gabbana, e field, and had the greatest chance "AfroTech was equally informative onals the skills needed to accurately evaluate Ducati Motorcycles, Ferrari, Lamborghini and mmercialization.

Congratulations to as well as inspiring. It is my hope fficiency from observations made during a Whirlpool.

Students also explored operations “Groovie” who impressed the judges I willtour. be speaking and leading Evaluate operations efficiency during a briefthat plant our.

Itexceptional describes inproduct detail how to plan a tour, at the Fashion Technology Accelerator, whose their development a workshop at AfroTech in the near ation, andis envision an idealand lean plant based mission toThe foster digital technology ach efforts! team worked directly future." – Michael Barnes epts of thethrough Toyota Production System. innovation in fashion, luxuryvisits and while retailPublished by the Tauber Institute, Rate Lean: Fast provides busy professionals the skills needed to preteens classroom industries. ng a wearable goal setting device thatperform a Rapid Plant Assessment. It describes in detail how to plan a tour, rate an operation, and utive-in-Residence Emeritus R. Eugene avatars to motivate their envision an ideal lean plant based on the concepts of the Toyota Production System. pgkids 14 to reach tTo described his Rapid Assessment view a short videoPlant about milestone.

002 the Harvard Business Review. More thefor international trek> Tauber Visiting Executive Emeritus R. Eugene Goodson first described his Rapid Plant Assessment plant andteam assessments later, Goodson k outtours the IPD process in 2002 for the Harvard Business Review. More than 1,000 plant tours and assessments accumulated data uct videos here > to create Rate Lean: pg 16 later, Goodson applied the accumulated data to create Rate Lean: Fast, combining clear, direct ing clear, direct instruction with numerous s, illustrations, and examples drawn from instruction with real-world examples drawn from his extensive experience in industry, government, titute students to pursue experience in industry, government, and and academia. Rate Lean: Fast is available for purchase through Amazon. mic year, the institute ichael Barnes (MBA pg 18 eaking, revolutionary Lean: Fast is available for I worked for NASA's Jethere Propulsion Laboratory hase through Amazon > on the Orbiting Carbon Observatory 3 (OCO-3) 20invited top back to mission....

I was lucky enough pg to be TAUBER.UMICH.EDU 9 Michael Barnes’ oin the here > team to watch it find its new home on the

nslated operations theory essional practice.

Rate Lean: Fast.

SPOTLIGHT! 2021 YEAR

in REVIEW

We created new products and thrived in the marketplace.

We learned directly from experienced leaders.

The Integrated Product Development course brings together students and faculty members from different disciplines for an innovative product design competition. It has been featured on CNN and written up in the New York Times, Wall Street Journal, and Businessweek.

The Tauber Leadership Speaker Series is a student-organized initiative to bring high-level executives to the University of Michigan to share insights about their careers, the qualities leaders need to succeed in today’s global economy, and the tangible steps students can take to achieve excellence in their own career paths.

The multidisciplinary course is managed by the Tauber Institute, and in 202021 was taught jointly by faculty members Eric Svaan of the Ross School of Business and Stephanie Tharp of the Stamps School of Art & Design.

This year, the University of Michigan offered Integrated Product Development in both the Fall and Winter semesters, allowing 10 teams of students from the Stamps School of Art & Design, College of Engineering, School of Information, and Ross School of Business to work together to develop market research, new product concepts, technical solutions, production processes, pricing, inventory, and advertising. Each semester culminated in a online trade show where student teams introduced their new products to potential consumers in a competitive marketplace.

Fall 2020 Product Challenge: Products to Reduce Isolation, Enhance Social Engagement Closing the THE CLOSING in Pandemic. Students were challenged to design a productdriven solution which addresses the problem of social isolation in pandemic conditions, by enabling increases in meaningful social engagement with other people. The solution might include service, technology, application and built environment features and should be suitable for use in household living circumstances.

DI STA NC E INTEGRATED PRODUCT DEVELOPMENT ONLINE TRADE SHOW

Winter 2021 Product Challenge: Self Sufficient and In Control.

Students were challenged to design a product-driven solution to help individuals gain an increased sense of self-sufficiency and life control.

Products included a handcrafted study tool (evertree), workout cards (FITT4U), a movement-sensing tile (micro-motives), and fall preventive device (Standalone).

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This year the series featured: “Leadership Lessons in Times of Radical Change”

Ram Kuppuswamy, Field Commerce Executive, Asia Pacific and Japan, VMware, Inc. Ram shared insights from his experiences in leading teams at organizations like Walmart, Nokia, and Airtel as they faced seismic strategic changes, volatile business environments, and unprecedented operational pressures.

“There are common leadership themes that emerge for successful teams in the midst of these challenges which have helped them be resilient and grow stronger. Over the years, I have had the incredible opportunity to learn through my personal failures and success stories.”

TAUBER INSTITUTE FOR GLOBAL OPERATIONS

Building Resilience for the New Normal The Tauber Institute welcomed keynote speaker Rebecca Liao Co-Founder and COO of Skuchain to highlight her experiences and perspectives on the theme of The New Normal, as well as how today’s trends will impact operations in the coming decade.

Panel Topic: “Role of Digitization on the Road to Supply Chain Recovery Post-COVID” With a nearly universal equation of digital supply chains with more resilient organizations, this panel explored how cutting-edge digital technologies are changing the supply chain game for good, while also emphasizing the particular competences that might shape the quintessential resilient enterprise in the near future.

Moderated by M.S. Krishnan, Associate Dean, Executive Education and Executive-MBA, Accenture Professor of Computer Information Systems and Professor of Technology and Operations at the Ross School of Business.

The panel included: Josh Mellinger, Sustainability & Fresh Food Supply Chain Leader (Senior Engagement Manager), Deloitte Consulting Anil Sebastian, Director, Data Science & Analytics, Microsoft

Ayush Marthur, Senior Business Efficiency Consultant, Blue Cross Blue Shield

The Future of Mobility Industry Panel Moderated by Joline Uichanco, Assistant Professor of Technology and Operations, Ross School of Business.

The themes discussed ranged from the very definition of what the future looks like to the biggest challenges/ opportunities for companies and students. The panelists also answered student questions.

Speakers included: Angela Flood, the Director of Business and Economic Development at the American Center for Mobility.

Russell Hensley, Partner, McKinsey & Company

Doug Mehl, Partner and America’s Lead, Automotive and Industrials Practice, AT Kearney

Kunal Vora, Senior Manager for Supply Chain Quality Operations and Programs, Tesla

Jim Morgan, Interim-COO at Rivian and Senior Advisor at The Lean Enterprise Institute

Matt Schnugg, Vice President Engineering – Data Science & Analytics, GE Digital

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SPOTLIGHT! 2021 Tauber Alumni Make a Lasting Impact The Tauber Institute philosophy reverberates across industry though our dynamic community of alumni.

Our alumni make a positive impact on the practice of operations worldwide, and they give back to the next generation of Tauber students. They provide financial support through the annual Tauber Alumni Scholarship awards, routinely offer insightful advice and student mentorship, and have become some of our strongest team project champions. This past year, alumni problem-solving skills proved indispensable as the Tauber Institute coordinated with sponsors to ensure students could have a rewarding 2021 team project experience, despite complications caused by COVID-19.

Alumni contributions to the Tauber experience ensure that we continue to be the Leaders & Best in the field of Operations.

“Never stop learning. I followed a fairly traditional path after Tauber and entered manufacturing. I thoroughly enjoyed it and kept finding myself getting pulled into the “gaps” between manufacturing and technology. I started studying and finding people who could help me better understand the underpinnings of how technology could enable more efficient operations. The next thing I know, I was offered a job to take over core technology operations and implement Lean concepts to drive process improvement. That led to more learning and pretty soon I had moved into the technology space entirely, eventually becoming the Chief Technology Officer for a couple of different companies. The knowledge gained at Tauber across business, engineering, product and technology was key to my ability to make this transition.”

Dan Muir (MBA ‘03 / MSE-IOE ‘03) Chief Technical Officer and Chief Information Security Officer at Archimedes

“Being ops driven gives me another set of eyes to tackle the problem by focusing on the root cause, stabilizing and streamlining the process while taking a data driven and hypothesis-based problem-solving approach.”

Adam Zhang (MBA ‘18) Business Planner at Microsoft’s headquarters in Redmond, Washington

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“Knowledge of operations is very important as it can influence many aspects of problem solving and strategy... Even when not working on operations topics, this understanding has been key to my success as a strategy professional.”

Suman Mishra (MBA ‘06) CEO Mahindra Electric Mobility Limited

“I’ve found the cross-functional training at Tauber to be invaluable in collaborating with business partners across all types of teams. The broad perspective from Tauber helps break down barriers, increase understanding, and build more effective solutions. Everyone fails and makes mistakes. Don’t waste a good crisis. It is how we react to the mistakes that make us stronger. Work hard to understand people’s career goals; help them create a plan to achieve their dreams. It takes commitment but is extremely rewarding.”

Jaime McPherson (BSE-ME / MSE- MEng MFG ‘95) Director of Engineering, Research & Development at La-Z-Boy

“Know that you can go from an engineering position to finance because of the quality of the education and experience and network of Tauber.”

Sherry House (MBA/MSE-Mfg ‘98) Chief Financial Officer, Lucid Motors

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SPOTLIGHT! 2021 Several members of the Tauber Industry Advisory Board (IAB) shared insights on the challenges they and their organizations have been facing during the COVID pandemic. While some topics were specific to an organization or industry, broad themes — and useful lessons — emerged.

Navigating COVID:

Challenges, Lessons, and New Possibilities In the early days of the COVID pandemic, as an increasingly troubling and rapidly changing flood of information flowed from governments, health officials, and media outlets throughout the world, businesses gave urgent attention to their own communication practices and tools. Brian Tauber (CPP Global) noted the importance of communicating personally and empathetically with his employees worldwide: “I make videos [distributed via text] so every employee will hear messages directly from my mouth, can see my eyes and hear my tone . . . The employees are scared for their safety, their paychecks, and their healthcare. Everything else pales in comparison. My messages address their concerns, not extraneous topics about the company or my efforts.” Tauber also touched on the importance of being clear about the priorities of the organization and using them to frame every message. Tauber closed with, “As a leader, I feel the weight of responsibility unlike any other time in my career.”

The health and safety of employees as a top priority was a thread that ran through all the responses from Tauber Industry Advisory Board members, along with a heightened recognition of the importance of considering mental health. Jeff Tazelaar

Borg Warner - Personal protection equipment (ppe) donation to Beaumont Hospitals which included 7,500 N95 masks, 1,500 protective goggles, and 1,500 disposable gowns.

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(Dow) said, “Bringing that ‘we’re all in this together’ mindset and truly having open discussions about health and well-being, especially mental health, was a positive shift. It blew the taboo of mental health and allowed us to really talk about it.”

Joe Dudas (Mayo Clinic) cited using a staff rotation plan to avoid overtaxing key personnel when running 24/7 operations.

Piyush Bhargava (Dell) noted that Dell encourages team members to prioritize their life-work balance and take time off to rest and recharge, while Robert Noack (Pfizer) welcomed the greater sense of empathy and flexibility that has emerged during the pandemic.

{ } We have embraced the concept that work isn’t a place and time but an outcome.

As organizations adapted to an explosion of employees working remotely at least part of the time, flexibility and agility—of both the organization and employees themselves—became more important, and a commitment to continue hybrid work options post-pandemic was common. In many cases, some already existed. For example, Randall Scheps (Howmet) pointed out that Howmet’s large sales force is dispersed around the country and has always worked from home. The option for other employees to work remotely two days a week will probably be permanent. Piyush Bhargava (Dell) said, “Before March 2020, 65% of team members worked in a flexible way on any given day and 30% worked remotely. When the pandemic started, our fully remote workforce catapulted to 90% in a weekend and most of these employees are still remote today. Bhargava shared that, in a survey of Dell global team members, almost 90% of respondents said they preferred a mix of onsite and offsite working.

