final deliverables

Final Deliverables By: Wesley McAhren

Projects

• Standard vs. Actual cost analysis for 2560, 3691, and 2242

• Pre-Production Assessment for all new sales order in month of June, July, and August

• Revised routers for Cleveland location

• Efficiency time studies• Wax

• Assembly

• Melt

• Finishing

• Corrective action battle cart for melt operation

• Operation boards for daily through-put and goal sheets

• Excess inventory management system

Standard vs. Actual Cost Analysis

• Identified the seven highest production parts in the Cleveland location.

• 2560,2239,2328,2242,2328,2242,2119,2243,and 3691

• Used the lean manufacturing technique, Gemba, to find out actual efficiencies for key processes. Injection, Assembly, Dip, Melt, and Finishing.

• Gemba: Act of making observations at the point of process in action.

• Collaborated with Finance to gain information on production rates of operators.

• Calculated contribution margin, fully absorbed margin, and total margin including SGA cost @ 23% of sales.

2560 Cost Analysis

• Customer: Balon Corporation

• Description: ½” needle valve

• 2014 Volume: 84,000

• 2013 Volume: 43,000

Selling Price $11.06

Actual Cost $4.11

Fully Absorbed Cost(Actual) $7.54

Total Cost w/SGA (Actual) $10.09

Total Margin(Standard) 8%

Total Margin(Actual) 9%

3691 Cost Analysis


• Description: Flapper

• 2014 Volume: 13,810

• 2013 Volume: 850


Actual Cost $11.10





2242 Cost Analysis


• Description: Body Valve

• 2014 Volume: 27,000

• 2013 Volume: 13,978


Actual Cost $5.91





Benefits Of Cost Analysis

• Main Benefit: To create a benchmark for the current margin and start identifying ideas to improve the efficiencies in production to expand the margin.

• Future application can be used for any part with the format created in the Excel Workbook to analyze if a part is in the ideal profit margin for Avalon.

• Saved on Engineering Drive under Operations Data

• Cost Analysis folder

Pre-Production Assessment

• Implemented a meeting to discuss current production process for parts

• Discuss Scrap/Yield rate for last known production run and past year

• Determine corrections for production processes

• Established new scrap rates based on data

• Document known issues with production run and scrap codes per part

• Assign various corrective actions with team member in charge of following up on the action next production run.

Action Items

• Update Routers with added operations or sequencing

• Result: Routers have correct operations to insure production is meeting customer requirements and quality, resulting in better data collection.

• Sale’s Team updated new Scrap Rate in Guardian Manufacturing Systems to complete correct number of ordered parts

• Result: New work orders have updated scrap rate in order to complete required order quantity

• Defect: Skewed data on closed work orders

• Cause: Non-trained operators

• Corrective Action: Establish a training seminar to show basic techniques for all operators to properly use Guardian Manufacturing Systems

• Results: Undetermined

• Scrap reduction

2386 Scrap Reduction

• Defect: Cracking at straightening

• Cause:

• Moving out of sand beds too quickly

• Stacking at knockout

• Corrective Action: Established a quality alert to leave molds in sand beds for 30 minutes

• Result: Decreased scrap by 89%

Work Order

Sales Price

Order Qty Scrap Qty

% of Inventory

Total

Before Alert

W06406 $57.79 112 100 74% $4276.46

After Alert

W08087 $57.79 276 1 74% $42.76

Scrap Reduction

$4,233.70

Projected(‘14-‘15)

$57.79 1096 4 Scrap Reduction

$46,698.96

Revised Routing System• Due to high scrap percentages in the plant this project took shape to start evaluating variables of

the router in order to decrease overall scrap

• Received various routers for high volume parts

• Router: Sheet that is printed off when work order is created with every process the part goes through in order to become a finished good.

• Includes metal type, number of pieces on a tree, order quantities, efficiencies, and specific instructions for each process.

