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Process Improvement from a Materials Perspective. Solutions looking for problems or Problems looking for solutions?. Process Improvement from a Materials Perspective. Materials utilization How can processes be improved Eliminating/Replacing materials - PowerPoint PPT Presentation
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Waste Management and Research Center
ManufacturingExtensionPartnership
Process Improvement from a Process Improvement from a Materials PerspectiveMaterials Perspective
Solutions looking for problems or
Problems looking for solutions?
Waste Management and Research Center
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Process Improvement from a Process Improvement from a Materials PerspectiveMaterials Perspective
Materials utilization How can processes be improved
– Eliminating/Replacing materials Replacing Solvent with Aqueous Cleaners
– Reusing materials The Army has recently authorized the use of re-refined used
motor oil for use in ground equipment
– Recycling materials, and paper waste
– Consolidating/eliminating process steps.
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Expanding the RelationshipExpanding the Relationship Gather information
– Industrial or Manufacturing Directory SIC code Sales Size
– Dun & Bradstreet Company history Personnel profiles Financial report
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Expanding the RelationshipExpanding the Relationship
Made several visits to the facility– Observed what they do
– Met the Facility Manager and supervisors
Implemented Several Pollution Prevention Projects– Replaced Solvents with Aqueous Cleaners
– Introduced Membrane Filtration on Aqueous Cleaners
– Implemented Rag Recycling to Reduce the Volume of Solid Waste
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Expanding the RelationshipExpanding the Relationship
Trusted Useful Cost effective, and Credible.
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Follow Up CallFollow Up Call
Bumpers-R-Us Corporation– Mr. Sid E. Ways
Process line manager
This scenario is an example only and is not used to imply
that any member of NIST, IMEC, or any other organization
affiliated with NIST is not fully capable in the performance
of their duties.
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Good Job!Good Job! Solved another problem
– Increased client satisfaction,– Gained more trust and influence,– One more bean to count, and– Big project is on the horizon!!
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3 months later Pitch the “Big project”
– Programmable Logic Control (PLC)
Follow-UpFollow-Up
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Solutions Looking for Solutions Looking for ProblemsProblems
“If the shoe doesn’t fit -
– there’s something wrong with your foot” Promoting inappropriate changes
– Don’t see the whole picture Don’t understand the problem Don’t understand the solution
Solving the problem at the source.
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Project Opportunity Project Opportunity AssessmentAssessment
Set up a meeting– Reviewed the problem,– Mapped the process,– Found the root cause of the problem, and– Brainstormed a solution as a team.
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Coming UpComing Up How to develop a problem statement, How to map a production process, How to identify loss reduction opportunities, How to use a material loss assessment, and How to present your information.
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Next UpNext Up
Process Mapping and Root Cause Analysis
““When the map is When the map is complete…..the route complete…..the route
becomes clear”becomes clear”Ancient Chinese Proverb
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Process Analysis TechniquesProcess Analysis Techniques
Problem Definition Process Mapping Root Cause Analysis Site Assessments Identifying Loss Reduction Opportunities
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Problem DefinitionProblem Definition
Involves defining the…– What?– When? – Where?– Significance
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Problem Definition Step 1:Problem Definition Step 1:What?What?
What opportunity will you address?– What issue keeps facility manager awake at night?
What is their pain? What is their passion?
Key tools…– TOP 10 Self-Assessment– Opportunity Prioritization Matrix– Interviews/Surveys– Scrap/reject reports– Functional Assessments
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Problem Definition Step 2:Problem Definition Step 2:When?When?
When did the problem appear? Try to pinpoint precise dates/times Did problem coincide with something
recently implemented?
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Problem Definition Step 3:Problem Definition Step 3:Where?Where?
Narrow the boundaries! Did problem occur on …
– One shift?– One activity?– One supplier?– One material?– One machine?
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Historical vs. Newly-Emerged Historical vs. Newly-Emerged ProblemsProblems
0
1
2
3
4
5
6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Week Number
Rej
ect
Rat
e (
%)
Historical Reject Level Anomaly
Question: Where is the opportunity!?
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Problem Definition Step 4:Problem Definition Step 4:Significance!Significance!