“We have embraced the concept that work isn’t “We saw COVID coming from a place and time but an outcome,” he said.

Along similar lines, Robert Noack (Pfizer) said, “We embraced the ability to get work done from anywhere.” Noack said that Pfizer already had a good infrastructure with many meeting options, but virtual meetings and instant messenger communications have taken off during the pandemic. On pandemic-influenced changes in how Pfizer does business, Noack said, “It’s a testament to flexibility in terms of how we are able to accomplish what we needed to wherever we were; it changed what we can accomplish from where. It reinforced the hybrid setup— we had a core of people on-site, and those who could do off-site did so.” All respondents emphasized that adaptations were made on a team-by-team basis.

our units in China at the end of 2019 and early in 2020 . . . we could watch it coming across the world.” (Tazelaar)

“At first, we thought it would be temporary.” (Noack) “The scale and speed required to manage through COVID necessitated on-the-fly changes and new learnings.” (Dudas)

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SPOTLIGHT! 2021 Challenges, Lessons, and New Possibilities (cont’d) The widespread adoption of hybrid and remote work options has led to changes in hiring practices. Joe Dudas (Mayo Clinic) shared that, “We have changed our staffing criteria to ensure workers are a good fit for teleworking/remote work; we are probing on remote work skills and experience.” Piyush Bhargava (Dell) identified a bright spot: “Remote work allowed us to expand our talent pool. We can hire regardless of location—creating opportunity among various communities not tied to a specific location.” Other hiring adaptations mentioned included virtual orientations and assigning a team member to help a new hire with questions and introductions. Christopher Lanker (BorgWarner) said that all new employees gained with the acquisition of Delphi Technologies received a care package to welcome them to the team and an invitation to a virtual welcome event.

“The disruption in the supply chain is something that has touched every company and industry at some point during this pandemic.”

(Lanker) “People are smart and deserve the truth, even when it’s not what they want to hear.” (Tauber)

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Respondents cited existing elements at their respective organizations that undergirded the many adaptations responding to a pandemic requires, e.g., a culture of innovation, robust digital systems, and previous investments in automation and replenishment technology. Christopher Lanker (BorgWarner) said, “Our company has always been nimble in large part due to our decentralized operating model . . . This drives the decisionmaking capability down through the organization, into the hands of every employee.”

How work gets done has changed more dramatically in the last eighteen months than anyone could have imagined. Going forward, flexibility and agility will continue to be the watchwords.

TAUBER INSTITUTE FOR GLOBAL OPERATIONS

BorgWarner - Seneca, SC, plant that was hit by a tornado in the midst of the pandemic.

Story Participants Piyush Bhargava (IAB Vice President), Vice President, Global Care, Customer & Finance Services, Dell Inc.

Robert Noack, Senior Director, Pharmaceutical Sciences, Drug Product Supply, Pfizer Inc.

Joe Dudas (IAB Vice President), Vice Chair, Supply Chain Management, Mayo Clinic

Randall Scheps, President, Howmet Wheel Systems

Christopher Lanker, Vice President and General Manager, Emissions, Thermal and Turbo Systems, Asia Pacific, BorgWarner

Jeff Tazelaar, Digital Fulfillment Center Director, The Dow Chemical Company

Brian Tauber, CEO, CPP Global

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SPOTLIGHT! 2021 Tauber Industry Advisory Board The Industry Advisory Board (IAB) ensures the Tauber Institute stays at the forefront of multidisciplinary operations and responds quickly to industry needs. Offering guidance and support consistent with the program’s mission and objectives, the IAB actively assists the institute in achieving its academic and research goals through industry leadership, cooperation, feedback, and acquisition of financial support.

3M Company, Doug Lane, Global Director Amazon, Marcos Purty, Vice President of Ops Customer Fulfillment American Industrial Partners, Danny Davis, Partner American Securities, David Horing, Managing Director Beyond Meat, Sanjay Shah, Chief Operating Officer BLT Ventures LLC, Brian Tauber, CEO The Boeing Company, Jason Clark, Vice President and General Manager 777 Program Boeing Commercial Airplanes BorgWarner Inc., Christopher J. Lanker, VP and GM, Emissions, Thermal and Turbo Systems, Asia Pacific Cardinal Health, Meredith Rarey, Vice President, Global Strategic Sourcing ConAgra Brands, Craig Weiss, Vice President of Supply Chain Planning, Programs & Logistics Dell Inc., Piyush Bhargava, Vice President Global Operations The Dow Chemical Company, Jeff Tazelaar, Digital Fulfilment Center Director DTE Energy, Sharon Pfeuffer, Acting Vice President of Distribution Engineering and Construction Ford Motor Company, Ron Johnson, Global Director, New Model Programs

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General Motors Company, Jorge Ramirez, Global Director and Chief Manufacturing Cybersecurity Officer Howmet, Randall Scheps, President, Howmet Wheel Systems Infosys Limited, Sriram Panchapakesan, Vice President and Global Head for Engineering Consulting Kearney Inc., Doug Mehl, Partner Mayo Clinic, Joe Dudas, Vice Chair, Supply Chain Management McKinsey & Company, Russell Hensley, Director Microsoft Corporation, Andy Miller, Director of Business Development, Field Enablement & Scale National Center for Manufacturing Sciences, Lisa Strama, President & CEO PepsiCo, Tim Carey, Vice President for Sustainability and Consumer Recycling Pfizer Inc., Robert Noack, Senior Director, Pharmaceutical Sciences, Drug Product Supply Steelcase, Tom Dawson, Vice President, Global Operations Services Target Corporation, Heath Holtz, Senior Vice President, Field Operations Tauber Enterprises, Joel Tauber, President Whirlpool Corporation, Mike Cukier, Principal Engineer

TAUBER INSTITUTE FOR GLOBAL OPERATIONS

Doug Lane 3M Company

Marcos Purtty Amazon

Danny Davis American Industrial Partners

David Horing American Securities

Sanjay Shah Beyond Meat

Brian Tauber BLT Ventures LLC

Jason Clark The Boeing Company

Christopher J. Lanker BorgWarner Inc.

Meredith Rarey Cardinal Health

Craig Weiss ConAgra Brands

Piyush Bhargava Dell Inc.

Jeff Tazelaar The Dow Chemical Company

Sharon Pfeuffer DTE Energy

Ron Johnson Ford Motor Company

Jorge Ramirez General Motors Company

Randall Scheps Howmet Aerospace

Sriram Panchapakesan Infosys Limited

Doug Mehl Kearney Inc.

Joe Dudas Mayo Clinic

Russell Hensley McKinsey & Company

Andy Miller Microsoft Corporation

Lisa Strama National Center for Manufacturing Sciences

Tim Carey PepsiCo

Robert Noack Pfizer Inc.

Tom Dawson Steelcase

Heath Holtz Target Corporation

Joel Tauber Tauber Enterprises

Mike Cukier Whirlpool Corporation

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SPOTLIGHT! 2021 Education in Action Tauber team projects provide students with opportunities to tackle operations-related challenges at top companies. Over the summer, 56 business and engineering students worked on 25 team projects sponsored by 20 global firms.

Tauber team project sponsors are leaders in a wide range of industries, including aerospace, internet commerce, high tech, automotive, energy, and retail. The institute is pleased to strengthen relationships with our 2021 project sponsors: American Industrial Partners, Amazon.com Inc, Beyond Meat, The Boeing Company, Brunswick Corporation, Curation Foods, Estee Lauder, Ford Motor Company, General Motors Company, Herman Miller, Howmet Aerospace, Mayo Clinic, C.S. Mott Children’s Hospital, National Center for Manufacturing Sciences, PepsiCo, Inc., Pfizer, Inc., Stanley Black & Decker, Stoneridge, Target Corporation, and The Whirlpool Corporation.

Tauber students addressed substantive issues such as lean process design and implementation, manufacturing site strategic assessment, supply chain implementation, strategic capacity analysis, material handing redesign, new product development strategy, product complexity analysis, manufacturing process design, and machine learning and advanced analytics.

A successful project results in a significant return on a sponsoring company’s investment. Initial sponsoring company calculations indicate the 2021 Tauber team projects averaged $43 million per project savings over three years. The projected savings total was $989 million. This excludes one Tauber Project which created an estimated $1+ billion dollar additional revenue generation.

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SPOTLIGHT! 2021 Cultivating Thought Leadership DEGREE PROGRAMS ASSOCIATED WITH TAUBER Tauber Institute students are admitted through either the College of Engineering or the Stephen M. Ross School of Business.

They bring with them significant experience in fields such as product engineering, manufacturing, and consulting. Most Tauber students also have undergraduate training in engineering or other technical fields. They have made a substantial commitment to careers in operations or manufacturing and pursue an education specifically designed to meet the needs of today’s firms.

All Tauber students are enrolled in one of the following degree programs: ROSS SCHOOL OF BUSINESS Master of Business Administration (MBA) This two-year program prepares students to accept general management leadership positions. The Tauber program includes a sequence of operations management, supply chain, and manufacturing-related engineering courses.

COLLEGE OF ENGINEERING Engineering Global Leadership Honors Program (EGL) This five-year honors program prepares students to enter a variety of firms as engineers, while giving them the necessary management skills to quickly assume business leadership roles. A highly valued element of this program is a cultural concentration in a global region of choice. The EGL program leads to both a BSE and MSE. Engineering Graduate Programs (EGP) A graduate-level engineering degree program in any engineering discipline that, coupled with the Tauber requirements, provides intensive course work in operations and manufacturing technologies paired with business electives courses.

EGP students are pursuing MEng, MSE, PhD, or Doctor of Engineering degrees.

RECRUITING STUDENTS The Spotlight! Competition is one way to introduce yourself and your organization to the Tauber Institute’s supremely qualified candidates. Some recruitment opportunities are listed below: • Individual interviews with students.

• Post job openings on the institute’s website, accessed by current students as well as our expanding network of 1500+ alumni.

• A connection to career centers and employment events at the College of Engineering and the Ross School of Business.

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• Access to the Tauber Institute’s Student Advisory Board, which can assist you in developing networking opportunities such as tailgates, receptions, and speaking engagements.

TAUBER INSTITUTE FOR GLOBAL OPERATIONS

THE TAUBER ADVANTAGE Team projects are just one way that Tauber students distinguish themselves from other business and engineering graduates. Tauber programs and courses also enhance their employability: • The LeadershipAdvantageSM program of learning modules and workshops emphasizes leading and influencing an organization through collaboration, creativity, communication, and analytics.

• Facility assessments deliver insight into operations and lean manufacturing. Students learn to perform a rapid audit of the state of an operation, judge the relative leanness of the operation, prioritize targets of opportunity for improvements, and develop an action plan to facilitate those improvements.

• The Global Operations Conference brings leaders in industry and academia together to strategize new ways to advance the practice of operations worldwide.

• The Leadership Forum allows Tauber students to learn about ethical leadership directly from current leaders in operations from top global firms.

• Tauber students are encouraged to give back. Each year, on Community Service Day, they apply what they’ve learned to address operations challenges at southeast Michigan nonprofits.

Many Tauber students assume leadership roles in organizing the Global Operations Conference, Leadership Forum, and Tauber Leadership Speaker Series, gaining valuable experience in the complexities of event planning, and developing rapport with the seasoned executives they bring to campus. Student groups plan Tauber’s Community Service Day and organize networking events, and Student Advisory Board members work closely with Tauber leadership to strive for continuous improvement in our own operations.

• The Tauber Leadership Speaker Series invites high-level executives to share insights with students about their careers, the qualities needed in today’s global economy for strong leadership, and tangible steps students can take to achieve excellence in their own career paths.

