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Improving Process Efficiency Lou-Rich, Inc.
Carter Tollefson
Advisor: Jon VanyoCompany Supervisor: Lee Gulbrandson
Company Overview
• Contract engineering and manufacturing
• Based in Albert Lea, MN
• Provides services to original equipment manufacturers (OEMs) in ag., medical device, food service, and many more
• Services include: engineering design for manufacturing services, material sourcing, welding, assembling, testing, CNC machining, fabrication, powder/liquid coatings, assembly, aluminum extrusions
Albert Lea
Process Description• 5 different freezers made – all follow similar processes
• Components (coils, flanges, and tubes) made
Process Continued• Washed
• Welding tube and flange
Process Continued• Soldering coil to tube
• *Base and inlet welding
Process Continued• Machining Processes
• Foaming
Incentives to Change
• Commitment to process improvement
• Investigate process efficiency opportunities
• Source reduction opportunities in washing system
Reasons for MnTAP Assistance
• Investigate/implement lean opportunities
• Look for opportunities to improve operator processes
• Determine opportunities for chemical and water savings
• Reduction of inventory in work cells
Approach
• Monitored and gained understanding of processes
• Documented own ideas for improvement
• Held brainstorming sessions and documented ideas for improvement • Identified the types of waste and where is it was occurring
Determining Solutions
• Timed processes
• Value-stream maps
• Spaghetti diagrams
• Consulting with companies
• Reviewed observations and notes
• Meetings with staff and operators
Current Layout and Part Movement
• Opportunities• Excess movement taking parts to and from work cells
• Loading time onto carts and machines
• Solutions• Implement conveyor system between work cells
• Change equipment orientation and locations
• Savings• ~260 hrs/year $7,100/year
Washer Location
Wa
sh
er
Co
nve
yo
rC
on
e
yo
r
Unload Bay
HO
OK
CO
VE
RA
GE
ON
HO
IST
OE
C C
art
Scale
HO
OK
CO
VE
RA
GE
ON
HO
IST
Ra
ck
Ra
ck
Load Bay
OE
C C
art
OE
C C
art
OE
C C
art
OE
C C
art
Cardboard Rack
Pa
ck O
ut T
ab
leB
ub
ble
Fo
am
Hooks Hooks
Incoming Lane
OK
to S
hip
16
Su
pp
ly
Ca
bin
et
WA
SH
ER
Resistance Solder
Water
Heater
Old Relic Work
Bench
Wa
sh
er
Insp
ectio
n
Ta
ble
In Feed Table
Water
Pump
Water Main
Post
Power
Brake Pad
Assembly
OEC
Cu
re O
ve
n
OE
C
Copper Tube Rack
StraightenerCopper CoilUnload Table
Coil
Super
Marke
t
Coil
Super
Marke
t
Long
Coils
Short
Coils
Short
Coils
Electrical
Panel
Tank
Heated
Rinse
Tank
Rinse
Venting and Plumbing for tanks
Tank
Rinse
Tank
Rinse
Tank
Soap
Tank
Prepare
Ele
c P
anel
Fix
ture
s
Sm
all
Pa
rts
Tank
with
Vent &
Heat
TankTankTank
Cart
Cart
So
lde
r Sta
tion
Gas Tanks
Te
st
Ta
nk
Nitro
Ta
nk
Drain
Washer
FluidCabinet Cabinet
Ch
ip H
op
pe
r
Electrical
Burnisher
Serrater
Tap DPSpout DP
Co
un
t
er S
ink
Debur
Sta
tion
Counte
rS
ink
DP
Burnisher
8 H
ole
Na
tco
DP
Work Bench
Profilometer
Rack
Rack Rack
Fo
am
Die
s
Storage Rack for Foam
Tubes
Wa
ter L
ea
k
Te
ste
r
Wo
rk
Be
nch
Fo
am
er
Fo
am
er
Fo
am
er
SS
Freezer
Cart
Freezer Rack
Boxes For
Shipping
Packaging Supplies
Packaging Supplies
Boxes For
Shipping
Foamer Pu
mp
Foamer
Fo
am
er
SS
Freezer
Cart
Fre
eze
r R
ack
Fre
eze
r R
ack
Cle
an
ing
Sta
tion
Wo
rk B
en
ch
Raw Saw
Cut Tubes
Raw SS
Drillin
g S
tatio
n
