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Improving Process Efficiency
Lou-Rich, Inc.
Carter Tollefson
Advisor: Jon Vanyo
Company 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
WasherConveyor
Cone
yor
Unload Bay
HOOKCOVERAGEONHOIST
OECCart
Scale
HOOKCOVERAGEONHOIST
RackRack
Load Bay
OECCart
OECCart
OECCart
OECCart
Cardboard Rack
PackOutTable
BubbleFoam
Hooks Hooks
Incoming Lane
OKtoShip
16
Supply
Cabinet
WASHER
Resistance Solder
Water
Heater
Old Relic Work
Bench
Washer
Inspection
Table
In Feed Table
Water
Pump
Water Main
Post
Power
Brake Pad
Assembly
OEC
CureOven
OEC
Copper Tube Rack
StraightenerCopper Coil
Unload Table
Coil
Super
Marke
t
Coil
Super
Marke
t
Long
Coils
Short
Coils
Short
Coils
Electrical
Panel
Tank
Heated
Rinse
Tank
Rinse
VentingandPlumbingfortanks
Tank
Rinse
Tank
Rinse
Tank
Soap
Tank
Prepare
ElecPanel
Fixtures
Small
Parts
Tank
with
Vent &
Heat
TankTankTank
Cart
Cart
SolderStation
Gas Tanks
Test
Tank
Nitro
Tank
Drain
Washer
FluidCabinet Cabinet
ChipHopper
Electrical
Burnish
er
Serrate
r
Tap DPSpout DP
Count
erSink
Deb
ur
Statio
nCou
nterSinkDP
Burnisher
8Hole
NatcoDP
Work Bench
Profilometer
Rack
Rack Rack
FoamDies
Storage Rack for Foam
Tubes
WaterLeak
Tester
Work
Bench
Foamer
Foamer
Foamer
SS
Freezer
Cart
Freezer Rack
Boxes For
Shipping
Packaging Supplies
Packaging Supplies
Boxes For
Shipping
Foamer
Pump
Foamer
Foamer
SS
Freezer
Cart
FreezerRack
FreezerRack
Cleaning
Station
WorkBench
Raw Saw
Cut Tubes
Raw SS
DrillingStation
Work
Bench
ChipHopper
Electrical
ChipHopper
ElectricalTool
Chest
Work
Bench
Base
Flange
Superma
rket
Tubes TubesTubesTubes Tubes
Tube
Superma
rket
Coil
Base
Flange
Superma
rket
Raw SS
Conveyor
Tig
Station
Tig
Welder
Elec
Panel
Rinses
Welding
Fixtures Tool
Chest
Solder
Mounts
Long
Coils
Cart
Cabinet
FreezerRack
FreezerRack
FreezerRack
FreezerRack
Tubes
SS
Freezer
Cart
SS
Freezer
Cart
SS
Freezer
Cart
Freezer
Table
SS
Freez
er
Cart
SS
Freezer
Cart
WorkBenchElec
Panel
Solder Tank
Fan
Solder
Station Inline
Fluxer
Torch
Tanks
Table
Drai
n
Grat
e
Current Layout
WasherConveyor
Cone
yor
Resistance Solder
Water
Heater
Old Relic Work
Bench
Washer
Inspection
Table
In Feed Table
Water
Pump
Water Main
Post
Power
Brake Pad
Assembly
OEC
CureOven
OEC
Copper Tube Rack
StraightenerCopper Coil
Unload Table
Coil
Super
Marke
t
Coil
Super
Marke
t
Long
Coils
Short
Coils
Short
Coils
Electrical
Panel
Tank
Heated
Rinse
Tank
Rinse
VentingandPlumbingfortanks
Tank
Rinse
Tank
Rinse
Tank
Soap
Tank
Prepare
ElecPanel
Fixtures
Small
Parts
Tank
with
Vent &
Heat
TankTankTank
Cart
Cart
SolderStation
Gas Tanks
Test
Tank
Nitro
Tank
Drain
Washer
FluidCabinet Cabinet
ChipHopper
Electrical
Burnisher
Serrater
Tap DPSpout DP
Count
erSink
Debur
StationCounter
SinkDP
Burnisher
8Hole
NatcoDP
Work Bench
Profilometer
Rack
Rack Rack
FoamDies
Storage Rack for Foam
Tubes
WaterLeak
Tester
Work
Bench
Foamer
Foamer
Foamer
SS
Freezer
Cart
Freezer Rack
Boxes For
Shipping
Packaging Supplies
Packaging Supplies
Boxes For
Shipping
Foamer
Pump
Foamer
Foamer
SS
Freezer
Cart
FreezerRack
FreezerRack
Cleaning
Station
WorkBench
Raw Saw
Cut Tubes
Raw SS
DrillingStation
Work
Bench
ChipHopper
Electrical
ChipHopper
ElectricalTool
Chest
Work
Bench
Base
Flange
Superma
rket
Tubes TubesTubesTubes Tubes
Tube
Superma
rket
Coil
Base
Flange
Superma
rket
Raw SS
Conveyor
Tig
Station
Tig
Welder
Elec
Panel
Rinses
Welding
Fixtures Tool
Chest
Solder
Mounts
Long
Coils
Cart
Cabinet
FreezerRack
FreezerRack
FreezerRack
FreezerRack
Tubes
SS
Freezer
Cart
SS
Freezer
Cart
SS
Freezer
Cart
Freezer
Table
SS
Freezer
Cart
SS
Freezer
Cart
WorkBenchElec
Panel
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
RawSS
Drilling Station
Work
Bench
Electrical
Panel
Tank
Heated
Rinse
Tank
Rinse
VentingandPlumbingfortanks
Tank
Rinse
Tank
Rinse
Tank
Soap
Tank
Prepare
ElecPanel
Fixtures
Small
Parts
Tank
with
Vent &
Heat
TankTankTank
Cart
Cart
SolderStation
Gas Tanks
Test
Tank
Nitro
Tank
Drain
WorkBenchElec
Panel
Solder Tank