• Collaborated with Engineering and Operations about current routing and possible improvements

• Implemented revised process sheets into production

• Created/updated log of all routers(electronic copy/hard copy)

Example Router Log

Part # Date Revised Part # Date Revised

1016 6/9/2014 2035 7/15/2014

1017 6/9/2014 2091 5/22/2014

1263 6/4/2014 2092 5/22/2014

1639 7/15/2014 2093 5/22/2014

1710 5/27/2014 2138 5/27/2014

1712 7/15/2014 2140 5/27/2014

1713 5/27/2014 2294 5/27/2014

1719 5/27/2014 2361 5/23/2014

1721 5/27/2014 2392 6/12/2014

Time Studies

• Created a stop watch via excel that allows user to track each step in various processes

• Injection, Assembly, Melt, and Finishing

• Used Time studies to track efficiencies of various part numbers in order to analyze variance of actual output to Avalon’s standards in Guardian Manufacturing Systems.

• If collected data had a large deviation from the standard, Engineering and Operations were notified and standards were assessed.

Example Time Studies

Part Number Operation Standard (pc/hr)

Actual (pc/hr) Difference (pc/hr)

3152 Injection 40 60 +206908 Injection 72 60 -122560 Assembly 84 177 +932790 Melt 276 351 +75

Recommended Action Items

• Assembly

• Lining up racks of parts next to stations for assembles to easily move to the next part

• Include a barrel of stems to attach to tree for hanging purposes to reduce excess movement

• Place empty racks next to stations for assemblers to place finish molds on racks immediately

• Melt

• Remove excess barrels and bins that impede movement of operators from furnaces to sand beds, and oven to sand beds

• Implement system to retain left over metal in furnaces after a heat is poured

• Centralize items needed for relining in order to reduce time furnaces are disabled

Correction Action For Lost Time Accident

Lost Time Incident• Location: Melt

• Shift: 1st

• Injury: Hurt Shoulder

• Cause: Device is not ergonomically fit for hefty molds

• Corrective Action: Create new piece of equipment that takes strain off operator

• Result: Battle Cart

Solution

Operations Board

• Created and organized new operations board layout

• Used to track Daily Goals, Through-Put, Safety, Monthly Scrap w/Scrap Codes

• Parts with scrap issues were assigned positon on board with due date, known issue, and person responsible for action item

• Future application: Implement boards in various areas of the plant in order to fully engage supervisors and operators in goals and standards.

Before After

On-Hand Inventory

• Plant floor has an Inventory Storage area for excess parts that can be placed there after shipment

• The department lead can then pull from the storage area for the next purchase order minimizing the parts needed to be made on the next production run

• Guardian Manufacturing Systems has a setting to keep track of On-Hand inventory if data is entered properly

• Using an excel spreadsheet a physical inventory was taken of the storage area then converted into Guardian Manufacturing Systems for the shipping department to easily update added and removed parts on a daily basis.

Before After

Results of Inventory Management

• Main result is organization has been implemented for ease of assess and allows the department to ship in stock parts on time.

• Cost savings are mainly intangible

• Ex. If a customer orders a part Avalon can then cross reference the inventory database to see if the part is in stock rather than manufacturing excess parts

• Guardian Manufacturing Systems is self updated so operators and staff can accurately track and reference on-hand inventory

What I Have Learned

• That an each stage of a process must be engineered to preform to standards.• Pre-production

• Flow of parts

• Work cells

• Factors of a cost analysis• How to combine finance with production principles

• To implement improvements you have to evaluate the situations at the source

• Effort drives results

• It takes a team to produce a product not individuals

• Have passion for what you do

What I really learned…

• I should change Bachelor's of Science to Bachelor’s of Microsoft Excel!

• Cliff is never happy, even if we do something right!

• First day of the month and we are already a week behind!

• Don’t touch the thermostat, everyone adjusts it anyway!

• Everything we do is “good, but could be better!”

• If you cant find a part, it has probably been shipped to Middleby in the Philippines!

• My most important duty as an intern was to make sure I made coffee for the office every morning!

final deliverables

Documents