design and operational performance

AVANT MANUFACTURING CONSULTANTS

Introduction:

Avant Manufacturing Consultants (AMC) provides engineering services to support the design and operational performance of manufacturing companies. AMC has been in business since 1988 when two university faculty members decided to expand their individual consulting activities into a high tech consulting company. AMC provides clients with expertise based on the newest developments in manufacturing research and has a reputation for putting their clients’ interests first. The current CEO, Phil Follower, is a former PhD student of the founders and is determined to maintain the company’s vision of being able to deliver turnkey state-of-the-art solutions to manufacturing system design problems. The company’s success stems from its proven ability to apply scientific principles to develop efficient system designs and operating procedures along with the training necessary to implement and enable the client to successfully operate those solutions.

AMC’s reputation for being able to quickly provide sound solutions to messy problems has resulted in long term relationships with several large Fortune 500 companies and a consistent stream of facility design and operational improvement projects from medium size firms. AMC is widely recognized as a leader in consulting services for the manufacturing industry. Its principals are frequently invited to speak at major industry conferences. AMC employs 34 individuals of whom 17 are industrial, manufacturing, mechanical or electrical engineers. Most of the engineers have graduate degrees. Another 6 employees are software developers that have been trained by major MES and ERP providers to deploy their software and customize the installation to meet clients’ needs across several manufacturing and service industries. The other employees include a CFO, CTO and administrative staff. The two founders now serve as Emeritus members of the Board of Directors and each owns 25% of the company. However AMC is now run by the CEO who operates as the head of the executive team comprised of the CEO, CFO, CTO and a Director of Business Development.

AMC has recently been hired by WayFor Manufacturing Company (WFMC) to help them prepare for growth and improved efficiency. WFMC produces a variety of semi-manual and automated measurement and testing equipment. Most of the products are used in high-volume electronics manufacturing but they also service other high tech industries. Indeed, one of the new products, and a potential growth market identified by the Business Development group, is used in pharmaceutical manufacturing. WFMC is a family run manufacturer that grew steadily from its founding in 1972 through 2007 but then was hit by the economic downturn. Annual sales dropped from $53.3 million per year to $39.2 million and WFMC was forced to layoff one fourth of their workforce. They even sold some equipment to stay afloat. But during the downturn they used the time to design and develop a new product line and update the functionality and design of several key products. In addition to the industrial market, new products will include low-cost equipment options for the individual entrepreneur and residential markets. Now with the economy having recovered and orders growing rapidly, WFMC is planning how to expand operations.

Facilities

WFMC operates a 180,000 sq ft. manufacturing facility and an adjacent 40,000 sq. ft. warehouse. The warehouse is used for receiving, shipping and storage of raw materials, finished products, and a few key spare parts. It is also here that kits are created for each of the products to be produced. A kit contains all the materials and any specialty instructions needed to produce an order for a product. Kits are then transferred to the main building for the production process. Movement of product between the facilities is done primarily by tow trucks carrying multiple trailers with kitted bins. Both buildings are similar architecturally but their current use has evolved over time. The manufacturing system has been structured according to a traditional process layout to take advantage of their high worker skill level. New equipment will be needed and the company is considering acquiring more flexible machining centers that can each replace several of their current processors.

Manufacturing Process Description:

The majority of WFMC’s business comes from 42 products across three product families. The units are sold in bulk orders to major equipment suppliers as well as being sold directly from their on-line catalog. Some orders are for specially designed products but most sales are from the standard product line. The base selling price of items varies from $80 to $500 per unit. The size of the markets for the newer residential and small company $40-$80 items are uncertain but the company believes this will offer significant growth opportunity.