Rack
Rack
Rack
Packaging Supplies
Packaging Supplies
Pump
ChipHopper
Electrical
Short
Coils
ChipHopper
Electrical
ChipHopper
Electrical
Rinses
Welding
Fixtures
Cabinet Cabinet
Cabinet
Tool
Chest
Tool
Chest
Solder
Mounts
Walkway
Rinser
Work
Bench
Conveyor
Move
able
Table
Cabinet
Conveyor
Foam Dies
Storage Rack for Foam
Tubes
Water Leak
Tester
Work Bench
Foamer Foamer
Foamer
FreezerRack
Boxes For
Shipping
Boxes For
Shipping
FoamerFoamer
CabinetTool
Chest
CabinetTool
Chest
Solder
Station
Inline
Fluxer
Torch
Tanks
U-ShapedWasher
Copper Tube
Rack
Straightener CopperCoil
UnloadTable
Coil
Coil
Twoway-Conveyor
Tig
Station
Tig
Welder
Elec
Panel
Cleaning
Station
WorkBench
Raw Saw
Cut Tubes
Raw SS
Proposed Scotsman Layout
Burnisher
Serrater
Tap DPSpout DP
Count
erSink
Debur
Station
Counter
SinkDP
Burnisher
8Hole
NatcoDP
Work Bench
Profilometer
Washer
Conveyor
Conveyor
Grat
e
Double Conveyor with Bases and
Flanges
Coils
Tubes
Flanges+
Bases
Spaghetti Diagrams
Current 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
System
0 260 $7,100 $5,000 8.5 months Proposed
Implement Standard
Work
0 420 $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?

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Lou-Rich final presentation

  • 1. Improving Process Efficiency Lou-Rich, Inc. Carter Tollefson Advisor: Jon Vanyo Company Supervisor: Lee Gulbrandson
  • 2. 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
  • 4. Process Description • 5 different freezers made – all follow similar processes • Components (coils, flanges, and tubes) made
  • 5. Process Continued • Washed • Welding tube and flange
  • 6. Process Continued • Soldering coil to tube • *Base and inlet welding
  • 7. Process Continued • Machining Processes • Foaming
  • 8. Incentives to Change • Commitment to process improvement • Investigate process efficiency opportunities • Source reduction opportunities in washing system
  • 9. 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
  • 10. 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
  • 11. Determining Solutions • Timed processes • Value-stream maps • Spaghetti diagrams • Consulting with companies • Reviewed observations and notes • Meetings with staff and operators
  • 12. 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
  • 13. Washer Location WasherConveyor Cone yor Unload Bay HOOKCOVERAGEONHOIST OECCart Scale HOOKCOVERAGEONHOIST RackRack Load Bay OECCart OECCart OECCart OECCart Cardboard Rack PackOutTable BubbleFoam Hooks Hooks Incoming Lane OKtoShip 16 Supply Cabinet WASHER Resistance Solder Water Heater Old Relic Work Bench Washer Inspection Table In Feed Table Water Pump Water Main Post Power Brake Pad Assembly OEC CureOven OEC Copper Tube Rack StraightenerCopper Coil Unload Table Coil Super Marke t Coil Super Marke t Long Coils Short Coils Short Coils Electrical Panel Tank Heated Rinse Tank Rinse VentingandPlumbingfortanks Tank Rinse Tank Rinse Tank Soap Tank Prepare ElecPanel Fixtures Small Parts Tank with Vent & Heat TankTankTank Cart Cart SolderStation Gas Tanks Test Tank Nitro Tank Drain Washer FluidCabinet Cabinet ChipHopper Electrical Burnish er Serrate r Tap DPSpout DP Count erSink Deb ur Statio nCou nterSinkDP Burnisher 8Hole NatcoDP Work Bench Profilometer Rack Rack Rack FoamDies Storage Rack for Foam Tubes WaterLeak Tester Work Bench Foamer Foamer Foamer SS Freezer Cart Freezer Rack Boxes For Shipping Packaging Supplies Packaging Supplies Boxes For Shipping Foamer Pump Foamer Foamer SS Freezer Cart FreezerRack FreezerRack Cleaning Station WorkBench Raw Saw Cut Tubes Raw SS DrillingStation Work Bench ChipHopper Electrical ChipHopper ElectricalTool Chest Work Bench Base Flange Superma rket Tubes TubesTubesTubes Tubes Tube Superma rket Coil Base Flange Superma rket Raw SS Conveyor Tig Station Tig Welder Elec Panel Rinses Welding Fixtures Tool Chest Solder Mounts Long Coils Cart Cabinet FreezerRack FreezerRack FreezerRack FreezerRack Tubes SS Freezer Cart SS Freezer Cart SS Freezer Cart Freezer Table SS Freez er Cart SS Freezer Cart WorkBenchElec Panel Solder Tank Fan Solder Station Inline Fluxer Torch Tanks Table Drai n Grat e