Measure the impact of the problem Is it important to the company? Is it defined in terms of the company’s
decision maker can understand? Will the elimination of the problem improve
the company’s bottom line?
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Problem Definition SummaryProblem Definition Summary
Combine the…– What?– When?– Where?– Significance
Develop a problem statement or effect
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Initial Problem StatementInitial Problem Statement
NOTE: This is the problem as they PERCEIVE it
May only be a symptom of the actual root cause
Provides insight regarding parameters to monitor in process mapping
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Process MappingProcess Mapping
Why should we map a process?– Improve process knowledge and understanding– Identify and correct problem areas– Identify loss reduction opportunities– Determine usage and fate of raw materials and
other resources
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Three Questions Used in Three Questions Used in Process MappingProcess Mapping
What happens next? What are the inputs? What are the outputs?
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Complicating FactorsComplicating Factors
General vs. Detailed Processes Ancillary Processes Intermittent Processes Process Upsets Looping Processes Splitting Processes
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Military Root Cause AnalysisMilitary Root Cause Analysis
Vehicle Maintenance Repair of Vehicle Sent from Organizational
Shop Stated Problem (according to
Environmental Manager):– “Too Much Oily Wastewater is Being
Generated”
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General Process MapGeneral Process Map
Organizational Shop
Transportation to Higher Level Shop
Higher Level Shop
Organizational Shop
Vehicle Vehicle Repair Repair ProcessProcess
Repair Verified
Vehicle WashedAt Shop
Transported to Higher ShopFor Repair
Inspected at Higher Shop
Vehicle Washed toIdentify Source
of Problem
Parts Ordered
Repair is Made
Road Tested
Vehicle Washed to Check for Leaks
Vehicle Released to Organizational
Unit
Vehicle TransportedBack to Unit
Repair Need Identifiedby Operator
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Process loss problem exampleProcess loss problem example
Bumper manufacturer Stamping and electroplating operations Stated Problem (according to plant
manager):– “Electroplating operations can’t keep up with
stamping operations”
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General Process MapGeneral Process Map
Receiving Stamping
Powder Coating
Electroplating
Shipping
50,000 units/yr
20,000 units/yr
30,000 units/yr
50,000 units/yr
Electroplating Electroplating ProcessProcess(Time Study)(Time Study) Spray Clean RinseT2 170 sec.
Soak Cleaner(Plans for prewash after
stamping)T1 380 sec.
Electro CleanT3 380 sec.
Counterflow RinseT5 Dip 45 sec.
Acid HCL DipT6 35 sec.
RinseT7 Dip 10 sec.
Electro CleanT10 145 sec.
Counterflow RinseT12 Dip 10 sec.
Acid HCL DipT13 40 sec.
Counterflow rinseT14 35 sec.
Rinse ShuttleT16 170 sec.
Electroplating Electroplating ProcessProcess(Time Study)(Time Study)
Pre-dipT25 130 sec.
Deco CrT26 180 sec.
Tri Ni NickelT20 120 sec.
Brite NiT21 490 sec.
Dura Ni (Strike)T22 170 sec.
Semi Brite Ni PlateT17 46 min.
Semi Brite Ni PlateT18 46 min.
Semi Brite Ni PlateT19 46 min.
RinseSprayT23 45 sec.
Counterflow RinsesT27abc
35 sec.35 sec.35 sec.
Counterflow RinsesT24abc
5 sec.5 sec.5 sec.
dwell 3 sec.