Setup of a product family (conversion from one family to another) requires about two hours of labor on a machine. Once the product family is setup, conversion from one item within a family to another only takes about five minutes on average. Within families, individual products vary by dimension (size), number of special features, and tolerances (these may impact which types of processors and specific models of those processors are required as additional finishing operations may be required). All products are loaded in individual fixtures. Parts are placed in a 24” x 14” tote bin and manually pushed on a cart between operations. Bins may hold multiple parts and a cart can hold up to six bins. While some parts require as many as 40 operations before going to final assembly, there are only17 different processor types that require significant capital investment. Other operations are primarily bench top manual operations or use small and inexpensive machines. All parts are loaded and unloaded by hand at each operation. Loading and unloading tasks typically take 20 to 30 seconds. Some machines require a full time attendant while running. Others just require partial oversight during operation between the manual loading and unloading of a part. Data on the products and key processor types are provided in Tables 1, 2 and 3. Except where indicated in Table 2 units are processed individually at each stage. Following the last operation in the process plan, product kits containing all completed parts and subassemblies are sent to a final assembly and inspection area. Assembling and inspecting a kit takes about 12 minutes per product. This is a manual process done at a workbench. The assemblers are responsible for performing a basic visual inspection of the completed product and a quick performance check. Any assembler can assemble any kit, but experience indicates that quality and productivity is higher if assemblers specialize in one product family.

WFMC has tried to protect its most talented workers through the recession. Many of the current workers have been with the company over 15 years and possess a variety of skills and knowledge about the various processors and WFMC’s products. Most current machine operators and setup technicians fall into the same labor class and are paid an average of $50/hour including benefits. New workers start at $28/hour and receive raises as they acquire more skills and proficiency at those tasks. The practice has also been to have a lead machinist who can serve as a foreman for about every ten workers. These leads earn an average of $60/hour. Overtime beyond 80 hours in any two week period is paid at a 40% premium.

To ensure quality, WFMC uses a combination of statistical process control and traditional sampling. For product-processor combinations that are performing well, occasional samples are taken twice a day to confirm the process is in control. For some difficult-to-manufacture products that have strict tolerances and performance requirements higher frequency sampling is used. In fact, for the “tricky” products, numbers 18, 24 and 30, 100% sampling is used for operations a and c and 30% sampling for its other operations. This quality testing has traditionally meant taking the parts to the quality inspection lab between operations. The inspection tasks do require manual actions by technicians but only basic benches and inexpensive gauges/instrumentation are required.

The new low end products to initially be released are cheaper and smaller versions of products 1, 2 and 6 from family A and 30 and 31 from family C. Processing times will be similar to the associated existing products accept new tooling will be required for the machines and additional final inspection will be necessary until the processes stabilize.

Case Assignment:

AMC recently completed a one year study of WFMC recommending several process improvements including consideration of switching to the use of manufacturing cells for several families of similar products. WFMC has now contracted with AMC to take the next step and develop a detailed plan for the conversion. You have been assigned to work with WayFor Corporation to design their production process. You must select the appropriate number of processors of each type, construct a desired facility layout and propose appropriate order release and routing procedures. Of course you will want to ensure your design is efficient by performing the appropriate quantitative analysis and comparing it against one or more alternative designs. WFMC wants to ensure that the final design will sustain their growth over the next few years, allow them to reduce throughput times and inventory investment and ensure profitability.

Your report should be written to Bud Abbott, the V.P. of Manufacturing for WFMC. You should begin with a one page Executive Summary that states the problem scope including objectives, solution approach, conclusions and any key assumptions that may impact the validity of your results. The summary should be sufficient to understand your problem scope and solution. The summary should be followed with a Discussion section that provides a detailed description of your assumptions, proposed solutions considered, analysis of those solutions and recommendation. A discussion of risks and benefits of the recommendation as well as any operating procedures to be used should be included. This section should be written in an expository style. An Appendix should include all the calculations that support your conclusions, any necessary technical explanation and justification of the models you developed and the detailed data of your analysis. NOTE: Any item included in the Appendix must be referenced in the Discussion section.

Here are some requirements for the submission:

Case solutions are due by 5pm April 30th, 2020.

This is a group work. One group can only submit one copy. Multiple submissions will lead to a 5 points loss.

Multiple attempts of submission by the same person are allowed. Only the latest submission will be graded.

Submission link will be accessible in the week that is due and disappear after the due time. Please arrange your time wisely.

