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Traditional View
Flexibility for various components Now Output Quality, SPC
Each Company has a different method of calculating the ROI. It also depends upon the Companys perspective or dominating reasons. The process followed by some companies are : 1. Machine hour Rate Method 2 Internal Cost ROI Model. 3. Cost / Component Model
MHR Model
This is a very common type of model followed by Small & medium Job shops. The MHR is market driven & if the Investment achieves it, the decision is made. Disadvantages: The overheads of every company is different & the MHR route will not give the required ROI. Older & Faster Machines give better ROI Varies from Component to Component High Tool cost parts give lower ROI
Case Study 1
Conclusion
1.Offering an initial discount is a one Time benefit to customer. 2. Cycle time reduction gives higher MHR hourly 3, It also gives additional production capacity. 4. For a product manufacturer, it means that he can sell at a lower price . 5.The above does not apply in a cell where this machine is not the bottleneck machine.
Hired people
Setup an Infrastructure
Detail
Quality
Parameter
Customer Complaint Customer Returns In-Process Rejection
100
100 100 35 1 3 96 100 10 0 0 75 5 1 80
ppm
ppm % No % % % % No ppm ppm % % No %
To Improve OEE ,We have to take corrective Action for Major down times
3. INSPECTION
Time(hrs)
4. PROCESS PROBLEM 5. NO LOAD 6. NO OPERATOR 7. TOOL CHANGE / INSERT INDEXING 8. CHIP REMOVAL
IIN
O P
RL
PR P
LD
Down time
TC H
Time(hrs)
IIN
O P
R L
R P P
LD
M B
Down time
TC H
ET T
IN
Benefits:Customer
On Time Delivery 80% -95%.
TOTAL TIME(hrs)
Company
Productivity increased @ 90%. Setting time reduced from 179min 76min. OEE Improved 50%-55%.
SEP
T OC
V NO
MONTH
DEC
JAN
FEB
R MA
55 49
50 40 30 20 10 0
Self
Morale improved. Improved communication & Team Work Skills.
Different codes used while setting
30
27 21 19 19 17 8 4 0.58
Time(hrs)
IIN
O P
RL
PR P
LD
SE TT
M B
Down time
TC H
IN
JAN
1st WEEK 1st WEEK 1st WEEK
FEB
1st WEEK 1st WEEK 1st WEEK
MAR
1st WEEK 1st WEEK 1st WEEK
APR
1st WEEK 1st WEEK 1st WEEK
MAY
1st WEEK 1st WEEK 1st WEEK
JUN
1st WEEK 1st WEEK 1st WEEK
COLT 1
LT 16 S COLT 2 CUB COLT 3 LT16 F1
2nd WEEK
2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 1st WEEK 1st WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK
2nd WEEK
2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 1st WEEK 1st WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK
2nd WEEK
2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 1st WEEK 1st WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK
2nd WEEK
2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 1st WEEK 1st WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK
2nd WEEK
2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 1st WEEK 1st WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK
2nd WEEK
2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 2nd WEEK 1st WEEK 1st WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 3rd WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK 4th WEEK
WINNER XL
LT16 F2 LT 20 C LT 20 F2 LT 20 F1 LT2 F1
LT 2 F3
LT 25 MCV 400 S LT 16 J1 LT 16 J2 MVC 400 2 MCV 400 1 MCV 320 1 CHALLANGER
Result:
600 500
TOTAL TIME(hrs)
537
340 193
210
SEP
T OC
V NO
MONTH
DEC
JA N
FEB
R MA
3717
IIN
O P
RL
PR P
LD
SE TT
M B
Down time
Tool Presetting Improve 2S Better Planning
TC H
IN
Tool Change
200 180 160
Down time in Hrs
157.3
140 120 100 80 60 40 20 0 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Month
350 300
Down time(hrs)
Insert Indexing
297.1 298.2 267.8 252.4 176.1
1S DWM 2S
Suggestions
3S
Kaizens
Techniques
My Machine
Poka yoke
Containerization
Rack removal
1.ITR
5.Company specifics
2.OEE
PROFIT
4.Product Quality/
TEI
3.VAPCO
2S
Why-Why analysis
OEE
SMED
MY MACHINE
2S
KAIZEN
VAPCO
MY MACHINE
SMED
Key Takeaways
Understand the Customer specified & unspecified needs before making a sale Give him a solution & not only a Product. Help him to realise what he wanted to achieve. Handhold him in this mission. Study his process & setup & suggest a best fit for his industry. Suggest some best practices to improve his productivity.
Shiv Khera
Be a Winner