STEEL EFFICIENCY REVIEW SUCCESS STORIES
FLEXIBILITY, SERVICE AND QUALITY BSD0016 08/08
Telephone (03) 9293 5177 Facsimile (03) 9293 5180
WHY UNDERTAKE A STEEL EFFICIENCY REVIEW? HERE ARE SEVEN IRON-CLAD REASONS Our Steel Efficiency Review has identified major savings for many steel processing companies across Australia. Here are some of those success stories. Over production: 32% of clients have opportunities to make savings in waste.
additional rent costs of $85k per annum. Recommendation from SER:Impact Steel recommended a ‘Just In Time’ material supply directly to the line. This significantly reduced the Work-InProgress for the client. Result: Greater production runs coupled with less
“32% of clients have opportunities to make savings in waste...”
Time in waiting: 15% of clients have seen opportunities to improve their workflow, working capital and decrease their exposure to safety warehouse space – no need for the additional storage. issues.
A real saving of $85k per annum for the client. And Transportation: 24% of clients have opportunities for Impact Steel additional volume has been captured to improve productivity and reduce freight costs. with this value added service offer.
Processing: 18% of clients have opportunities to reduce excess waste amounting to greater production runs and savings in material cost. Inventory: 36% of clients have opportunities to reduce delays and excess stock stored to remove the time wasted managing inventory. Motion: 22% of clients have opportunities to reduce motion problems and safety risk.
2. TIME IN WAITING PROBLEMS Date: 19 September 2010. The client: A Manufacturer of Sheetmetal Components - Melbourne, Victoria. The problem: The client’s Robotic in-feed machine couldn’t register the product correctly and would stop overnight. This problem would occur randomly (3 to 4 times per month).
Rework: 28% of clients have opportunities to reduce the number of rework resulting in significant savings in material cost.
Recommendation from SER: Impact Steel assisted the client with developing a product quality process that allowed for a “booked end” finish. The in-feed machine now always has the same point of reference.
1. OVER PRODUCTION
Result: For the client – the Robotic in-feed machine has now been running consistently for the past 2 months without stopping. This has provided greater production runs and no waste for the client. For Impact Steel this has provided increased volume and assurance of supply.
Date: 9 November 2010. The client: A Leading National Manufacturer. The problem: Growing stock requirements leading to an increase in warehouse space. Client has incurred
3. TRANSPORTATION ISSUES Date: 15 September 2010.
5. INVENTORY ISSUES
Date: 28 October The client: General Engineering Company in Melbourne, 2010. Victoria. The client: A Metal The problem: The Client didn’t keep track of the stock Manufacturing Business – they received from their suppliers. This in turn delayed Melbourne, Victoria. their deliveries to Impact Steel for processing work The problem: Limited Warehouse resulting in longer lead times. Space. Recommendation from SER: Impact Steel Recommendation from SER: Impact Steel offered to recommended the client’s stock to be sent directly support the client in implementing a “Kanban” process from their suppliers to Impact Steel for processing. for lean manufacturing. Impact also offered to provide the client a monthly Result: This allowed the client to free up space report of stock received and stock processed. and establish an automated in-feed machine which Result: For the client this has resulted in increased increased productivity by 19%. efficiency and turnaround times. The client can now accurately trace and manage their stock effectively. 6. MOTION PROBLEMS This has improved their lead times to their customers Date: 16th September 2010 by 20% and provided Impact Steel with additional The client: Air Conditioning Duct Manufacturer, volumes for processing. Melbourne Victoria.
4. PROCESSING WASTE Date: 4 October 2010.
The problem: Forklift Movements (Safety & Cost Issue) & Material Handling Costs.
The Client: A General Engineering Workshop – Melbourne, Victoria.
Recommendation from SER: Impact Steel proposed two tonne material supply packs for convenience.
The problem: The Client produced excess scrap waste for all sheet steel products.
Result: Forklift movements & Material Handling movements decreased by 46%, resulting in safer moves and more an overall more effective manufacturing operation.
“36% of clients have opportunities to reduce delays and excess stock stored to remove the time wasted in managing inventory...”
7. REWORK COSTING YOU? ?
Recommendation from SER:Impact Steel recommended an opportunity to work with the client to re-program their needs into a new steel sheet size. Result: The new sheet size has resulted in greater production runs and reduced waste by 27%..
Date: 4th August 2010. The client: Sheet Metal Manufacturer, Melbourne Victoria. The problem: Product quality and number of reworks was too high and costing client money. Recommendation from SER: Impact Steel formulated a product quality plan supported with monthly quality supply meetings to help monitor and fix rework numbers. Result: For the client this reduced the amount of downtime due to quality issues by 14%. All issues are now visible and addressed within 48 hours.
WATCH YOUR BUSINESS BENEf IT f ROM OUR S TEEL Eff ICIENCY REVIEW
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