OR
OR
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Root Cause AnalysisRoot Cause Analysis
Used to establish “cause-and-effect” Theory - there is a direct cause for a problem Determine the sources of problems
– Personnel
– Machine
– Method
– Material
– Management
– Environment
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Personnel Oriented ProblemsPersonnel Oriented Problems
Lack of training Manpower availability Safety/Industrial hygiene Labor Relations
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Machine Oriented ProblemsMachine Oriented Problems
Antiquated Equipment Wrong equipment for Application Under/over sized equipment Worn out equipment
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Method Oriented ProblemsMethod Oriented Problems Productivity (cycle time) Problems Bottlenecks Downtime and tool change time Wrong SOPs Lack of measurement Poor paperwork flow Delivery problems
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Management Oriented Management Oriented ProblemsProblems
Increased Costs Poor quality of Parts Customer relations Vendor relations Labor relations
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Material Oriented ProblemsMaterial Oriented Problems Too many rejected parts Excessive cost increases Too much waste generation Regulatory problems Inventory Control Problems Energy Efficiency Work in Progress
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Environment Oriented Environment Oriented ProblemsProblems
Government Regulations Competition Transportation Access Utility Access
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Too Much Oily WastewaterIs Being Generated
Vehicles Washed Before Repair
SOP
So Mechanic Can See Source of Leak
So That The Right Parts Are Ordered
So the Vehicle Can Be Fixed Right the First Time
Vehicle is Washed After Repair
SOP
To Make Sure Repair is Complete
So the Vehicle Can Be Fixed Right the First Time
Cleaning process inadequate
Buffing compoundhard to remove
Electroplating Can’t Keep Up
Not enough capacity
Process takes too long
Too many steps
Parts don’t get clean(Buffing compound residue on parts)
Cleaning process inefficient
WWTP can’t handle it
Too much waste to treat
WWTP not big enough
Can’t run 2nd line
FishWMRC
?
Electroplating Process(Materials Study)
Counterflow RinseT12 5.4 gpm
T12a
Acid HCL DipT6 Etches surface; 10-15% HCl dumped every 1-2 weeks
Counterflow RinseT5 4.1 gpmremoves electroclean residueT5a
Electro CleanT3 3,920 gal. caustic NaOH10-12 oz/gal; 170-180° FDumped every 45 days
Spray Clean RinseT2R.O. water rinse ambient temp. 3gpm bleed
Soak Cleaner(Plans for prewash after
stamping)T1
3,140 gal10-12 oz/gal180° F, pH 1430 day dump
Counterflow RinseT14 5.4 gpm
T14a
RinseT7 6 gpm optimumruns less
Electro CleanT10 2300 gal.dumped every 60 days to T3
Acid HCL DipT131,832 gal
10-15% HCL; dumped every 2 weeks to acid dump tanks
Rinse ShuttleT16 1-3 gpm
Electroplating Process(Materials Study)
Pre-dipT25
Deco CrT26
Tri Ni NickelT20
Brite NiT21
Dura Ni (Strike)T22
Semi Brite Ni PlateT17
Semi Brite Ni PlateT18
Semi Brite Ni PlateT19
RinseSprayT23
Counterflow RinsesT27abc
Counterflow RinsesT24abc
dwell 3 sec.
OR
OR
High sulfurNi strike3:59 cycle; 7,250 gal.
8,700 gal; 4 bayspH = 4.0
2,100 gal, Ni bathdeposits particles (non-conductive) with Ni
3-4 sec.; 64,000 pores/in2
Not functional; will be usedto replace dragout & evap.
5-10 gpm1,300 gal each
1,832 galchromic - 202 gal. &sulfuric - minimal .01oz./gal
2,620 gal35-40 oz/gal hex Crsulfuric acid
5.4 gpm
Cleaning process inadequate
Buffing compoundhard to remove
Electroplating Can’t Keep Up
Not enough capacity
Process takes too long
Too many steps
Parts don’t get clean(Buffing compound residue on parts)
Cleaning process inefficient
Cleaning & pickling processes
cause contamination
WWTP can’t handle it
Too much waste to treat
WWTP not big enough
Cleaning & acid tanks dumped too
often
Can’t run 2nd line
Tanks become contaminated
Dwell times over plating tanks are
too short
Not enough capacity
Too much metals
drag out
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Identifying Loss Reduction Identifying Loss Reduction OpportunitiesOpportunities
Discuss/challenge sub-causes Multi-vote to prioritize problems Generate Loss Reduction Opportunities
– Brainstorm ideas– Select & implement best solution(s)– Monitor results– If problem persists, implement alternative
solutions
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Loss Reduction TechniquesLoss Reduction TechniquesPersonnelPersonnel Oriented ProblemsOriented Problems
Improve employee training Improve employee participation Develop quality circles Improve safety conditions Improve employee supervision
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Loss Reduction TechniquesLoss Reduction Techniques(Machine Oriented Problems)(Machine Oriented Problems)