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SPOTLIGHT! 2021 TAUBER STUDENTS AMAZON.COM, INC. - CANADA

Ayush Gupta MBA

Santhosh Narayanan EGL BSE IOE/ MSE IOE

Pg. 33

Pg. 34

AMAZON.COM, INC. - MAINTENANCE

Kazuma Katsuki MBA

Deep Patel MSE Nuclear Engineering

Pg. 36

Pg. 37

AMAZON.COM, INC. - NEW SITE

David Lee MBA

Christina Weiberg MBA

Pg. 39

Pg. 40

AMAZON.COM, INC. - ROBOTICS

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Shreyas Parab MSE IOE

Jackie Whittaker MBA

Pg. 42

Pg. 43

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AMERICAN INDUSTRIAL PARTNERS Alyssa Dern EGL BSE IOE/ MSE IOE

Aaron Kaplan MBA

Pg. 45

Pg. 46

BEYOND MEAT

Gilbert Pasquale MBA

Channing Wan EGL BSE IOE/ MSE IOE

Pg. 48

Pg. 49

THE BOEING COMPANY – DELIVERY OPERATIONS

Benjamin Hambleton MBA

Ryan Skorka EGL BSE AERO/ MSE IOE

Tomás Vonderheide EGL BSE IOE/ MSE IOE

Pg. 51

Pg. 52

Pg. 53

THE BOEING COMPANY – SUSTAINBABLE MATERIAL Alli Lesovoy MBA & MS Environmental Sustainability

Josh Reid MBA

Noah Zaatar EGL BSE ME/ MSE IOE

Pg. 55

Pg. 56

Pg. 57

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SPOTLIGHT! 2021 TAUBER STUDENTS THE BOEING COMPANY – WAREHOUSING Zackary Simmons EGL BSE IOE/ MSE IOE

Venkat Subramaniam EGL BSE AERO MSE AERO

Pg. 59

Pg. 60

Jian-Liang Lin MBA

Jack Simmons MBA MSE IOE

Sharon Sun EGL BSE IOE/ MSE IOE

Pg. 62

Pg. 63

Pg. 64

BRUNSWICK

CURATION FOODS, INC.

Brody Bushnell MBA & JD

Dean Golan EGL BSE IOE/ MSE IOE

Pg. 66

Pg. 67

ESTEE LAUDER

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Shreya Agrawal MSE IOE

Claire Covner MBA

Pg. 69

Pg. 70

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TAUBER INSTITUTE FOR GLOBAL OPERATIONS

FORD MOTOR COMPANY Michael Fanelli EGL BSE ME/ MSE ME

Matt Rosales MBA

Pg. 72

Pg. 73

GENERAL MOTORS COMPANY Mabel Chan EGL BSE CS/ MSE CSE

Konstantinos Chiotinis MBA

Soo Yeon Lee EGL BSE CS/ MSE CSE

Pg. 75

Pg. 76

Pg. 77

HERMAN MILLER

Michael Krasnor MBA MSE IOE

Felice Mueller MBA

Emmett Springer EGL BSE BioMed/ MSE IOE

Pg. 79

Pg. 80

Pg. 81

HOWMET AEROSPACE Vedant Kanyaboiena MEng in Automotive Engineering

Jason Miller MBA

Pg. 83

Pg. 84

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SPOTLIGHT! 2021 TAUBER STUDENTS THE MAYO CLINIC

Andrew Johnston MBA

Amalia Siavelis EGL BSE BME/ MSE IOE

Pg. 86

Pg. 87

C.S. MOTT CHILDREN’S HOSPITAL

Fernando Espino Casas MBA

Matthew Shannon EGL BSE CE/ MSE CSE

Pg. 89

Pg. 90

NATIONAL CENTER FOR MANUFACTURING SCIENCES

Bryce Garver MBA

Elizbeth Rubenson EGL BSE BME/ MSE BME

Pg. 92

Pg. 93

Tom Kraeutler MBA & MS Environmental Sustainability

Jack Riley EGL BSE CIVIL/ MSE CIVIL

Pg. 95

Pg. 96

PEPSICO, INC.

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PFIZER, INC.

Lyndy Burnett MBA

Jackson Cummings EGL BSE IOE/ MSE IOE

Pg. 98

Pg. 99

STANLEY BLACK & DECKER

Janice Lau MSE IOE

Akshay Seth MSE IOE

Pg. 101

Pg. 102

STONERIDGE, INC.

Oluwabunmi Fatodu MBA

Sasanka Neti MSE IOE

Pg. 104

Pg. 105

TARGET CORPORATION

Jen Garb MBA

Celia Osman EGL BSE IOE/ MSE IOE

Parsa Shoa EGL BSE CS/ MSE IOE

Pg. 107

Pg. 108

Pg. 109

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SPOTLIGHT! 2021 TAUBER STUDENTS WHIRLPOOL

30

Margaret Kirk MBA

Matthew Rodeman EGL BSE EE/ MSE EE)

Pg. 111

Pg. 112

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SPOTLIGHT! 2021 AMAZON - CANADA Alternative Fulfillment & Labor Planning Solutions for the Greater Vancouver Area

AMAZON.COM, INC. CANADA

Student Team: Ayush Gupta – Master of Business Administration Santhosh Narayanan – EGL (BSE & MSE in Industrial and Operations Engineering) Project Sponsors: Sumegha Kumar – Director of Canada Customer Fulfillment (CACF) Operations Anshuman Kumar – Director Regional Operations Arun Srivastava – General Manager of Fulfillment Center Operations Faculty Advisors: Mark Daskin – College of Engineering Stefanus Jasin – Ross School of Business Amazon.com, Inc. is a multinational technology company with a valuation of $1.7 trillion. It is the number one visited online retail site in the US with a growing global presence. Amazon owns and operates its own complex logistics network that ensures fast and accurate delivery of their products in an effort to be “the most customer centric company in the world”. Products ordered on Amazon are generally processed and packaged at Amazon owned fulfillment centers (FC), then shipped out to the customer. FCs are critical to the speed of delivery as they allow for better placement of products near the customer.

Canadian Customer Fulfillment (CACF) has struggled with the Vancouver region as they are unable to build large FCs to support the 70% YoY growth in demand. Amazon is unable to build more FCs due to two main challenges: rising real estate costs and a limited pool of relevant workforce. As a result of limited FCs in Vancouver and understaffing within FCs, only 30% of demand is fulfilled in local FCs. The remaining 70% of demand is long-zoned (fulfilled in East Canada and shipped to the West) resulting in high shipping costs.

To address this concern, the Tauber team developed strategies to retain and attract labor and move fulfillment outside of traditional fulfillment centers. First, the team analyzed the effects of increased wages, better benefits, and attendance policies on Labor Order (LO) fill. Second, the team identified automation opportunities within FCs to reduce Amazon’s dependence on labor. Finally, the team explored external fulfillment strategies in developing markets such as India, Brazil, UAE, etc. and devised a launch & expansion plan for two external fulfillment programs in Canada.

The team’s recommendations consisted of a wage increase, transitioning to a new, rewarding attendance policy, the development of affordable housing to attract new labor, the implementation of five automation technologies in FCs, and the launch of two external fulfillment channels. Multiple analyses were conducted on the operational and financial viability of our recommendations.

The Tauber team’s recommendations to help Amazon’s Canadian Customer Fulfillment department better staff fulfillment centers and optimize cube space in Vancouver is expected to yield an extra 15,598 labor orders filled, 202K ft3 reduction in cube requirement, and a total of $142M in cost savings on reduced attrition, increased productivity, and decreased long-zoning over three years.

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AMAZON.COM, INC. Dynamic Preventative Maintenance

Student Team: Kazuma Katsuki – Master of Business Administration Deep Patel – Master of Science in Engineering in Nuclear Engineering Project Sponsors: Bobby Singh Samra – Regional RME Manager Faculty Advisors: Shima Nassiri – Ross School of Business Prakash Sathe – College of Engineering Amazon Logistics (AMZL) Reliability and Maintenance Engineering (RME) team oversees to lead a large maintenance team that is responsible for maximizing equipment uptime, ensuring equipment maintenance, and leading improvement projects in a fast-paced, dynamic work environment within Amazon Last Mile Delivery stations. AMZL network is growing rapidly at a pace of 89% YoY growth rate. This rapid expansion has led to increased complexity within the delivery station network which in turn has led to emergence of varied types of issues across RME operations.

AMAZON.COM, INC. MAINTENANCE

The goal of the project is to create a logic and a process to optimize AMZL’s current conveyance Preventive Maintenance (PM) Plan, as opposed to being at fixed intervals based on Original Equipment Manufacturer (OEM) recommendation. The current PM Plans can cause equipment to be under/over maintained, adversely affecting operational efficiency.

The Tauber team has proposed the Risk and Cost Minimizing Cadence (RCMC) model to optimize the PM cadence. Across AMZL, the savings from RCMC result in a 3-year Net Present Value (NPV) of $23.0M: coming from $7.9M of increased RME Technicians productivity YoY and breakdown reduction savings of $496.7k YoY. This optimization is based on a logic driven by risk of breakdown and costs associated with PMs and breakdowns. The RCMC is strategically customized to site-specific characteristics. Each RCMC Strategy is applicable to a subset of AMZL sites classified by factors like conveyance OEM and an average number of packages processed in a day at one site.

The proof of concept is being verified by piloting RCMC Strategies at 10 AMZL sites. The pilot is designed to be six months long due to the longitudinal (long-term effect) nature of this study. The preliminary result from the first three weeks is a statistically significant 45.5% reduction of breakdown rate (breakdowns per equipment per month) compared to the pre-pilot breakdown rate across the Pilot sites. To circumvent the time limitation, an analytical model was used to quantify the reduction in breakdown rate. The model predicts a 31.6% reduction in breakdown rate.

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SPOTLIGHT! 2021 AMAZON – NEW SITE New Site Launch

Student Team: David Lee – Master of Business Administration Christina Weiberg – Master of Business Administration Project Sponsor: Mike Curry – Launch Program Manager, NACF Team Lead Faculty Advisors: Debra Levantrosser – College of Engineering Eric Svaan – Ross School of Business Amazon is dedicated to creating the best customer experience by providing a shorter lead time of packages based on expanded operational capabilities. To make the package shipment process efficient and maximize customer satisfaction, the Amazon Robotics Sort Centers (ARS) and Inbound Cross Docks (IXD) play a central role by automatically sorting inbound merchandise and speedily delivering outbound packages to the next fulfillment step, using industry-leading robotics and conveyors technologies. ARS and IXD are the most technologically-advanced Amazon fulfillment centers.

The RME Launch team is in charge of launching new Amazon sites and the NACF business division manages ARS and IXD’s launch process. As the launch process involves ensuring equipment and staffing readiness among supply chain disturbances and labor shortages in 2021, it is mission-critical for the launch team to improve process efficiency, to have visibility on the process, and to mitigate risks that delay site launches.

AMAZON.COM, INC. NEW SITE LAUCNCH

The Tauber team tackled five major challenges that affect the entire launch process: streamlining the Road-toLaunch process, creating an automated dashboard for site contacts, establishing effective technician training plans, providing risk mitigation plans, and creating and deploying launch processes in Mexico and Brazil. The Roadto-Launch is a launch process management tool with a check-list, and the Tauber team improved the process by 26%. The Tauber team created an integrated site contacts dashboard by using SQL and AWS Quicksight in order to provide clear lines of communication with launch managers. The Tauber team also bridged the gap between training plans and staffing challenges, which has caused low training seat utilization, by creating new synchronized training plans. Last, the Tauber team leveraged aforementioned process improvements to contribute to process creation and deployment in Mexico and Brazil.