Email submission will not be accepted. Latter submission will also not be accepted.

Only pdf/docx format will be accepted. The project report should be one pdf/ms-word file. If you have multiple separated pages, please combine them together.

Quality Testing

Offices

350’

Main Exit

Manufacturing

500’

Final Assembly

Figure 1. Schematic of main building

Table 1. Product Demand

Product No.

Family

Units per Tote Bin

2015 Demand

2016 Demand

2017 Forecast

1

A

4

3447

2014

4164

2

A

4

9716

8797

14675

3

A

4

1335

1260

1773

4

A

4

7237

8651

6530

5

A

4

12556

9393

14137

6

A

4

2271

5379

15717

7

A

4

11524

9454

12559

8

A

4

1836

1156

2176

9

A

4

12577

5169

16281

10

A

4

12238

13281

11716

11

A

2

5833

5674

5913

12

A

2

8249

3139

10805

13

A

2

9798

5312

12041

14

A

2

1523

1809

1380

15

A

2

10045

9262

10437

16

A

2

2841

1837

3342

17

A

2

5196

4904

5342

18

A

2

15920

18204

14778

19

A

2

7167

5266

8117

20

A

2

190

113

228

21

A

2

15247

15349

16197

22

B

1

1347

499

1772

23

B

1

1880

1348

2146

24

B

1

2938

898

3958

25

B

1

2148

820

2812

26

B

2

2234

814

2943

27

B

2

2312

1678

2629

28

B

2

1541

1286

1669

29

B

2

2469

2274

2567

30

C

6

1000

420

1291

31

C

6

8140

8461

7980

32

C

6

5405

4523

5846

33

C

6

6075

5967

6129

34

C

6

6070

3283

7463

35

C

6

6492

4506

7484

36

C

6

8925

8619

9078

37

C

6

9802

12281

8562

38

C

6

4555

3684

3990

39

C

6

1467

655

1874

40

C

6

5840

1988

7767

41

C

6

2508

3035

2245

42

C

6

6306

5771

6574

42B

C

6

1330

1614

1188

Table 2. Processor Characteristics

Processor Type

Annual Fixed Cost/Processor

Variable Cost/hour (excl. labor)

Footprint (Sq. Ft)

Operators Required while operating

Load/Unload time/chamber load (min)

Process chamber size*

Availability

A

$5,000

$3

100

0.2

0.5

1

0.80

B

$3,500

$12

100

0.2

0.5

1

0.95

C

$2,000

$3

150

0.5

0.5

1

0.95

D

$2,650

$12

200

0.2

0.5

1

0.70

E

$6,300

$5

150

0.2

0.5

1

0.95

F

$200

$2

60

1.0

0.5

1

0.95

G

$4,690

$12

250

0.5

0.5

1

0.95

I

$1,350

$2

60

1.0

0.5

1

0/90

J

$1,600

$2

60

1.0

0.5

1

0.80

K

$3,250

$12

100

1.0

0.5

1

0.95

L

$2,880

$12

80

0.2

0.5

1

0.95

M (oven)

$12,500

$3

150

0.5

0.5

10

0.95

N

$2,360

$5

80

0.2

0.5

1

0.90

O

$1,200

$3

60

0.2

0.5

1

0.95

P

$18,675

$18

200

0.5

0.5

1

0.95

Q (test)

$1,100

$5

80

0.5

0.5

4

0.70

R

$1,000

$5

80

1.0

0.5

1

0.95

* Process chamber size indicates number of units processed simultaneously

Table 3. Process Plan Data

 

Process Plan (Processor, Cycle Time (hours))

Product No.

