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Abstract
The purpose of this project was to improve and optimize the internal logistics activities associated with the Under Rear process at Toyota Motor Manufacturing Indiana (TMMI) to alleviate the ongoing labor shortage challenges in the manufacturing industry. This general objective is achieved through the integration of an Automated Guided Vehicle (AGV) system and the application of lean manufacturing principles. The Under Rear AGV system is designed, simulated, and analyzed with the use of FlexSim, a discrete-event simulation software. To design this system, it was necessary to determine the required number of AGVs, picking and delivery locations, as well as the flow path and layout configuration. Activities such as unnecessary motion and waiting were eliminated, thus contributing to better ergonomics and an increase in safety. Additionally, the repurposing of team members from non-value-added activities that include the transportation of parts around the manufacturing can be achieved through the integration of this AGV system and leads to a substantial overall cost reduction. Additionally, facility layout improvements were implemented, leading to a reduction in distance traveled of 30.45 meters. Furthermore, a projected increase in operational availability of 10% is accomplished, while far exceeding TMMI’s operational requirements. The AGV system design also provides various benefits in the context of environmental CO2 emissions, opportunities for global scalability, and maintainability.