Modify existing equipment Adopt new processes and technology Redesign/reformulate products Implement preventative/predictive
maintenance Recycling of by-products and wastes
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Loss Reduction TechniquesLoss Reduction Techniques(Method Oriented Problems)(Method Oriented Problems)
Improve operating practices Improve inventory control Improve housekeeping Process optimization Standardize procedures Waste segregation Process water reduction
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Loss Reduction TechniquesLoss Reduction Techniques((Material Oriented Problems)Material Oriented Problems)
Raw material modification/substitution Improved inventory control Implement Statistical Process Control
(SPC) methods Process optimization
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Loss Reduction TechniquesLoss Reduction Techniques(Management Oriented Problems)(Management Oriented Problems)
Better planning and scheduling Improved cost allocation and accounting Implement continuous improvement
strategies Improve communications to employees
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Loss Reduction TechniquesLoss Reduction Techniques(Environment Oriented Problems)(Environment Oriented Problems)
Relocate operations Develop alternative shipping methods Energy Efficiency
Cleaning process inadequate
Buffing compoundhard to remove
Electroplating Can’t Keep Up
Not enough capacity
Process takes too long
Too many steps
Parts don’t get clean(Buffing compound residue on parts)
Cleaning process inefficient
Cleaning & pickling processes
cause contamination
WWTP can’t handle it
Too much waste to treat
WWTP not big enough
Cleaning & acid tanks dumped too often
Can’t run 2nd line
Tanks become contaminated
Dwell times over plating tanks are too
short
Not enough capacity
Too much metals
drag out
Brainstorm Ideas for Loss Reduction
Personnel Machine Method Material Management Environment
Cleaning process inadequate
Buffing compoundhard to remove
Electroplating Can’t Keep Up
Not enough capacity
Process takes too long
Too many steps
Parts don’t get clean(Buffing compound residue on parts)
Cleaning process inefficient
Cleaning & pickling processescause contamination
WWTP can’t handle it
Too much waste to treat
WWTP not big enough
Cleaning & acid tanks dumped too often
Can’t run 2nd line
Tanks become contaminated
20% of the solutions solve 80% of the problems
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Materials Loss AssessmentsMaterials Loss Assessments
From Webster’s Dictionary: Map - to explore or make a survey of Assess - to evaluate or appraise Audit - an examination of records or
accounts to check their accuracy
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Materials Loss AssessmentsMaterials Loss Assessments
Aspects of Assessments (Audits)
Materials Balance-what comes out should equal what goes in
Improved Process Knowledge-better general understanding of how the system works
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Materials Loss AssessmentsMaterials Loss Assessments
Goals and Products of the Assessment
Accurate Process Map Accurate Facility Layout Compilation of Inputs and Outputs Ideas on How to Improve the Process
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Materials Loss AssessmentsMaterials Loss Assessments Opening Meeting-discuss what you will do
Walkthrough/Process Examination-do it
Closing Meeting-discuss what you did and future actions
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Materials Loss AssessmentsMaterials Loss Assessments
Aspects of the Opening Meeting The right people: management, labor, line
personnel, EH&S An initial process map An initial plant layout Pertinent data and records Organization of the visit’s activities
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Materials Loss AssessmentsMaterials Loss Assessments
The right people Management-authority to act Labor Shop Supervisor or Area Manager EH&S-to ensure regulatory compliance
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Materials Loss AssessmentsMaterials Loss Assessments Process Map
Plant Layout
These are not the same thing!! For example:
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Materials Loss AssessmentsMaterials Loss Assessments
Pertinent Data and Records Standard Operating Procedures Production Specifications Production Logs Vendor Information Purchasing Records Inventories MSDS’s Manifests, air data, sewer data, TRI data, etc.
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Materials Loss AssessmentsMaterials Loss Assessments
Organization Safety requirements-PPE Single or multiple groups Who goes where? Who does what? When and where does the group reassemble?
