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Case study redesigning the montreal lpp


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Case study redesigning the montreal lpp

  1. 1. ttrt Redesigning the Montreal Letter ProcessingAT A GLANCE: CenterD/AP PROVIDED A COMPL ET EREDESIGN OF T HE MONT REAL SITUATIONLETT ER PROCESSING CENT ER AS Canada Post Corporation (CPC) is undergoing a major modernization effortPART OF CANADA POST’ MAJOR to equip itself with new mail sequencing equipment. The deployment of theMODERNIZATIONS EFFORT. new equipment requires a complete redesign of major processing centers with minimal building alterations and in a way that minimizes impacts onCANADA POST TOOK OWNERSHIPOF T HE CAPACITY MODEL operations during the transition period.DEV ELOPED BY D/AP AS PART OF CPC retained the services of decision/analysis partners (d/ap) to helpTHE PROJECT. design a plant layout that would accommodate all operating equipment, reduce non-value added mail movements, and minimize labor costs. APPROACH decision/analysis partners developed a comprehensive approach consisting of the following major steps: Developed block layout diagrams to identify key work centers and dimension them based on projected workload Built a detailed simulation model of the operations to estimate capacity requirements (number and type of processing equipment, and labor requirements) Developed detailed work center designs to estimate spatial requirements at work centers to accommodate for staging areas Developed multiple layout scenarios to present alternative options. Evaluated each option in terms of impact on operation during transition, adherence to safety standards, material flows between work-centers, expansion and/or building renovation requirements, and related costs.
  2. 2. RESULTSCPC adopted one of the layouts proposed, and has taken ownership of thecapacity model built by d/ap to evaluate impacts of varying operationalalternatives. The model is now being used by CPC as a planning tool toestimate labor requirements.