By streamlining the RME processes, improving visibility on resources, establishing clear communication lines via AWS dashboard, and establishing risk mitigation plans, the Tauber team’s plan is expected to reduce yearly launch costs by $1,440,000. Also, 25% of cost savings is projected via synchronized training plans for technicians by increasing training seat utilization from 25% to 50%. Additionally, the Tauber team established systematic launch and start-up processes in Mexico and Brazil by providing performance metrics, training plans, and a recommended spare parts list. Tauber deliverables are under RME’s review and will be deployed soon. Based on the RME team’s 10% year-to-year growth projections of newly-launched sites within 3 years, the Tauber team’s impact is expected to be greater in the near future.

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AMAZON - ROBOTICS Developing A Supplier Assessment Framework

AMAZON.COM, INC. ROBOTICS

Student Team: Shreyas Parab – Master of Engineering in Industrial & Operations Engineering Jackie Whittaker – Master of Business Administration Project Sponsors: Mike Anderson – Senior Manager, Technical Operations Paul Seay – Senior Manager, Advanced Manufacturing Engineering Faculty Advisors: Ravi Anupindi – Ross School of Business David Kaufman – College of Engineering Amazon Robotics (AR) is a subsidiary of Amazon.com, Inc., responsible for providing automation and robotic integration within Amazon’s fulfilment, sortable, and last mile delivery centers. AR designs, manufactures, and tests warehouse robotics solutions. Amazon has 175+ fulfillment centers, of which AR services 50+ as robotic fulfillment centers. To support an upcoming 100+ site launches over the next year, AR is rapidly expanding in complexity and volume.

To meet the pressures of AR’s rapid growth and scope expansion, AR charged the Tauber team to develop a holistic framework for supplier selection that enhances the decision-making process, mitigates biases in supplier selection, and supports the planned expansion of the supplier base by 2x year over year. While each decision-maker in the supplier selection process offers a unique and important perspective, AR lacks a structured method to capture these stakeholders’ judgement, make trade-offs, and reach a consensus efficiently. To facilitate effective cross-functional decision-making at scale, the Tauber team’s primary goal focused on developing holistic assessment mechanisms.

The Tauber team used a DMAIC (Define, Measure, Analyze, Improve, and Control) approach to conduct 38 interviews with key stakeholders as part of a root cause analysis. The analysis identified seven common pain points and refined the following four recommendations through 3 pilot tests with different commodities: (1) implement go/no-go filters based on industry standards, (2) incorporate cross-functional criteria for holistic assessment, (3) implement an Analytical Hierarchy Process decision-making model to reduce biases through data-driven tools, and (4) use a Rapid Site Assessment tool to consistently assess efficiency and effectiveness.

By implementing the recommended mechanisms to establish data-driven processes and controls, AR will reduce the time and costs associated with searching for qualified suppliers, evaluating pre- assessment data, and conducting on-site audits with suppliers that do not meet AR’s standards. The benefits of implementing these piloted recommendations are reducing decision biases while improving agility and effectiveness in supplier selection.

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SPOTLIGHT! 2021 AMERICAN INDUSTRIAL PARTNERS (AIP) Additive Manufacturing Opportunity Identification

Student Team: Alyssa Dern – EGL (BSE & MSE in Industrial and Operations Engineering) Aaron Kaplan – Master of Business Administration Project Sponsors: Jeff Birenbaum – Partner (Operations) Daniel Davis – Partner (Operations) Dan Saberton – Engineering Manager Faculty Advisors: Damian Beil – Ross School of Business Grant Kruger – College of Engineering

AMERICAN INDUSTRIAL PARTNERS

American Industrial Partners (AIP) is an operationally-oriented middle market private equity firm that is distinctively focused on buying and improving industrial businesses with operations in the United States and Canada. Backed by AIP, ADDMAN Engineering leverages the expertise and knowledge of the mid-sized manufacturing companies in AIP’s portfolio to apply Additive Manufacturing (AM) and advanced technologies to enable breakthroughs in product development and manufacturing for their customers. ADDMAN currently operates facilities in Bonita Springs, FL and Westfield, IN. A critical component in the identification of additively manufactured parts is a deep knowledge and understanding of the technologies and its potential uses. ADDMAN had fewer than twenty employees across both locations and seeked to enhance their processes for part identification to improve sales performance and limit dependence on engineers. The company focused on expanding their customer base to all of AIP’s portfolio companies and needed assistance to quickly identify potential value within a company as well as specific parts that would be feasible to print.

To address this opportunity, the Tauber team accumulated knowledge from the ADDMAN team and relevant AIP portfolio companies to create a set of tools that could be used to decrease the time it takes for identification of 3D printing opportunities and assessment of value creation. These tools included discrete rapid (plant) assessments as well as an engineered sales questionnaire tool to comprehensively review a given company. The outputs of the tools included top value drivers, readiness for AM implementation, service fits within the company, specific opportunity areas, and immediate next steps for execution. The tools limited the need for a deep understanding of additive manufacturing. They also decreased the time and variability of the opportunity discovery process when engaging a potential new customer.

After assessing possible implementations for these tools, ADDMAN’s 3-year impact included additional revenue generation of up to $73M from improved lead conversion rates. ADDMAN also acquired value from reduced customer acquisition costs due to a 20% reduction in discovery time amounting up to $668K. The tools created by the Tauber team will be implemented immediately in ADDMAN’s operations.

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BEYOND MEAT Overall Equipment Effectiveness And Continuous Improvement

Student Team: Gilbert Pasquale – Master of Business Administration Channing Wan – EGL (BSE & MSE in Industrial and Operations Engineering) Project Sponsor: Victor Davis – Vice President of Internal Manufacturing Faculty Advisors: John Branch – Ross School of Business Debra Levantrosser – College of Engineering Beyond Meat is the first manufacturer of plant-based meat, having debuted its plant-based burger product in 2015. Since then, it has expanded its product offerings to include plant-based sausage, meatballs, chicken and many others. Its revenue grew to $400M in 2020 showing strong customer demand for this new category. In selling plant-based meat products, Beyond’s goals are multi-faceted: to improve human health, decrease the impacts of climate change, limit the reliance of humans on natural resources and respect animal welfare. Additionally, in 2020, Beyond expanded its footprint by adding three manufacturing sites. Amidst this growth, Beyond’s manufacturing team has committed to optimizing their production capabilities. The Tauber team was tasked with identifying and prioritizing opportunities to cut costs, as well as piloting one of the identified priorities.

To measure opportunities for improvement, the Tauber team leveraged the Overall Equipment Effectiveness (OEE) framework at the Devault, PA facility. OEE evaluates opportunities on a machine level by measuring availability, quality, and performance. The Tauber team manually measured OEE and provided recommendations for Beyond to automate OEE measurement long term. While measuring OEE, the Tauber team identified a specific machine on the plant floor that had significantly lower availability and performance. The Tauber team planned an Autonomous Maintenance Event (AME) and included the machine’s manufacturer, Devault’s management, the maintenance team, and the production team.

During the event, operators were trained on proper machine use, the technician inspected and made machine adjustments, and preventative maintenance was standardized. The Tauber team provided documentation and standard operating procedures following the event.

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BEYOND MEAT

By executing the AME, the Tauber team was able to improve the performance and availability of the machine and ultimately increase the output of the line. The team also recommended additional strategies to improve OEE including rotating operator breaks and adding a pull system between two process steps. With these improvements, Beyond can expect $3.3M in savings and 35M lbs of additional product produced over the next three years at the Devault facility.

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SPOTLIGHT! 2021 THE BOEING COMPANY – DELIVERY OPERATIONS Production System Stability through Structured Problem Solving

BOEING COMPANY DELIVERY OPERATIONS

Student Team: Benjamin Hambleton – Master of Business Administration Ryan Skorka – EGL (BSE Aerospace Engineering & MSE in Industrial and Operations Engineering) Tomás Vonderheide – EGL (BSE & MSE in Industrial and Operations Engineering) Project Sponsors: Michael Martinez – One BPS Integrator, BCA Delivery Operations Craig Trewet – Boeing Production System Leader, BCA Delivery Operations Faculty Advisors: Richard Hughes – College of Engineering Tariq Mughal – Ross School of Business The Boeing Company is the world’s largest aerospace company whose aircraft comprise more than 50% of the global fleet of active commercial jetliners. In recent years, Boeing’s ability to deliver airplanes has been unstable due to the global COVID-19 pandemic and quality defects found in their 737 MAX and 787 airplanes. During this period of lower production rates, One Boeing Production System (One BPS) was initiated in 2019 to stabilize, standardize, and continuously improve the production system by aligning to common practices, Lean principles, and systematic problem solving on the production line. The highest level of this problem-solving method is the Factory Support Collaboration Center (FSCC), which is an organization that solves Boeing’s toughest, most systemic problems through accelerated project management. To date, the FSCC has already generated hundreds of millions of dollars in savings annually for factory initiatives, however, the organization has not been used in delivery operations.

To bridge this gap, the Tauber team was asked to leverage the existing factory FSCC framework to lead the first three Delivery Center FSCC projects. First, the team facilitated a tooling redesign to eliminate a high safety crush hazard caused by the non-standard 767 wing stand insert design. This demonstrated to delivery center team members that the Boeing Problem Solving Model and flexible staffing effectively solved high-impact production system problems. Second, the team investigated the feasibility of weighing airplanes in the factory rather than later downstream at a bottleneck point of the build to balance the utilization of the production line. This particular effort helped reveal the need to prioritize Delivery Center FSCC projects by developing a “likelihood score” in the FSCC’s project prioritization tool. Third, the team led a root cause investigation in missing paint defects, the top driver of rework hours for 767 airplanes. This final pilot project not only revealed previously unknown defect root causes, but also ensured the Delivery Center FSCC was in a mature enough state to operate without the Tauber team’s leadership.

Through completion of the three pilot projects, the Tauber team prevented one severe injury per year, eliminated 20 hours of overtime per airplane, identified root causes for an average 100 hours of rework per airplane, and created the potential for a 4% throughput increase in directly attributable impact. Most importantly, the Tauber team paved the way for a functional FSCC in the delivery center to generate tens of millions of dollars in annual savings by efficiently solving the highest impact systemic issues faced on BCA delivery center production lines.

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SPOTLIGHT! 2021 THE BOEING COMPANY – SUSTAINABLE MATERIAL Sustainability Strategy Student Team: Allison Lesovoy –MBA and MS in Environmental Science Josh Reid – MBA Noah Zaatar – EGL (BSE Mechanical Engineering & MSE in Industrial and Operations Engineering) Project Sponsors: James Holden – Manager Amy Goodell – BCA Interiors / Payloads Engineer Kelsea Ballantyne – Leader BCA Product Development - Manufacturing Strategy and Sustainability Tia BensonTolle – Advanced Materials Faculty Advisors: Brian Love – College of Engineering Michael Metzger – Ross School of Business

BOEING COMPANY SUSTAINABLE MATERIAL

Climate change is a fundamental global challenge, and Boeing has taken the initiative over the last few years to become an industry leader in sustainability. Currently, the focus of sustainability within Boeing has been on reducing in-use emissions; the company has yet to put significant resources towards a clear strategy elsewhere in the lifecycle. Outside of in-use sustainability exists complex processes and long lead times to develop new materials and products, and industry solutions to supply chain sustainability are nascent.

The business world is adapting to climate change, and Boeing must follow suit. Boeing’s top investors have begun evaluating the sustainability of their companies to prioritize forward-thinking groups. A positive development in sustainability is also linked to positive business growth, so Boeing is motivated to accelerate their sustainability processes.

Sustainability is hardly a new phenomenon, and many analogous companies and industries have integrated innovative sustainability practices to gain a competitive advantage. A review of the top companies with supply chains similar to Boeing’s revealed that leaders in sustainability exhibited exceptional decision modeling, collaboration, and measurement and reporting.