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Materials Loss AssessmentsMaterials Loss Assessments
Walkthrough/Process Examination Managing Inventory Production Processes Operating Practices Material Substitution Equipment Modification or Substitution By-product Concentration, Reuse, and Recycling
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Materials Loss AssessmentsMaterials Loss Assessments
Managing Inventory “First in First Out” to reduce out of date Process and inventory by-products the same as raw
materials Control access to raw materials-pharmacy concept Purchase in appropriate quantities and containers Continuously evaluate less hazardous substitutes Implement Just-in-time delivery
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Materials Loss AssessmentsMaterials Loss Assessments
Production Processes and Operating Practices Spill/leak prevention By-product segregation Improved raw material handling Preventive and predictive maintenance Employee training Effective supervision Employee participation programs Production planning and scheduling Cost allocation and accounting
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Materials Loss AssessmentsMaterials Loss Assessments
Material Substitution Use more efficient raw materials
e.g. switch to aqueous cleaner use dry machining to eliminate waste
coolant More transfer efficient coatings
(e.g. powder coat)
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Materials Loss AssessmentsMaterials Loss Assessments
Equipment Modification/Substitution Modificatione.g. New parts racking
Improved seals-teflon for neoprene
Better controls-Automated or PLC
Substitution (new equipment)e.g. Energy efficient dryer
FRP tanks for steel
Phase out obsolete equipment
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Materials Loss AssessmentsMaterials Loss Assessments
By-product Concentration/Reuse/Recycling Concentration-Membrane Filtration to
Concentrate Wastes in Aqueous Cleaners Reuse- potato starch from rinse water, peels
for animal feed Recycling-cleaning agent recovery from
aqueous cleaning baths
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Materials Loss AssessmentsMaterials Loss Assessments Closing Meeting
– Break to get organized
– Discuss what happened
– Correct inaccuracies in maps and data
– Generate loss prevention options Brainstorm ideas Team discussion
Determine next actions and assign tasks
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Keys to a Successful Keys to a Successful AssessmentAssessment
Asking QuestionsDo you have to dump that coolant every two weeks?-closed
How do you decide when to dump the coolant?-open
Is there any way to reuse this material?-closed
Why does this material become a waste?-open
Have you tried any substitutes?-closed
What substitutes have you tried? How did they work?-open
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Keys to a Successful Keys to a Successful AssessmentAssessment
Exploring a Process/System Ask many questions, even if they seem stupid Use other industries as examples Generate many ideas Do not overlook the obvious Look in avoided places Look at the big picture Examine a variety of information Never explore alone
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Loss Reduction OpportunitiesLoss Reduction Opportunities
Previous modules– Gathered information,– Mapped process,– Found the root cause of the problem,– Assessed the process, and – Brainstormed some solutions
Present the solutions as a project.
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Material Loss PresentationMaterial Loss Presentation You could report on the project’s -
– Expected cost savings– Expected capital expenses– Expected labor costs, and– Expected project results
Some projects may be sold before you leave, and Others will have to be compared financially with
completing company projects.
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Corporate Priorities for Fund Corporate Priorities for Fund AllocationAllocation
1 – Cost Avoidance projects – Reduced head count– Reduced water usage
2 - Profit-sustaining projects– Equipment maintenance
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Case-in-PointCase-in-Point
MARWI USA - Bicycle parts manufacturer– Problem - Eliminate WWTP operations
WMRC Presentation - – Use Membrane filtration to replace WWTP
– Save $$$ on WWTP operations & chemicals
– Save $$$ on parts washer chemicals
– Plant Manager had one question? How will this change increase my production?
– Not interested!
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Right Ladder, Wrong WallRight Ladder, Wrong Wall Project focus was wrong Root Cause of problem - Increase production Should have looked at Production Changes
– Lost time = Labor Dump/Recharge Tank 8hrs X 26 dumps per year = 208 hours downtime/year Production Loss of 250 units per hour
– Proposed change = Increase of 52,000 units/year
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Competing with Other ProjectsCompeting with Other Projects Cost savings alone won’t compete successfully. Characteristics of a project that influence project
acceptance include:– Relative advantage of the project work
Over idea superseded.
– Compatibility With existing company needs, values, and experiences.
– Complexity Perception of the difficulty to understand and use.
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Competing with Other ProjectsCompeting with Other Projects
– Trialability Degree to which an implemented change can be
experimented with.
– Observability How visible are the project’s results.
