Booth Associates

Scrap and rework levels are too high, making it difficult to meet customer demand on schedule.  We try to inspect our products for quality, but sometimes defective products are shipped to customers. The production line frequently has problems that cause it to go down and we have to make constant adjustments.Manufacturing and Production

Do You Recognize Any of These Situations in Your Company?

The following situations are commonly found in the production areas of many organizations.

  • Too many defective units are produced.
  • Scrap and rework levels are too high.
  • Delays in filling orders is costing us customers.
  • It's impossible to produce good products when our incoming materials are so poor.
  • The production line is down several times a day. It's costing us a fortune.
  • We seem to be making constant adjustments to the production line, but things don't get better--in fact, they sometimes get worse.

Here are some examples of how Booth Associates can help:

Process improvement

An electrical component has been unstable since development. The variation from unit to unit is high and the company averages about 2.1 percent (0.021) defective units. The average daily production is 13,200 units with a production cost of 1.435 dollars per unit. Defective units must be scrapped.

The average number of scrapped units per day is 277.2, with a daily scrap cost of about $398. A month having 28 production days will suffer a loss of $11,144 per month.

A designed experiment is conducted using one engineer and one technician for one week (cost = $1,442). Material costs for the experiment are $835. The experimental results permitted reduction of the scrap rate to about two tenths of one percent (0.002) defective units.

This results in a monthly scrap loss of only $1,061. This is a monthly savings through scrap reduction of $10,083, or an annual savings of $120,996 for a total outlay of only $2,277. This is a return on investment of 53 to one in the first year alone.

Process downtime

A company that manufactures milled, metal replacement parts, found that changes occurred gradually in the production process. These changes caused the outgoing product to fall out of specifications. When this happened, several hundred non-usable units would often be produced before the problem was discovered. The entire line would then have to be taken down, and all production workers would be at a standstill until the faulty parts were located and replaced.

On the average, this type of problem would occur over 7 times per month. When the problem occurred, the average number of non-usable units produced was 432 units. The average downtime on the line was 1.23 hours, which left 84 workers standing idle for the entire time. The cost (at $2.584 per unit) for the non-usable units was $7,814 per month. In addition, the idle time of the 84 workers was 723 hours per month. At an average wage of $8.43 per person, the wasted labor cost was $6,095 per month. The total of these costs was $13,909 per month.

Statistical process control was put in place that permitted early detection of the problem (before any defective units were produced) which allowed the iPad 4 Cases Canada problem to be corrected between shifts-- eliminating virtually all idle time as well as non-usable units. The annual savings is $166,908 per year.
 

How Booth Associates Can Help

If you recognize any of these or have other problems in your company, we can help you. We have helped many companies improve their bottom line, and we'll do the Fairy Tail Cosplay Costumes same for you. Please see our list of services and contact us.