  • 14. Current Layout WasherConveyor Cone yor Resistance Solder Water Heater Old Relic Work Bench Washer Inspection Table In Feed Table Water Pump Water Main Post Power Brake Pad Assembly OEC CureOven OEC Copper Tube Rack StraightenerCopper Coil Unload Table Coil Super Marke t Coil Super Marke t Long Coils Short Coils Short Coils Electrical Panel Tank Heated Rinse Tank Rinse VentingandPlumbingfortanks Tank Rinse Tank Rinse Tank Soap Tank Prepare ElecPanel Fixtures Small Parts Tank with Vent & Heat TankTankTank Cart Cart SolderStation Gas Tanks Test Tank Nitro Tank Drain Washer FluidCabinet Cabinet ChipHopper Electrical Burnisher Serrater Tap DPSpout DP Count erSink Debur StationCounter SinkDP Burnisher 8Hole NatcoDP Work Bench Profilometer Rack Rack Rack FoamDies Storage Rack for Foam Tubes WaterLeak Tester Work Bench Foamer Foamer Foamer SS Freezer Cart Freezer Rack Boxes For Shipping Packaging Supplies Packaging Supplies Boxes For Shipping Foamer Pump Foamer Foamer SS Freezer Cart FreezerRack FreezerRack Cleaning Station WorkBench Raw Saw Cut Tubes Raw SS DrillingStation Work Bench ChipHopper Electrical ChipHopper ElectricalTool Chest Work Bench Base Flange Superma rket Tubes TubesTubesTubes Tubes Tube Superma rket Coil Base Flange Superma rket Raw SS Conveyor Tig Station Tig Welder Elec Panel Rinses Welding Fixtures Tool Chest Solder Mounts Long Coils Cart Cabinet FreezerRack FreezerRack FreezerRack FreezerRack Tubes SS Freezer Cart SS Freezer Cart SS Freezer Cart Freezer Table SS Freezer Cart SS Freezer Cart WorkBenchElec Panel Solder Tank Fan Solder Station Inline Fluxer Torch Tanks Table Drai n Grat e
  • 15. Proposed Layout Foamer Raw Saw Cut Tubes Water Heater Inspection Table In Feed Table Water Pump Water Main Post Power RawSS Drilling Station Work Bench Electrical Panel Tank Heated Rinse Tank Rinse VentingandPlumbingfortanks Tank Rinse Tank Rinse Tank Soap Tank Prepare ElecPanel Fixtures Small Parts Tank with Vent & Heat TankTankTank Cart Cart SolderStation Gas Tanks Test Tank Nitro Tank Drain WorkBenchElec Panel Solder Tank Rack Rack Rack Packaging Supplies Packaging Supplies Pump ChipHopper Electrical Short Coils ChipHopper Electrical ChipHopper Electrical Rinses Welding Fixtures Cabinet Cabinet Cabinet Tool Chest Tool Chest Solder Mounts Walkway Rinser Work Bench Conveyor Move able Table Cabinet Conveyor Foam Dies Storage Rack for Foam Tubes Water Leak Tester Work Bench Foamer Foamer Foamer FreezerRack Boxes For Shipping Boxes For Shipping FoamerFoamer CabinetTool Chest CabinetTool Chest Solder Station Inline Fluxer Torch Tanks U-ShapedWasher Copper Tube Rack Straightener CopperCoil UnloadTable Coil Coil Twoway-Conveyor Tig Station Tig Welder Elec Panel Cleaning Station WorkBench Raw Saw Cut Tubes Raw SS Proposed Scotsman Layout Burnisher Serrater Tap DPSpout DP Count erSink Debur Station Counter SinkDP Burnisher 8Hole NatcoDP Work Bench Profilometer Washer Conveyor Conveyor Grat e Double Conveyor with Bases and Flanges Coils Tubes Flanges+ Bases
  • 17. 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
  • 18. 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
  • 19. 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
  • 20. 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
  • 21. 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  $1,400/year
  • 22. Recommended Changes Recommendation Water (gpy) Operators (hrs/year) Net savings ($/year) Implementation cost Payback period Status Layout and Conveyor System 0 260 $7,100 $5,000 8.5 months Proposed Implement Standard Work 0 420 $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
  • 23. 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
  • 24. 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