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Building a Better Building a Better “Projecttrap”?“Projecttrap”?
Use Membrane filtration to replace WWTP– Save $$$ on WWTP operations & chemicals– Save $$$ on parts washer chemicals
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Building a Better Building a Better “Projecttrap”?“Projecttrap”?
Membrane Filtration would - – Increase production by 5%
A relative advantage over the WWTP
– Increase production floor space by 11% Compatible with the company’s needs
– Extend process cleaning bath life Complexibility of operation is minimal
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Building a Better Building a Better “Projecttrap”?“Projecttrap”?
– Offered a pilot test to demonstrate unit Ease of operation compared to WWTP
– Employed plant personnel to run unit Hands on experience for familiarity
Change Agent gains– More trust,– More credibility, and– More success.
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Total Cost AccountingTotal Cost Accounting
Total Cost Accounting (TCA) is a generic term for the long-term, comprehensive analysis of the internal costs and savings of loss prevention, energy efficiency, and other production projects.
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Total Cost AccountingTotal Cost Accounting
TCA in less than 8 hours - Not possible! Applying the fundamentals of TCA are possible See the whole picture
– Using all costs and expenses involved
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Total Cost AccountingTotal Cost Accounting
Direct Costs– Directly linked with project or process
Capital Expenses– Equipment and Installation,– Project Engineering,– Utility Connections, and– Buildings.
Operating and Maintenance– Raw Materials,– Labor, and– Utilities.
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Total Cost AccountingTotal Cost Accounting
Hidden (Indirect) Costs– Costs “lumped” into general admin. accounts
Value of lost production, Value of rejected parts, Lost machine time, Insurance, and Regulatory permits, costs, and monitoring.
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Total Cost AccountingTotal Cost Accounting Contingent Liability Costs
– Categories Accidental Releases
– Superfund sites and other clean-ups
Legal damages and settlements– Fines and penalties
– Attorney fees
– Difficult (if not impossible) to quantify Event uncertainty, and Costs & frequency difficult to estimate
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Total Cost AccountingTotal Cost Accounting
Intangible Cost– Even harder to quantify
Increased sales due to product improvement, Improved Corporate Image, Customer Acceptance, and Community Goodwill.
ISO 9000 and ISO14001 Certification– Improved Corporate Image!
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Total Cost AccountingTotal Cost Accounting
4 projects at Bumpers-R-Us– Evaluate spray cleaning to remove buffing compound.– Evaluate alternative buffing compounds– Evaluate membrane filtration for in-process recycling– Evaluate diffusion dialysis for acid recycling
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Total Cost AccountingTotal Cost Accounting
Estimating Costs and Benefits hierarchically– If Direct costs are sufficient to warrant a project
No estimate required for other categories
– If Direct Costs are not sufficient, then estimate - Hidden costs, then Contingent Liability Costs, and finally Intangible Costs
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Loss Reduction OpportunitiesLoss Reduction Opportunities
Problem: Cleaning Process Inadequate Project Opportunity: Evaluate spray cleaning
step to remove buffing compound - $1.5 k Resources: WMRC parts cleaning lab Solution: Install spray washing nozzle on
stamping line
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Install Spray Washing Nozzle Install Spray Washing Nozzle on Stamping Lineon Stamping Line
$0.00
$150,000.00
$300,000.00
$450,000.00
$600,000.00
$750,000.00
$900,000.00
Direct TCA
Hidden(includes lostproduction andwaste disposal)
Direct (includes2nd HCl dip, 2ndrinse, & labor)
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Install Spray Washing Nozzle on Install Spray Washing Nozzle on Stamping LineStamping Line
$0.00
$3,000.00
$6,000.00
$9,000.00
$12,000.00
$15,000.00
Project Costs $14,700.00*
Consultant
Maintenance
Water
New plumbing
Labor
Chemicals