Wo
rk
Be
nch
Ch
ip H
op
pe
r
Electrical
Ch
ip H
op
pe
r
Electrical Tool
Chest
Wo
rk
Be
nch
Base
Flange
Superma
rket
Tubes TubesTubesTubes Tubes
Tube
Superma
rket
Coil
Ba
se
Fla
ng
e
Su
pe
rma
rke
t
Raw SS
Conveyor
Tig
Station
Tig
Welder Ele
c
Pa
ne
l
Rinses
Welding
Fixtures Tool
ChestSolder
Mounts
Long
Coils
Ca
rt
Cabinet
Fre
eze
r R
ack
Fre
eze
r R
ack
Fre
eze
r R
ack
Fre
eze
r R
ack
Tu
be
s
SS
Freezer
Cart
SS
Freezer
Cart
SS
Freezer
Cart
Freezer
Table
SS
Freezer
Cart
SS
Freezer
Cart
Wo
rk B
en
ch
Ele
c
Pa
ne
l
Solder Tank
Fan
Solder
Station Inline
Fluxer
Torch
Tanks
Table
Drai
n
Grat
e
Current Layout
Wa
sh
er
Co
nve
yo
rC
on
e
yo
r
Resistance Solder
Water
Heater
Old Relic Work
Bench
Wa
sh
er
Insp
ectio
n
Ta
ble
In Feed Table
Water
Pump
Water Main
Post
Power
Brake Pad
Assembly
OEC
Cu
re O
ve
n
OE
C
Copper Tube Rack
StraightenerCopper CoilUnload Table
Coil
Super
Marke
t
Coil
Super
Marke
t
Long
Coils
Short
Coils
Short
Coils
Electrical
Panel
Tank
Heated
Rinse
Tank
Rinse
Venting and Plumbing for tanks
Tank
Rinse
Tank
Rinse
Tank
Soap
Tank
Prepare
Ele
c P
an
el
Fix
ture
s
Sm
all
Pa
rts
Tank
with
Vent &
Heat
TankTankTank
Cart
Cart
So
lde
r Sta
tion
Gas Tanks
Te
st
Ta
nk
Nitro
Tank
Drain
Washer
FluidCabinet Cabinet
Ch
ip H
op
per
Electrical
Burnisher
Serrater
Tap DPSpout DP
Co
un
t
er S
ink
Debur
Sta
tion
Counte
rS
ink
DP
Burnisher
8 H
ole
Na
tco
DP
Work Bench
Profilometer
Rack
Rack Rack
Fo
am
Die
s
Storage Rack for Foam
Tubes
Wa
ter L
ea
k
Te
ste
r
Wo
rk
Be
nch
Fo
am
er
Fo
am
er
Fo
am
er
SS
Freezer
Cart
Freezer Rack
Boxes For
Shipping
Packaging Supplies
Packaging Supplies
Boxes For
Shipping
Foamer Pu
mp
Foamer
Fo
am
er
SS
Freezer
Cart
Fre
eze
r R
ack
Fre
eze
r R
ack
Cle
an
ing
Sta
tion
Wo
rk B
en
ch
Raw Saw
Cut Tubes
Raw SS
Drilli
ng
Sta
tio
n
Wo
rk
Be
nch
Ch
ip H
op
per
Electrical
Ch
ip H
op
per
Electrical Tool
Chest
Wo
rk
Be
nch
Base
Flange
Superma
rket
Tubes TubesTubesTubes Tubes
Tube
Superma
rket
Coil
Ba
se
Fla
ng
e
Su
pe
rma
rke
t
Raw SS
Conveyor
Tig
Station
Tig
Welder Ele
c
Pa
ne
l
Rinses
Welding
Fixtures Tool
ChestSolder
Mounts
Long
Coils
Ca
rt
Cabinet
Fre
eze
r R
ack
Fre
eze
r R
ack
Fre
eze
r R
ack
Fre
eze
r R
ack
Tu
be
s
SS
Freezer
Cart
SS
Freezer
Cart
SS
Freezer
Cart
Freezer
Table
SS
Freezer
Cart
SS
Freezer
Cart
Wo
rk B
en
ch
Ele
c
Pa
ne
l
Solder Tank
Fan
Solder
Station Inline
Fluxer
Torch
Tanks
Table
Drai
n
Grat
e
Proposed Layout
Foamer
Raw Saw
Cut Tubes
Water
Heater
Inspection
Table
In Feed Table
Water
Pump
Water Main
Post
Power
Ra
w S
S
Drilling Station
Wo
rk
Be
nch
Electrical
Panel
Tank
Heated
Rinse
Tank
Rinse
Venting and Plumbing for tanks
Tank
Rinse
Tank
Rinse
Tank
Soap
Tank
Prepare
Ele
c P
an
el
Fix
ture
s
Sm
all
Pa
rts
Tank
with
Vent &
Heat
TankTankTank
Cart
Cart
So
lde
r Sta
tion
Gas Tanks
Te
st
Ta
nk
Nitro
Ta
nk
Drain
Wo
rk B
en
ch
Ele
c
Pa
ne
l
Solder Tank
Rack
Rack
Rack
Packaging SuppliesPackaging Supplies
Pu
mp
Ch
ip H
op
per
Electrical
Sh
ort
Co
ils
Ch
ip H
op
per
Electrical
Ch
ip H
op
per
Electrical
Rinses
We
ldin
g
Fix
ture
s
Cabinet Cabinet
CabinetTool
Chest
To
ol
Ch
est
Solder
Mounts
Walkway
Rin
se
r
Wo
rk
Be
nch
ConveyorMove
able
Table
Cabinet
Conveyor
Foam DiesStorage Rack for Foam
Tubes
Water Leak
Tester
Work Bench
Foam
er
Foamer
Fo
am
er
Fre
eze
r Ra
ck
Boxes For
Shipping
Boxes For
Shipping
FoamerFoamer
CabinetTool
ChestCabinetTool
Chest
Solder
StationInline
Fluxer
Torch
TanksU-Shaped Washer
