REVIEW OF THE CURRENT SITUATION
For the last two months, we have had a slow creep-up of order backlog in the MLD250 department, specifically the Plasti-Brack molding group. We now have a 5 to 6 week backlog. This is entirely unacceptable to our customers who have been accustomed to getting orders shipped almost immediately or within a week of placing their orders. This may have a negative bearing on the business and it is with great concern and swiftness that this be sorted out. This report will seek to identify the problem areas and the possible solutions to this problem in order to reduce and gradually eliminate the current backlog in clientele orders and increase capacity and productivity of the machinery in place.
After several days of investigation and holding discussions with seal individuals at EMC, The following problem areas and concerns have been identified.
Plastic inserts coming from MG 251 have been experiencing a high reject rate. After detailed investigation, MG 403 seems to be experiencing a reject rate of about 12% to 20%, this was found in the plastic-Brack Assy and depends on which plastic is inserted.
Some of the molding dies are quite old. A good number of the molding cavities are closed off. This can be attributed to the fact that the previous ones were of poor quality. Furthermore, the clogged molding cavities are responsible for the reduced yield rates from the standard expectations. Some of the dies, such as P90, P120B and P135, have one of their cavities closed off. However, this is common according to our molding supervisor, Swenson. He believes that according to the quality and age of the dyes, even more molding cavities should be closed off.
We currently have four molding machines. Machine M101 has been noted to have a record of unscheduled repair and downtime. This machine has played a huge role in the backlog of delivery of orders.
GOALS AND OBJECTIVES
Goals
For this project I envision three major goals:
- Reduce the amount of backlog of orders that we are currently experiencing.
- Increase the quality of our output or product to ensure clientele satisfaction.
- Objectives
I have envision the following objectives for this project:
- Increase our capacity
- Reduce our delivery time down to acceptable levels
- Increase our productivity
- Lower our cost
ACTIONS/PLANS
There are numerous areas of concern that need to be dealt with before any meaningful progress can be realized. I will seek to implement a step-by-step plan that will see us sort out the areas of concern, at the same time setting up the platform for future progress and growth.
Firstly, to eliminate the problem with back log, we need to either repair or replace the molding machines. If we choose to repair the machines, specifically machine M101, the machine will undergo a complete overhaul we also need to replace MG251. This will increase capacity in the machine group and eliminate the 12% to 20% plastic insert reject rate. Repairing the M101 machine will cost us $100,000. We can also choose to replace machine M101 or the whole MG251 machine group with new 250-ton molding machines. Each new molding machine would cost us $250,000.
Secondly to take care of quality, we need to replace the plastic injection molding dies. Each costs $25,000 or $30,000 if they are designed for a quick change over. To increase productivity while reducing delivery time, we can opt to purchase the plastic injection dies that are designed for a quick change over. This will take around 6 weeks if they are manufactured by an outside tool and die company.
Thirdly, there is need to switch to better grade plastic resin. This will produce better quality. We have the option of switching to RP625 which costs $0.30 per pound or RP515 which costs $0.28 per pound. According to Mark Monin, our purchasing manager, RP625 is of better quality while additionally, it would reduce some of the scrapped materials generated by MG251. RP515 remains untested and he is unsure about it.
Fourthly, there is the possibility to reduce the setup times (die changeover) for both blanking and molding. Tom Tucker says this can be accomplished by modifying the dies with quick clamps and other mechanisms. Modifying these dies would reduce the setup times from between 3½ and 4½ hours to between ½ to 1 hour time spans.
Finally to increase our capacity and productivity, we could institute a second shift. This would cost us more in terms of wages since there is a 15% shift premium paid to those who work on the second shift. Another option would be the use of overtime by adding 2 hours to the daily single shift and up to 10 hours on Saturdays. The overtime would earn employees an additional half-time for hours over 40 per week.
EXPLANATION/JUSTIFICATION
The plan will accomplish the set objectives and goals in the following ways;
- Repairing or replacing the molding machine would eliminate the problem of backlog
- Replacing the plastic injection dies and switching to better grade plastic resin would increase quality of our output.
- Switching to better grade plastic resin would reduce the scrapped materials generated by MG251. This would reduce the wear and tear on MG251 and thus reduce costs of repair on the machine group.
- Modifying the dies with quick clamps and other mechanisms would reduce setup times and hence increase productivity.
- Instituting a second shift or overtime would increase our productivity and capacity. Our production would be up to around 50% to 100% above the current production levels. However, I would advise the use of overtime, as it is within the company budget.
Should the plan be implemented, the company will eliminate the cases of backlog, increase quality, productivity and capacity.