* Less the cost of 2nd cleaning process
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Install Spray Washing Nozzle on Install Spray Washing Nozzle on Stamping LineStamping Line - Payback - Payback
Direct Costs
Process Cost = $136,150
Investment = $ 14,700
Savings = $122,650
Payback = 1.5 months
TCA Costs
Process Cost = $906,150
Investment = $ 14,700
Savings = $872,000
Payback = 6 days
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Loss Reduction OpportunitiesLoss Reduction Opportunities
Problem: Buffing compound hard to remove Project Opportunity: Evaluate alternative
buffing compounds - $2k Resources: Buffing compound vendors & WMRC
parts cleaning lab Solution: Switch to alternative buffing compound
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Switch to Alternative Buffing Switch to Alternative Buffing CompoundCompound
$0.00$100,000.00$200,000.00$300,000.00$400,000.00$500,000.00$600,000.00$700,000.00$800,000.00$900,000.00
$1,000,000.00
Direct TCA
Hidden(includesdecreasedproduction)
Direct (includesbuffingcompound &2nd stagerinse)
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Switch to Alternative Buffing Switch to Alternative Buffing Compound - PaybackCompound - Payback
Direct Costs
Investment = $ 0.00
Savings = $134,070.00
Payback = Immediately
TCA Costs
Investment = $ 0.00
Savings = 1,038,140.00
Payback = Immediately
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Loss Reduction OpportunitiesLoss Reduction Opportunities
Problem: Cleaning tanks become contaminated Project Opportunity: Evaluate membrane
filtration technology for in-process recycling - $6k Resources: WMRC pilot microfiltration system Solution: Implement in-process recycling system
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Implement In-process Implement In-process Recycling SystemRecycling System
$50,000.00
$150,000.00
$250,000.00
$350,000.00
$450,000.00
$550,000.00
$650,000.00
$750,000.00
$850,000.00
$950,000.00
Direct TCA
Hidden (lossproduction of15,000bumpers)
Direct(cleaningchemicals)
Waste Management and Research Center
ManufacturingExtensionPartnership
Implement In-process Implement In-process Recycling SystemRecycling System
$0.00$10,000.00$20,000.00$30,000.00$40,000.00$50,000.00$60,000.00$70,000.00$80,000.00$90,000.00
Project Costs$81,420.00*
Consultant
Chemicals
Maintenance
Capital
*First year costs
Waste Management and Research Center
ManufacturingExtensionPartnership
Implement In-process Recycling Implement In-process Recycling SystemSystem - Payback - Payback
Direct Costs
Process Cost = $61,400.00
Investment = $63,000.00
Savings = $42,980.00
Payback = 1.5 years
TCA Costs
Process Cost = $831,400.00
Investment = $ 63,000.00
Savings = $812,980.00
Payback = 28 days
Waste Management and Research Center
ManufacturingExtensionPartnership
Loss Reduction OpportunitiesLoss Reduction Opportunities
Problem: Acid tanks become contaminated Project Opportunity: Evaluate diffusion dialysis
technology for recycling acid - $4.7k Resources: WMRC pilot diffusion dialysis system Solution: Implement acid recycling system
Waste Management and Research Center
ManufacturingExtensionPartnership
Implement Acid Recycling Implement Acid Recycling System - PaybackSystem - Payback
Direct Costs
Process Cost = $258,829.00
Investment = $ 74,700.00
Savings = $181,500.00
Payback = 2 years
TCA Costs
Process Cost =$1,028,829.00
Investment = $74,700.00
Savings = $1,028,829.00
Payback = 9 months
Waste Management and Research Center
ManufacturingExtensionPartnership
TCA AdvantagesTCA Advantages
Most supportable cost estimates– Direct or Operational Costs, and– Hidden or Indirect Costs.
Minimizes time spent on uncertain estimates– Contingent Liability Costs, and– Intangible Costs.
Waste Management and Research Center
ManufacturingExtensionPartnership
Process Improvement from a Process Improvement from a Materials PerspectiveMaterials Perspective
Understanding the process– Process mapping – Root cause analysis
Assessing the process– Team approach
TCA Concepts– Hidden or indirect costs
Waste Management and Research Center
ManufacturingExtensionPartnership
Process Improvement from a Process Improvement from a Materials PerspectiveMaterials Perspective
Success!!
Waste Management and Research Center
ManufacturingExtensionPartnership
Process Improvement from a Process Improvement from a Materials PerspectiveMaterials Perspective
Questions and Answers
Proposed or Actual Projects