Internally, Boeing has invested heavily in their up-and-coming sustainability office, and the company has mapped sustainability goals to reach their high expectations. Boeing has narrowed its focus on a few projects and forecasts that these will create a lasting industry impact. One area that has been specifically overlooked is cradle-to-gate, or the stages before Boeing receives the material at their factory gate.

The Tauber team was brought in to strategically evaluate and improve the sustainability of supply chain and product development for Boeing Commercial Airplanes. Through evaluation of this objective, the Tauber team has determined that no method to holistically evaluate the portfolio of sustainability projects to ensure the projects are completely exhaustive and that individual projects are funded according to their alignment to strategic goals.

To reach this goal, the Tauber team recommends a three-part approach to addressing this need, comprised of strategies to increase visibility, improve prioritization, and create alignment within Boeing’s sustainability efforts.

Firstly, to increase visibility, the Tauber team created a project portfolio dashboard to analyze the commitment towards sustainability across Boeing; the dashboard visualizes the current state of sustainability funding, the most prominent scopes, the strongest departments, etc. To improve prioritization, the team recommends the integration of sustainability considerations into the existing processes within Product Development. Lastly, to align each department, the team supports increasing communication and councils with other departments.

These recommendations create an avenue towards the ideal state for sustainability within Boeing. By increasing visibility, prioritization, and alignment for sustainability, executives will be empowered to collaborate towards a more complete understanding of Boeing’s current state of sustainability and the sustainability opportunities that exist. Project managers will understand where to invest their time and energy, saving Boeing millions of dollars.

With the Tauber team’s recommendations, Boeing will be one step closer to global leadership in sustainability.

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SPOTLIGHT! 2021 THE BOEING COMPANY — WAREHOUSING Warehousing Business Case Analysis Toolkit for The Boeing Company Student Team: Zackary Simmons — EGL (BSE Nuclear and Radiological Sciences /MSE in Industrial & Operations Engineering) Venkat Subramaniam — EGL (BSE & MSE in Aerospace Engineering) Project Sponsors: Satish Bapanapalli — Fulfillment Operations Leader J.S. Iwasaki — Director Supply Chain Logistics Scott Mercer — Director, Packaging & Logistics Stephanie Wang — Site Leader, PDX Decorative Paint & Delivery Faculty Advisors: Prakash Sathe — College of Engineering Brian Talbot — Ross School of Business

BOEING COMPANY WAREHOUSING

The Boeing Company (Boeing) is one of the world’s largest aerospace companies and a leading manufacturer of commercial jet transport aircraft, along with other products for the military, space and aircraft services industries.

As the aviation industry starts to recover from the COVID-19 pandemic, along with the return to service of the 737 MAX aircraft, Boeing seeks to meet the demand for more aircraft while minimizing costs, especially the costs associated with the production of its aircraft: warehousing, parts kitting, and delivery in support of the manufacturing line.

Currently, Boeing uses a decentralized network of 63 warehouses spread across the Puget Sound to store and kit parts into product specific totes, along with dozens of integration centers that assemble these totes into the final carts that are delivered to the manufacturing line. This process is complex and requires several delivery methods and many touches before a completed cart is delivered to the mechanic.

To alleviate the challenges brought on by this complex process, the supply chain organization is pursuing a radical transformation of the warehousing model, in which all the warehouses will be consolidated into two Regional Distribution Centers (RDC). Ideally, the RDCs will receive, store, kit, and integrate all parts required for a manufacturing job into a cart and deliver it straight to the manufacturing point of use. Additionally, the RDC will incorporate automated storage and retrieval systems, transportation automation, new IT systems that will enable better customer support, and a new process design.

As the supply chain organization pursued the RDC business case, it became evident that the improved process flow design will play a critical role in justifying the business case. We were brought in to help understand the impacts of process flow design on the overall business case. Our analysis of the business case showed that there was not clarity in how the process flow design will enable cost savings, quality improvements, and the reduction of safety incidences. An added challenge in clarifying the cost, quality, and safety improvement was the lack of detailed design for the new process, which is integral to how we could calculate and justify improvements.

Our solution to this problem was to develop a set of tools and methodologies with which the business transformation team can rapidly evaluate design ideas for the future state along the three improvement perspectives. The Marginal Cost Tool calculates the total costs associated with the production of the “next” cart in the current and future state, and can be used to calculate the magnitude of cost savings influenced by design changes. The Predictive Quality Tool calculates the average likelihood that a cart contains a quality defect and can be used to predict the changes in quality performance for the overall system. We also authored a Systemic Safety Handbook, which spotlights hidden areas in the fulfillment process that have potential for safety improvement and may occur in the future RDC process.

With these tools, the warehouse transformation team can design an RDC process flow that can capitalize on all the improvements and guarantee sizable cost savings. In the short term, the use of our tools will improve the RDC process design, which will improve quality and delivery performance of carts to manufacturing. Since one of the constraints to production is the delivery of parts, improvements in the warehousing process to better service manufacturing can unlock potential for higher production rates and better quality of work on the aircraft.

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TAUBER INSTITUTE FOR GLOBAL OPERATIONS

BRUNSWICK CORPORATION - MERCURY MARINE Moving From Infinite To Finite Capacity Planning

BRUNSWICK

Student Team: Jian-Liang Lin – Master of Business Administration Jack Simmons – Dual MBA & MSE in Industrial and Operations Engineering Xinran (Sharon) Sun – EGL (BSE & MSE in Industrial and Operations Engineering) Project Sponsors: John Buelow – VP of Global Operations John Cavey – Director of Global SIOP Faculty Advisors: Oleg Gusikhin – College of Engineering Jim Omartian – Ross School of Business Mercury Marine, a subsidiary of Brunswick Corporation, is a $3B manufacturing leader in the recreational marine boating market. They produce both engines and marine parts and accessories. The Controls & Rigging (C&R) division falls under Mercury’s Propulsion department and is a $300M business. C&R products are high margin and include switches, steering, GPS systems, Speed Display, joysticks, engine controls, and wire harnesses that connect steering controls to the engine.

Mercury’s C&R business used an unconstrained production scheduling system that functioned well when the business was right sized. However, during COVID-19, Mercury saw huge demand spikes in recreational boating.

Forecasters did not predict the demand would last beyond 2022, so Mercury decided to maintain its current manufacturing footprint. It did not approve capital expenditures for facilities but did approve spending for short term capacity increase within its existing infrastructure. Despite efforts to restructure plant layouts and add headcount to existing lines, Mercury was holding a backlog 10x their previous high. In addition to the underlying capacity issue, supplier shortages were exacerbating back orders by extending lead times from weeks to months.

From a plant level view, schedulers were required to make manual changes to the system-generated schedule to smooth out the fluctuating demand signals into executable production levels. Plant floor personnel in one of Mercury’s C&R departments were manually moving over $600,000 of product orders a day in 2021.

To combat these issues, the Tauber team mapped the process flow of C&R plants, interviewed stakeholders about the impact of demand changes on the S&OP process, analyzed data to narrow down the focus area, and piloted a solution. The Tauber team created a capacity constrained scheduling model with an 8-week firm horizon. It translated last minute changes and demand spikes into a predictable, efficient, and executable production schedule for the plant. The pilot resulted in 6 consecutive weeks of consistent, above average output, the longest streak of consistent production in 2021. It decreased the need for manual schedule intervention by over 84%. Ontime delivery increased by 18% in just 4 weeks.

Following the success of the pilot, Mercury plans to roll out the Tauber team’s solution to the entire global Controls & Rigging department with potential applications in the Parts and Accessories business. This is expected to deliver a cost savings of $42M by Year 3, with a potential upside of $62M from increased service levels, reduced transportation costs, increased asset utilization, and increased plant output.

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CURATION FOOD, INC. Modeling Supply Chain Risks for Agricultural Sourcing Student Team: Brody Bushnell – Dual Juris Doctor & Master of Business Administration Dean Golan – EGL (BSE & MSE in Industrial and Operations Engineering) Project Sponsors: Albert Bolles – Chief Executive Officer Tim Burgess – Senior Vice President of Supply Chain Jeff Korengel – Vice President of Program Management and Procurement Faculty Advisors: Sam Aflaki – Ross School of Business Margaret Wooldridge – College of Engineering Curation Foods, Inc., a $550M enterprise, is a natural foods company dedicated to making fresh, plant-based foods with 100% clean ingredients accessible to as many people as possible. Curation Foods is a different kind of consumer packaged goods company, with leading brands like Eat Smart® superfood salad kits and Yucatan® and Cabo Fresh® guacamole, and the premium line O Olive Oil and Vinegar®.

CURATION FOODS, INC.

The Tauber team aimed to solve two challenges: (1) predicting harvest dates for broccoli when 3 weeks out from harvest and (2) quantifying the optimal oversupply percentages for broccoli plantings to maximize yearly savings and reduce costs. Significant challenges experienced by the company include lacking clear data collection strategies, weather factors affecting harvest and quality, inconsistent supply planning, and high levels of demand volatility.

The Tauber team created regression and financial models to address and solve these challenges. To address the problems of harvest date subjectivity, climate change, and record keeping, the team built the “Days to Harvest” Dashboard. This tool analyzes historical weather patterns and a series of other inputs to determine when broccoli fields will be ready to harvest 3 weeks out from anticipated harvest dates. Two prediction models based on a multiple linear regression were built for California and Arizona. The R-squared for the California and Arizona regressions were 90.4% and 87.2%, respectively. Testing of 69 plantings in the Salinas Valley confirmed that the model is 97% accurate within +/- 6 days of the actual harvest date. The dashboard also includes a centralized database with information on all harvests, ranches, growers, and crop varieties to standardize the procurement office’s data collection efforts.

The oversupply strategy ultimately produced two main recommendations using the newsvendor statistical model - one for achieving a fill rate of 98.0% and one for maintaining the historical fill rate of 96.3% for broccoli products.

These two recommendations yielded an expected reduction in average yearly procurement expenditures of $627K and $2,125M respectively. Furthermore, the oversupply strategy model showed that there was great potential for increased financial savings from improving forecasting capabilities (ranging between $550K and $1.2M in yearly financial savings based on the reduction in forecasting error) and that such efforts should be pursued.

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SPOTLIGHT! 2021 THE ESTÉE LAUDER COMPANIES INC. Improving Ecommerce Delivery Experience Through New Inventory Positioning Capabilities Student Team: Shreya Agrawal – Master of Science in Engineering, Industrial and Operations Engineering Claire Covner – Master of Business Administration Project Sponsors: Sarah Bonnaud – Vice President Global Supply Chain, Online George Kuzma – Senior Vice President Global Supply Chain, North America Soo Park – Vice President, Sales Operations & Brand Planning, Online Faculty Advisors: Mariel Lavieri – College of Engineering Joline Uichanco – Ross School of Business The Estée Lauder Companies Inc. (ELC) are one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Clinique, M·A·C, La Mer, and many others. ELC started direct-to-consumer ecommerce brand sites in 1998 in the U.S. and has since continued to expand its ecommerce channels globally. ELC brands are known for high touch consumer experiences and the ELC Supply Chain team constantly focuses on elevating the brand sites’ post-purchase experience.

In the U.S., brand site orders are fulfilled in a multi-node fulfillment network managed through a third-partylogistics provider. When inventory is not positioned effectively across the fulfillment nodes, it impacts the brands’ speed of delivery and, in some cases, leads to split orders.

The Tauber team was tasked with diagnosing root cause issues contributing to split orders and non-optimal shipments, assessing current inventory positioning technology, and piloting new solutions to maximize orders shipped from fulfillment centers closest to the consumer and minimize split orders.