Copper Tube R
ack
Straightener Copper CoilUnload Table
CoilCoil
Tw
o w
ay-C
on
ve
yo
r
Tig
Station
Tig
Welder Ele
c
Pa
ne
l
Cle
an
ing
Sta
tion
Wo
rk B
en
ch
Raw Saw
Cut Tubes
Raw SS
Proposed Scotsman Layout
Burnisher
SerraterTap DPSpout DP C
ount
er S
ink
Debur
Sta
tion
Counte
rS
ink
DP
Burnisher
8 H
ole
Na
tco
DP
Work Bench
Profilometer
Washer
Conveyor
Conveyor
Grat
e
Double Conveyor with Bases and
Flanges
Co
ils
Tu
be
s
Fla
ng
es +
Ba
se
s
Spaghetti DiagramsCurrent Movement Proposed Movement
Coiling and Foaming Processes
• Opportunities• Inventory build up between process steps (non value adding time)
• Excess inventory
• Waiting
• Order of operations efficiency
• Solutions• Creation of standard work documents
• Training and explanation to operators
• Savings• ~420 hrs/year $11,500/year
Current State Part Washing Process
• Coil Washer• Not performing up to washing standards
• Chemical and water go straight to drain after one cycle
• Hallway Washer• Wash, Rinse, Blow off
• Operators paid to load and unload parts
• Parts from different areas washed in same washer
Proposed Improvements
• Remove coil washer• Power, water, and chemical savings
• No chemical and water being wasted
• Purchase New Washer and Place in Freezer Area• Dual-rinse and overflow system to conserve water and reduce operator
attention
• U-shaped design
• Current operators will be reassigned
• No waiting for non-freezer parts
• Elimination of forklifts and operator time transporting parts
Improvement Savings• Savings
Coil Washer
• ~1,270 kWh/year $100/year
• ~19,200 gal/year $120/year
• Chemicals - 866 gal/year $13,000/year
New Washer
• ~280 hrs/year $7,700/year
• ~29,300 gal/year $180/year
• Not using forklifts $1,750/year
• Not paying operators $2,550/year
Part and Finished Product Storage
• Opportunity• Large amount of inventory between work cells (space, $)• Trouble adjusting to order fluctuations (change-overs, shipping dates, part
moving and storage)• Distance and time to bring components needed to assembly areas
• Solution• Install finished goods supermarket (buffer for changes) • Part supermarket (ordered and proximity to cells)
• Pull system based on demand rather than push based on predictions
• Savings• ~50 hrs/year $1,400/year
Recommended Changes
Recommendation Water (gpy) Operators
(hrs/year)
Net savings
($/year)
Implementation
cost
Payback
period
Status
Layout and Conveyor
System0 260 $7,100 $5,000 8.5 months Proposed
Implement Standard
Work0 420 $11,500 0 Immediate Implemented
Implement New Washer 29,300 280 $12,180 $130,000 10.8 years Proposed
Remove Coil Washer 19,200 0 $13,220 $500 13 days Proposed
Implement Supermarkets 0 50 $1,400 $1,000 8.7 months Proposed
Totals 48,500 1010 $45,400 $136,500 ~3 years
Additional/Possible Future Projects
• Compressed Air System• Opportunity
-Air leaks and processes
• Solution
-Documentation of usage at in each area
-Ultrasonic leak tester to detect leaks on fixtures
• Rinse Water Disposal• Opportunity
-$2.50/lb to dispose of water which was $26,000 over last 2 months
• Solution
-Water treatment system
-Evaporator
-Change flux type
Personal Benefits
• Real-world experience and application of education
• Knowledge of lean manufacturing principals
• Independent learning
• Communication with operators and staff
• Communication with other companies
• Teamwork
• Cost/benefit analysis
Questions?