Op #1

Op #2

Op#3

Op#4

Op#5

Op#6

1

A, 0.06

C,0.05

D, 0.18

K, 0.12

M, 2.0

Q ,0.10

2

A, 0.10

B, 0.05

E, 0.06

M, 1.0

Q, 0.05

 

3

F, 0.15

G, 0.20

M, 2.0

Q, 0.20

 

 

4

A, 0.06

C, 0.05

D, 0.08

K,0.12

M, 2.0

Q, 0.10

5

A, 0.10

B, 0.05

E, 0.06

M, 1.0

Q, 0.05

 

6

A, 0.05

C, 0.05

E, 0.10

L, 0.05

M, 2.0

R, 0.03

7

F, 0.15

G, 0.20

M, 2.0

Q, 0.20

 

 

8

A, 0.06

C,0.05

D, 0.08

K, 0.12

M, 2.0

Q ,0.10

9

A, 0.06

C,0.05

D, 0.15

K, 0.12

M, 2.0

Q ,0.10

10

A, 0.05

C, 0.05

E, 0.10

L, 0.05

M, 2.0

Q, 0.03

11

A, 0.10

B, 0.05

E, 0.06

M, 1.0

Q, 0.05

 

12

A, 0.10

B, 0.05

E, 0.06

M, 1.0

Q, 0.05

 

13

A, 0.06

C,0.05

D, 0.20

K, 0.12

M, 2.0

Q ,0.10

14

A, 0.05

C, 0.05

E, 0.10

L, 0.05

M, 2.0

Q, 0.03

15

A, 0.10

B, 0.05

E, 0.06

M, 1.0

Q, 0.05

 

16

B, 0.10

G, 0.25

I, 0.05

J, 0.06

M, 1.2

 

17

D, 0.05

E, 0.08

M, 2.0

P, 0.10

Q, 0.05

 

18

A, 0.06

C,0.05

D, 0.18

K, 0.12

M, 2.0

Q ,0.10

19

B, 0.10

G, 0.25

I, 0.05

J, 0.06

M, 1.2

 

20

D, 0.05

E, 0.08

M, 2.0

P, 0.10

 

 

21

F, 0.15

G, 0.20

P, 0.05

M, 2.0

Q, 0.10

 

22

A, 0.05

C, 0.05

E, 0.10

O, 0.05

M, 2.0

R, 0.03

23

A, 0.05

C, 0.05

E, 0.10

O, 0.05

M, 2.0

R, 0.03

24

A, 0.06

C,0.05

D, 0.15

K, 0.12

M, 2.0

Q ,0.10

25

A, 0.06

C,0.05

D, 0.15

K, 0.12

M, 2.0

Q ,0.10

26

D, 0.05

E, 0.08

M, 2.0

P, 0.10

R, 0.04

 

27

D, 0.05

E, 0.08

M, 2.0

P, 0.10

R, 0.04

 

28

A, 0.05

C, 0.05

E, 0.10

O, 0.05

M, 2.0

R, 0.03

29

D, 0.05

E, 0.08

M, 2.0

P, 0.10

R, 0.04

 

30

A, 0.06

C,0.05

D, 0.20

K, 0.12

M, 2.0

Q ,0.10

31

F, 0.15

G, 0.20

M, 2.0

Q, 0.20

 

 

32

D, 0.05

E, 0.08

M, 2.0

J, 0.10

R, 0.04

 

33

A, 0.06

C,0.05

D, 0.08

K, 0.12

M, 2.0

Q ,0.10

34

F, 0.15

G, 0.20

R,0.10

M, 2.0

Q, 0.15

 

35

F, 0.15

G, 0.20

M, 2.0

Q, 0.20

R, 0.30

 

36

A, 0.06

C,0.05

D, 0.20

K, 0.12

M, 2.0

Q ,0.10

37

A, 0.10

B, 0.05

E, 0.06

M, 1.0

Q, 0.05

 

38

A, 0.06

C,0.05

D, 0.20

K, 0.12

M, 2.0

Q ,0.10

39

D, 0.05

E, 0.08

M, 2.0

J, 0.10

R, 0.04

 

40

A, 0.10

B, 0.05

E, 0.06

M, 1.0

Q, 0.05

 

41

F, 0.15

G, 0.20

R, 0.10

M, 1.0

Q, 0.10

 

42

B, 0.10

G, 0.25

I, 0.05

J, 0.06

M, 1.2

 

42B

B, 0.10

G, 0.25

I, 0.05

J, 0.06

M, 1.2

Q, 0.05