ESTEE LAUDER

The Tauber team approached this problem by first conducting a current state assessment to identify opportunities for improvement and then validated several hypotheses on root causes, using supporting data analysis. From there, based on expected impact, the team focused its analysis on an assessment of current forecasting processes and tools and recommendation of short-term tactics ELC should use to drive improvement given the current state of inventory positioning. Overall, the Tauber team recommended and initiated ELC’s longer term movement toward additional inventory positioning technology capabilities and new strategies for short-term responsiveness to current positioning. These changes are set to yield significant time savings, cost savings, and improvement in process inefficiencies along with benefiting additional brands within the ELC portfolio and other global markets that are also moving to multi-node distribution networks.

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MICHIGAN ROSS | MICHIGAN ENGINEERING

TAUBER INSTITUTE FOR GLOBAL OPERATIONS

FORD MOTOR COMPANY Using AI to Automate and Scale Digital Twin Technology for Advanced Manufacturing

FORD MOTOR COMPANY

Student Team: Michael Fanelli – EGL (BSE & MSE in Mechanical Engineering) Matt Rosales – Master of Business Administration Project Sponsors: Mark Goderis – Technology Manager, Manufacturing Technology Development Annie Zeng – Digital Twin and AI Specialist, Manufacturing Technology Development Faculty Advisors: Vijay Pandiarajan – Ross School of Business F. Andy Seidl – College of Engineering For over 100 years, Ford Motor Company has developed, manufactured, and distributed vehicles worldwide.

Today, Ford employs 186,000 employees globally, with revenues expected to exceed $140B in 2021. To maintain its position as a world-class manufacturer, Ford is investing in advanced manufacturing technologies to drive its “Factory of Tomorrow” transformation towards an intelligent and completely connected manufacturing system.

One such disruptive technology is a Factory Digital Twin, a digital representation of plant floor assets and processes. Digital Twins allow for virtual designs and validation, increased plant floor efficiency, and integrated, real-time monitoring. With each asset on the plant floor having maintenance, quality, and live Industrial Internet of Things (IIOT) data, a Digital Twin relies on connected data. Often, these systems were developed independently of each other and operate in silos, making them difficult to integrate. Ford’s Master Asset Registry Service (MARS) decodes and connects disparate systems, but the process was highly manual, constraining the Digital Twin’s pace of implementation. The Tauber team’s goal was to automate this systems integration to drive efficiency and accelerate the implementation timeline. The team pursued a two-pronged solution: Retroactive and Proactive. The Retroactive Solution integrates existing assets in plants while the Proactive Solution designs out the problem by making new assets digital and connected from the moment they are born.

To develop the Retroactive Solution, the team interviewed architects and end-users of various manufacturing systems, mapping the ontology. This was used to develop a multi-layered AI solution architecture, using an Expert System and Machine Learning, designed for Ford’s diverse manufacturing systems and plants. The team demonstrated this architecture’s viability and scalability by developing a proof-of-concept focused on connecting a machine acceptance system and a maintenance system in Ford’s Powertrain plants.

The team also developed a roadmap for the Proactive Solution. This roadmap detailed strategies for creating connected data when assets are born, designing simpler strategies when possible and more nuanced ones when necessary. The team demonstrated this roadmap on custom tooling used in new plants, focusing on the Rouge Electric Vehicle Center, the new plant where the all-electric F-150 Lightning will be manufactured.

The Tauber team’s AI solution decreases the labor and time to implement the Digital Twin on new manufacturing lines by 65%, allowing for an accelerated pace of implementation 2.86 times greater than before. This will lead to increased efficiency on the plant floor across Ford’s Powertrain plants, directly saving the company $3.64 million from 2022 to 2024, or $1.21 million annually. Additional savings are expected from extending the solution architecture to other manufacturing systems and plants as well as from a reduction in downtime.

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SPOTLIGHT! 2021 GENERAL MOTORS Deep Learning For Machine Vision Student Team: Mabel Chan – EGL (BSE & MSE in Computer Science Engineering) Konstantinos Chiotinis – Master of Business Administration Soo Yeon (Sean) Lee – EGL (BSE & MSE in Computer Science Engineering) Project Sponsors: Amar Amad – Engineering Manager William Keller – Sr. Manufacturing Project Engineer Faculty Advisors: Jeff Alden – College of Engineering Sanjeev Kumar – Ross School of Business

GENERAL MOTORS COMPANY

General Motors Company, a $79B company, is one of the world’s largest automotive manufacturers, producing close to 7 million vehicles a year. The company uses more than 2,000 machine vision cameras across all facilities to inspect various aspects of production. So far, the accuracy of several vision cameras has not been satisfactory to General Motors, since inaccuracy results in unnecessary downtime. General Motors wants to decrease downtime and increase throughput. A potential solution to the problem of camera inaccuracy is the application of deep learning (a form of artificial intelligence learning based on artificial neural networks in which multiple layers of processing are used to extract progressively higher level features from data) on machine vision cameras.

Asked to analyze the performance of deep learning versus traditional methods for machine vision applications within GM, the team implemented deep learning on 13 machine vision cameras that were either performing poorly with traditional vision methods or were performing especially complex inspections. Using deep learning, the team was able to improve camera performance, achieving an accuracy of 99.7% or higher, a number set as the target by GM, an improvement of more than 15 percentage points for some cameras. With deep learning, every camera performed as well as or better than traditional vision methods, indicating an opportunity for large-scale implementation.

Three process improvements were also made, with a fourth proposed possibility: (1) a decision-making process to determine whether a camera is a suitable deep learning candidate; (2) a protocol for training deep learning models, which decreases implementation time by 80%; and (3) a method to reuse deep learning models on different cameras. Fourth, the team identified several bottlenecks, which, if addressed, can decrease deep learning implementation time by up to 50% (more than 3 hours per camera) and the needed space for storing historical machine vision data by 66%, saving GM several terabytes of storage space.

The performance improvements made by the team resulted in over 30 hours of decreased projected downtime per month. The potential economic benefits for implementing deep learning across the assembly line are estimated to be roughly $9 million for the first year and $40 million within 3 years. Also, the increase in machine vision accuracy will positively affect quality control.

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SPOTLIGHT! 2021 HERMAN MILLER, INC. Improving Domestic Outbound Freight Utilization Student Team: Michael Krasnor – Dual MBA & MSE in Industrial and Operations Engineering Felice Mueller – Master of Business Administration Emmett Springer – EGL (BSE Biomedical Engineering & MSE Industrial and Operations Engineering) Project Sponsors: Jeff Kurburski – Chief Technology Officer Richard Scott – Chief Global Manufacturing and Operations Officer Faculty Advisors: Robert Inman – College of Engineering Jim Price – Ross School of Business Herman Miller, Inc., a $2.5B company, is a globally recognized leader in the design and manufacture of furniture, and the parent company to many notable furniture and home goods brands. The firm operates manufacturing and distribution sites in the US, UK and China. The Midwest Distribution Center (MWDC) in Holland, MI aggregates and distributes goods from all Herman Miller Group brands to all customers across the Americas. The MWDC sought to improve the utilization of truck-driven trailers, their primary mode of domestic product shipment, to reduce shipping costs.

Herman Miller’s business model complicated this endeavor; their value proposition is founded on a high level of customer service and reduced costs derived from lean manufacturing principles. Herman Miller’s logistics coordinators operated within the Customer Care department to ensure that customer requests - rapid order modification, exact times and days of delivery, maximum trailer quotas, and physical loading requirements – were met. Just-in-time manufacturing with no safety net of inventory also drastically constrained shipping timelines.

These factors hampered logistics coordinators’ ability to efficiently coordinate trailer loads, directly decreasing profitability, as the firm offered free domestic shipping. Coordinators relied on tribal knowledge and timeconsuming manual processes to meet customer demands.

HERMAN MILLER

The Tauber team analyzed shipping patterns and identified frequently visited warehouses as prime targets for improving shipping efficiency. These customers which used these warehouses had relatively smooth demand profiles, predictable delivery preferences and an ability to unload densely packed trailers. Further analysis determined that the presence of such “high-traffic warehouses” could enable efficiency improvements for deliveries to nearby customers as well. The Tauber team programmed an automated tool to codify and improve upon coordinators’ best practices and increase shipment efficiency to these clusters. The team also implemented several communication flow improvements, data quality control procedures, and statistical risk quantification and management processes to support these operational improvements.

The team successfully began implementing these tools and operational improvements. Herman Miller’s expected annual savings are $1.6M (4% of total shipping costs) with a 90% reduction in service level related risk and a 484 US tons (3.4%) reduction in CO2 emissions.

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MICHIGAN ROSS | MICHIGAN ENGINEERING

SPOTLIGHT! 2021 HOWMET AEROSPACE Optimizing Working Capital And Network Design

HOWMET AEROSPACE

Student Team: Vedant Kanyaboiena – Master of Engineering in Automotive Engineering Jason Miller – Master of Business Administration Project Sponsors: Barry Haun – Director, Global Supply Chain Dan Smink – Manager, Global Supply Chain Faculty Advisors: Chris Mueller – Ross School of Business Pete Washabaugh – College of Engineering Howmet Aerospace (Howmet) is a global leader in engineered metal products. The Howmet Wheel Systems (HWS) business unit is a market leader in every country in which it competes, and has warehousing/distribution in ten countries, with manufacturing in the U.S., Mexico, Hungary, China, and Japan. With high growth expected in the commercial transportation market in 2022, HWS is ramping up its North American supply chain.

Due to business effects caused by the COVID-19 pandemic, working capital tied up in inventory at network facilities became a primary target for reduction. Additionally, a shift towards lower-cost international manufacturing and subsequent importation was made, leading to more in-transit inventory and increased supply variability. The Tauber team was asked to reduce work-in-process (WIP), finished goods (FG), and in-transit inventory, as well as decrease supply chain costs where possible.

The Tauber team began the project by conducting extensive stakeholder interviews to understand business challenges. To optimize WIP & FG inventory, the team introduced the concept of postponement, which delays manufacturing and/or distribution differentiation of a product until a customer order has been received. This reduces variability and planning effort by pooling inventory among SKU families. To determine the reduction potential, the team created a tool that calculated the optimal inventory level according to postponement and compared it to the current state. The team also evaluated production run sizes by performing sensitivity analyses on changeover frequency. Some manufacturing lines had unused capacity; therefore, shorter run sizes with more frequent changeovers would lead to lower inventory levels and increased planning flexibility without affecting capacity.

To address in-transit inventory, the Tauber team created a scenario modeler that considered the inbound and outbound flows of the network to determine the cost- and service-optimal logistics lanes to utilize, and provided options to add, remove, or relocate network facilities. The findings of this tool were to close and co-locate the central distribution center with an existing regional distribution center (RDC) with excess capacity, expand the role of a second RDC to service the western US, and utilize additional ports to limit ground transportation of imports.

Implementing production & distribution postponement, alleviating production constraints to enable shorter production run sizes, and other proposed inventory initiatives would have a projected one-time working capital reduction of $11.0M. The optimized distribution model is projected to save $5.0M of inbound and outbound transportation costs annually.

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MICHIGAN ROSS | MICHIGAN ENGINEERING

TAUBER INSTITUTE FOR GLOBAL OPERATIONS

THE MAYO CLINIC Optimizing Inventory Management for Labs Student Team: Andrew Johnston – Master of Business Administration Amalia Siavelis – EGL (BSE Biomedical Engineering & MSE Industrial and Operations Engineering) Project Sponsors: Joe Dudas – Division Chair, Supply Chain Bruce Gilmore – Director, Supply Chain Management Kari Solak – Performance Consultant, Supply Chain Management Faculty Advisors: David Chesney – College of Engineering Lisa Pawlik – Ross School of Business

MAYO CLINIC

The Mayo Clinic, a $14B nonprofit organization, is a leading health system in the United States that is committed to “providing the best care to every patient through integrated clinical practice, education, and research”. Mayo Clinic’s Department of Laboratory Medicine and Pathology (DLMP) performs testing services for diagnostic and therapeutic evaluations, completing 27 million tests annually for both internal patients and external customers.

Tens of thousands of unique lab supplies are required to perform hundreds of distinctive medical tests and services.

To source, procure, manage, and distribute inventory, DLMP partners with Mayo Clinic’s Supply Chain Management (SCM) group.

Organic growth in testing volume and COVID-19 pandemic-related supply chain disruptions put pressure on DLMP’s inventory management practices and revealed areas of opportunity. DLMP’s 125 production labs were each independently managed, which led to great variation in how inventory was handled and by whom. Limited SCM support and inadequate technology systems inhibited positive change.

The Tauber project team leveraged a framework of people, process, and technology to identify inventory management improvements that would net financial and operational gains. To this end, they interviewed 150 lab staff, conducted lean rapid plant assessments on 40 labs, and held benchmarking conversations with 15 industry partners to create a current state gap analysis. Next, they conducted a proof-of-concept implementation within three DLMP labs to measure the impact of their recommended changes and evaluate their ability to scale solutions.

Finally, the Tauber team refined their analysis and delivered final recommendations and a phased rollout roadmap.

The Tauber team identified the potential for significant revenue gains through lab capacity advancements and cost savings through the application of lean principles. Over three years, they projected that Mayo Clinic can net $112M. To unlock this value, the Tauber team recommended that Mayo Clinic form SCM teams for supply logistics and complex order management and transfer inventory responsibilities from laboratory staff to these new, improvement-focused groups. As a result, it is estimated that 83K labor hours per year would be returned to DLMP lab activities. Additionally, the Tauber team built the business case for improved data analytics and project management capabilities in order to transform DLMP’s inventory management from a business challenge to a strategic advantage.

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SPOTLIGHT! 2021 C.S. MOTT CHILDREN’S HOSPITAL Augmented Reality in Pediatric Minimally Invasive Surgery Student Team: Fernando Espino Casas – Master of Business Administration Matthew Shannon – EGL (BSE Computer Engineering & MSE Electrical & Computer Engineering) Project Sponsors: Dr. David Chesney – Professor, Computer Science & Engineering Dr. Ronald Hirschl – Pediatric Surgeon Dr. Marcus Jarboe – Pediatric Surgeon Faculty Advisors: Amy Cohn – College of Engineering Stephen Leider – Ross School of Business C.S. Mott Children’s Hospital at Michigan Medicine is nationally recognized as one of the leading pediatric health care centers in the United States. Established in 1903, Mott provides comprehensive primary and specialty healthcare for children, including numerous surgical procedures.

Minimally invasive surgical (MIS) operations, performed at Mott Children’s Hospital and other hospitals nationwide, involve the use of expensive, ergonomically unfavorable booms and monitors that are not under the surgeons’ direct control because the surgeon is sterile. This current setup inhibits the visibility of real-time video from surgical cameras (surgeons and equipment on the other side of the OR table impede visibility) and requires others in the room to adjust monitors, resulting not just in surgeon frustration, but in ergonomic concerns that feed into longterm chronic disability and impact the ability to optimally perform MIS procedures. In addition, by having to be sterile, the surgeon is isolated from what would otherwise be easy access to other crucial information such as imaging, vital signs, procedural videos, and the medical literature. The impact cascades outside the operating room as well, with case delays resulting in suboptimal use of OR time and inefficient cost-management of the OR.

MOTT HOSPITAL

To address these issues, the Tauber team worked to fully integrate the newest HoloLens 2 augmented reality (AR) headset for use in operating rooms at Mott. First, the team conducted secondary research to familiarize itself with both the clinical environment and the capabilities of the HoloLens 2. The team proceeded to map key datastreams that exist in the OR and analyze what critical steps were required to integrate them into the headset, while simultaneously conducting surgeon interviews to identify factors that would impact their adoption of the technology. Based on this work, the Tauber team provided detailed recommendations to integrate real-time video from the surgical camera, patient vitals, and images into the HoloLens 2; in addition, the team provided a comprehensive business case, outlining the key benefits of integrating AR technology at Mott and other hospitals.

Finally, to ensure a smooth transfer and roadmap for surgeon adoption of the technology, the Tauber team developed a surgeon acceptance and implementation plan.

After finalizing and successfully integrating the HoloLens 2 into each operating room, Mott can expect qualitative and quantitative benefits. With greater agency, surgeons will minimize delays from frustrating processes, improving short-term case completion and long-term operative careers. Moreover, administratively, Mott can expect to save 2,500 annual overtime hours and cut at least an estimated $500,000 in annual OR operating expenses, with the possibility to extend elsewhere in other Michigan Medicine operating rooms.

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MICHIGAN ROSS | MICHIGAN ENGINEERING

TAUBER INSTITUTE FOR GLOBAL OPERATIONS

NATIONAL CENTER FOR MANUFACTURING SCIENCES Establishing And Maturing A Digital Infrastructure For The United States Government

Student Team: Bryce Garver – Master of Business Administration Elizabeth Rubenson – EGL (BSE Biomedical Engineering/Master of Science in Engineering in Biomedical Engineering) Project Sponsors: Michael DeHeer – Senior Project Manager, Digital Enterprise & Initiatives Jon Riley – Senior Vice President, Digital Enterprise & Initiatives Faculty Advisors: Wei Lu - College of Engineering Mohamed Mostagir - Ross School of Business

NATIONAL CENTER FOR MANUFACTURING SCIENCES

The National Center for Manufacturing Sciences (NCMS) is the nation’s leading cross-industry, technology development consortium, headquartered in Ann Arbor, Michigan. NCMS is dedicated to improving the competitiveness and strength of U.S. manufacturing. To do this, NCMS leverages their network of industry, government, and academic partners to accelerate the development and adoption of innovative manufacturing and technology capabilities.

Manufacturers have been utilizing digital transformation to revolutionize the way they work and collaborate. This transformation has been dramatically expedited in the past 18 months due to the COVID-19 pandemic as supply chain resilience and adaptability is at the forefront of conversations. The need to adapt the way organizations collaborate on complex manufacturing and engineering problems led NCMS to create the NCMS Digital Proving Ground (DPG). The DPG enables industry and government users to manage and collaborate on innovative projects in an integrated, secure, neutral, cloud-based, single-source environment that encompasses the full lifecycle of digital product development.

With the DPG being a relatively new offering, the Tauber team was brought on board to advance the maturity of the DPG and enable widespread adoption. The team assessed the DPG by conducting user interviews with a wide array of end users from large industry OEMs, small and mid-sized manufacturers, technology developers, and government participants. Through this assessment, the team identified three major needs to deliver value to NCMS and project participants more broadly: expedite the onboarding process, enable users to be more effective in the new environment, and enhance visibility of project status to facilitate management and decision making.

The team proposed initiatives and an implementation timeline to address these needs and create value for NCMS along with their government and industry partners. The team expedited onboarding to the DPG and reduced process risk by developing an automated vetting process. To enhance user effectiveness, a systematic training process was conceptualized and an implementation strategy was formed. This training will provide direct instruction on all aspects from getting started, to working in the specific software inside the DPG. Finally, a suite of DPG dashboards was created to enable NCMS leadership to make strategic decisions about the future of the DPG and improve project manager visibility into project specific usage information along with other key performance indicators (KPIs).

By implementing the changes recommended by the Tauber team, NCMS will save $26.3 million in project costs over the next three years, avoid potential project cost overruns, as well as unlock further DPG revenue growth. These savings can then be fed into other initiatives to further deliver value for the U.S. government and industry partners.

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SPOTLIGHT! 2021 PEPSICO Tolleson Gatorade Water Use Reduction Student Team: Tom Kraeutler – Dual MBA & Master of Science in Environment & Sustainability Jack Riley – EGL (BSE & MSE in Civil Engineering) Project Sponsors: Tim Carey – Vice President, Sustainability Brian Boothe – Engineering Manager, Tolleson Gatorade Andy Lempera – Director, Engineering Sustainability Chris McKenna – Senior Principal Engineer, Sustainability Jeff Rutkowski – Senior Plant Director, Tolleson Gatorade Faculty Advisors: Ekaterina Astashkina – Ross School of Business Steven Skerlos – College of Engineering PepsiCo, Inc. is a Fortune 100 food and beverage company that has publicly committed to 2025 and 2030 Sustainability Goals which include significantly reducing the amount of non-product water used in the Gatorade production process. These goals are particularly important to Tolleson Gatorade, located outside of Phoenix, which is experiencing record drought conditions that are expected to worsen due to climate change. The Tauber team developed a path for Tolleson Gatorade to achieve PepsiCo’s 2025 and 2030 water use sustainability goals, by more than 65% and 80%, respectively, by quantifying the full extent of current water uses, recommending new water saving initiatives, implementing approved projects, and designing a cultural framework to ensure long-term success.

To understand the plant’s current state, the team updated water usage data by taking measurements of flow and analyzing existing data to create a mass balance of all water consumed across 36 distinct end uses.

Simultaneously, the team interviewed dozens of operators and supervisors to identify key pain points and opportunities to improve. These two sources of information were combined to create and prioritize 33 unique projects, representing 144.6M gallons per year of water savings, for implementation across the plant’s nine production lines and associated water treatment system.

PEPSICO, INC.

The Tauber team began execution of water savings projects to ensure the plant remained on target to achieve annual goals. Sixteen unique projects were implemented while onsite, including optimizing recirculation through heat exchangers, eliminating excessive conveyor sprays, and creating a system to notify high water use conditions in bottle coolers.

To support these new efforts, the team also performed a root cause analysis of historical projects which had not been maintained to identify and recommend key cultural and organizational improvements for PepsiCo and Tolleson Gatorade that will be necessary to achieve the sustainability goals. Over the project duration, the Tauber team implemented changes which resulted in annual savings of $625,000 and 62% (89.5M of the 144.6M gallon) water use reductions required by 2025.

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MICHIGAN ROSS | MICHIGAN ENGINEERING

TAUBER INSTITUTE FOR GLOBAL OPERATIONS

PFIZER INC. Batch Changeover Velocity Student Team: Lyndy Burnett – Master of Business Administration Jackson Cummings – EGL (BSE & MSE Industrial & Operations Engineering) PFIZER, INC.

Project Sponsors: Ross MacRae – Senor Director, Drug Product Supply Paul Stuart – Vice President, Drug Product Supply Sue Upson – Drug Product Manufacturing Lead, Drug Product Supply Faculty Advisors: Luis Garcia-Guzman – College of Engineering Len Middleton – Ross School of Business Pfizer Inc. is a world-leading research-based pharmaceuticals firm, with annual revenues over $51.8 billion and nearly 100 clinical research and development projects in-progress, supporting the expansion of a diverse portfolio of medicines and vaccines. Faced with shifting patient expectations in a rapidly evolving industry, only further spurred by the COVID-19 pandemic, Pfizer is not strictly keeping pace with shifting industry paradigms but setting the pace for innovation.

With goals of delivering 25 breakthroughs that treat 225 million patients by 2025, Pfizer is focused on further strengthening its research and development (R&D) pipeline by redefining delivery timelines, reevaluating clinical drug priorities, and investing in new technologies, capabilities, and continuous improvement opportunities. To accelerate delivery of medicines and vaccines that meet unmet medical necessities, Pfizer recognized the need to increase facility capacity and production throughput at its Sandwich, UK facility, which has new capabilities coming online and an increasing demand year after year.

The 2021 Tauber Team focused on improving facility efficiency and overall manufacturing capacity and throughput by rationalizing non-manufacturing activities, maximizing resource utilization, and optimizing workforce skillsets.

Based on an analysis of current state operations, the key improvement opportunity areas addressed the facility system’s bottleneck, cleaning queue throughput, and technician capacity. The main recommendations included hiring an additional cleaning resource, implementing a space dedicated for drying equipment, and creating an additional cleaning shift in current operations. The team also recommended several changes to technician team scheduling and working dynamics, cleaning practices and organization of tools, technology utilization, more accurate data collection methods, and cleaner training program enhancements.

When implemented, the Tauber team’s recommendations will enable a 125.43% increase in cleaning queue throughput and a 38.28% increase in technician capacity - time that can be dedicated to manufacture and strategically complete non-manufacture activities. These recommendations will save Pfizer a total of $5.07M through manufacturing process increases and saved labor costs. These projections are derived from current state documentation, technician and cleaner interviews, a real-time piloted data collection system, and previously existing facility data. Some of the results were confirmed by data collected during a 5-week pilot that tested the validity of a subset of recommendations. These impacts will enable Sandwich to complete more processes and batches, and thus, deliver more clinical product every year. In doing so, Pfizer can accelerate medicines and vaccines to market, supporting Pfizer’s commitments to meet unmet medical needs through the development of breakthrough therapies and precision medicines.

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SPOTLIGHT! 2021 STANLEY BLACK & DECKER Industry 4.0: IIOT Machine Condition Monitoring and Analytics Student Team: Janice (Yin Yin) Lau – Master of Science in Industrial & Operations Engineering Akshay Seth – Master of Science in Industrial & Operations Engineering Project Sponsors: Nathan Dietrich – Advanced Manufacturing Engineering Deployment Manager Aditya Mairal – Advanced Manufacturing Engineer Ziyan Xu – Advanced Manufacturing Engineer

STANLEY BLACK & DECKER

Faculty Advisors: Lennart Baardman – Ross School of Business Line van Nieuwstadt – College of Engineering Stanley Black & Decker (SBD) is a $15.6 billion company with 58,000 employees operating in 140 facilities in 60 countries. The company is the world’s largest tools and storage company, the second-largest commercial electronic security company, and a leading provider of engineered fastening systems. SBD’s Industry 4.0 Team leads the efforts to rapidly adopt leading-edge technologies in manufacturing operations and leverage machine connectivity and data analytics to improve overall equipment effectiveness (OEE).

As part of the continuous efforts to improve OEE, the Tauber team was tasked with developing three deliverables to improve machine reliability: (1) use cases around machine condition monitoring with a minimum value of $150,000 with less than 2 years of payback, (2) a data analytics model that provides actionable insights, and (3) a roadmap for scaling use cases across SBD’s sites. The sites in scope were Danbury and New Britain, CT and East Longmeadow, MA. During the development phase of four use cases, the team interviewed more than 50 stakeholders to understand machine failure modes, their impact on production, and the metrics to watch for condition monitoring. Then, the team developed a Value-Effort Framework to evaluate potential condition monitoring opportunities (centered around vibration, temperature, and current monitoring) on the scale of value generation and implementation effort.

Finally, the team created a Savings Flowchart to capture potential saving categories such as overtime reduction, scrap reduction, throughput increase, etc.

When developing the data analytics model, the team applied the concepts of Statistical Process Control (SPC) to analyze machine condition data and establish alert threshold limits. The model results were delivered to the endusers via real-time visualization dashboards. Using the models developed, the team successfully indicated several instances of premature machine failures and enabled an effective maintenance responses.

Lastly, the team created a scalable roadmap that documents the step-by-step approach for how the use cases were developed and how the model can be generalized. By implementing the use case developed by the Tauber team, Stanley Black and Decker would be able to achieve over $180,000/year in savings with less than 2 years of payback, preventing more than 1300 hours of downtime and more than $2 million of production loss.

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MICHIGAN ROSS | MICHIGAN ENGINEERING

TAUBER INSTITUTE FOR GLOBAL OPERATIONS

STONERIDGE, INC. Product Line Strategy – Driveline Actuation Student Team: Oluwabunmi Fatodu – Master of Business Administration Sasanka Mouli Neti – Master of Science in Engineering, Industrial and Operations Engineering Project Sponsors: Rajaey Kased – Vice President, Sales and PL Management Scott Skelton – Product Line Manager Faculty Advisors: Raed Al Kontar – College of Engineering Ariel Shwayder – Ross School of Business Stoneridge Inc., founded in 1965, is an independent designer and manufacturer of highly engineered electrical and electronic components, modules, and systems, principally for automotive, commercial, motorcycle, agricultural, and off-highway vehicle markets. Stoneridge tasked the Tauber team to develop a go-to-market strategy for a key product within the Driveline Actuation group. Starting with a nearly blank slate, the team worked not just toward identifying the specific target opportunity within the 8-million-unit Total Available Market (TAM), but also toward building a strong value proposition and curating a forward-looking manufacturing strategy for the immediate opportunity.

Stoneridge would supply this actuator through a Tier 1 to an OEM. In a multi-tiered value chain such as this, it is imperative to understand the various customer needs accurately. In order to incorporate the voice of the customer into a strong value offering, the team gathered market intelligence from various online resources, worked with an anthropology consulting firm to highlight the inefficiencies in similar products currently available on the market, and finally evaluated the feasibility of an integrated system offering. This integrated system would not just be a cost improvement, but also a weight savings and performance improvement over the incumbent product, owing to the synergies between the actuators.

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STONERIDGE, INC.

The team identified a forward-looking manufacturing strategy, along with a detailed development timeline for the target customer after carefully evaluating the capital expenditure, floor space, and labor requirements for different manufacturing facilities that Stoneridge operates. Upon modeling the financial impact of different manufacturing scenarios, the team identified a few combinations that would be most profitable to Stoneridge once production begins. Thinking above and beyond just the immediate target opportunity, the team also identified other subsequent opportunities across different geographies and vehicle segments that Stoneridge could pursue once the immediate business opportunity has been captured. Overall, the team built a comprehensive playbook for Stoneridge to deliver on these opportunities, adding more than $76 million in revenue over the next 5 years.

SPOTLIGHT! 2021 TARGET CORPORATION

TARGET CORPORATION

Improving Problem Freight Disposition Time

Student Team: Jen Garb – Master of Business Administration Celia Osman – EGL (BSE & MSE in Industrial & Operations Engineering) Parsa Shoa – EGL (BSE in Computer Science & MSE in Industrial & Operations Engineering) Project Sponsors: Nicolas Caretta – Sr. Director Product Management Heath Holtz – Sr. VP of Field Operations Arthur Valdez – EVP & Chief Supply Chain Logistics Officer Faculty Advisors: Luis Garcia-Guzman – College of Engineering, University of Michigan Owen Wu – Kelley School of Business, Indiana University Target Corporation is a U.S. based retailer that provides high-quality, on-trend merchandise at attractive prices, generating $93.6B in annual revenue through online and in-store sales. Target has a vast distribution center network, operating 46 distribution centers, to replenish both stores and Fulfillment Centers (FC), which deliver e-commerce orders straight to guests. Over 75% of the U.S. population lives within 10 miles of a Target store. Its Regional Distribution Center (RDC) network receives goods from more than 8,000 vendors and replenishes both Target stores and Target.com. Target maintains both small-format discount stores and SuperTarget hypermarkets, totaling 1,914 locations in the U.S. and employing over 368,000 people over 20 offices globally. The company sells a variety of merchandise, including beauty and health products, bedding, clothing and accessories, electronics, food, furniture, jewelry, lawn and garden, pet supplies, shoes, small appliances, and toys and games.

In fiscal 2021, the Target replenishment network expects to flag 16.88 million cartons on inbound docks as prereceipt problem freight, due to invalid purchase orders, invalid carton or selling unit barcodes, and case-pack/store ship-pack configuration errors. Once identified, all problem freight must be properly quarantined and investigated, then placed through a resolution process involving both internal and external upstream partners. This creates congestion on the inbound docks and product delays further down the supply chain, ultimately contributing to store out-of-stocks and jeopardizing the guest experience. With the need to maintain and continuously improve the efficiency of its fulfillment and distribution processes to compete in the industry and improve guest satisfaction, Target requires more efficient problem freight resolution processes.

Seeking to lower the network-wide time to resolution for problem freight, the team conducted data analysis, stakeholder interviews, benchmarking research and process observations which led them to identify that across all upstream partners, resolution takes an average of 4.23 business days with a standard deviation of 7.05 business days. The team also found that a single upstream partner group was responsible for resolving 80.7% of problem freight occurrences. Thus, the team narrowed the project scope to focus solely on reducing the time to resolution of this partner.

In pursuit of achieving a 24-hour resolution service level agreement (SLA), the team developed a four-phase solution roadmap which anchored to establishing standardized work and direct vendor accountability, leveraging outsourcing opportunities and improving problem freight management technology. These improvements are estimated to increase Target’s revenue by $1.036 billion over the next 3 years, while reducing payroll costs by $35.3 million in the same time frame.

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MICHIGAN ROSS | MICHIGAN ENGINEERING

SPOTLIGHT! 2021 THE WHIRLPOOL CORPORATION Developing the IdX Training Pathway

Student Team: Margaret Kirk – Master of Business Administration Matthew Rodeman – EGL (BSE & MSE in Electrical Engineering) Project Sponsors: Michael Cukier – Principal Engineer, Global Advanced Manufacturing - Digital Transformation & MFG Innovation Elena Stefanko − Engineering Analyst, Global Advanced Manufacturing Engineering

WHIRLPOOL CORPORATION

Faculty Advisors: M.S. Krishnan – Ross School of Business Fred Terry – College of Engineering The Whirlpool Corporation (NYSE: WHR) is the world’s leading kitchen and laundry appliance company, with approximately $20 billion in annual sales, 77,000 employees and 59 manufacturing and technology research centers in 2019. Whirlpool Corporation’s GAME (Global Advanced Manufacturing Engineering) team is tasked with creating new manufacturing systems to deliver winning products for consumers. Through digital transformation, they have been able to establish foundational technologies, build production intelligence, and help deliver new, innovative products for a digital world.

Whirlpool’s GAME team has identified Industrial Digital Transformation (IdX) as a key strategic initiative to drive forward their manufacturing processes globally. As part of IdX, Whirlpool is introducing new technology and collecting new data. In order to fully utilize the new technologies they want to make sure their workforce is capable and prepared. In order to achieve this, Whirlpool is looking for a framework for introducing training to enable the full potential of the IdX program.

In order to define the framework, the team started by looking for external benchmarks for training programs related to digital transformation at other organizations. The team also interviewed individuals across the Whirlpool organization, from assembly operators at the site to managers on the corporate side in the European region. Based on all of this research and feedback, the team was able to create this general training framework with the following sections: business case, defining stakeholders, building a timeline, developing training content, implementing training, and incorporating into World Class Manufacturing (WCM). This framework is delivered through a website in order to be easily accessible and agile as the framework is implemented and refined through experience. This framework provides guidance and resources within each of the sections as defined above and gives examples where available - from the pilot we were able to execute at the Clyde manufacturing site. The team also outlined the plan to move forward and immediately implement this framework globally to deliver savings.

Overall the team also defined three value streams that deliver cost savings to Whirlpool through this framework.

This first is time savings. Based on research as well as discussions with the team at Whirlpool the Tauber team was able to determine that by using a framework such as the one developed there can be a savings of 30% of the project team’s time. At Whirlpool, for IdX projects alone, this represents a savings of approximately $1.9M in 2021 alone. The next stream is project effectiveness. The team found that there is a potential for a 30% increase in project effectiveness by using a framework like the one defined. This translates to a potential savings of between almost $3M and $4.5M over the next three years. The last value stream is employee engagement. While this does have a direct monetary impact, the potential savings are vast. It has been shown that increased engagement can improve retention as well as boost overall morale, leading to increased productivity and reduced cost of recruiting.

The overall potential savings in the next three years are between $9M and $11.5M.

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