Capstone Project Final Presentation May 16, 2002 Dr. Thomas Robinson CMfgE
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Capstone Project Capstone Project Final Presentation Final Presentation May 16, 2002 May 16, 2002 Dr. Thomas Robinson CMfgE Dr. Thomas Robinson CMfgE
description
Capstone Project Final Presentation May 16, 2002 Dr. Thomas Robinson CMfgE. Agenda. Product Review Goal Review Design Review Manufacturing Quality Finance. TL. Product Review. HITCH MOUNTING RACK WITH FLEXIBLE ACCESSORIES THAT FIT THE ACTIVE LIFESTYLE. TL. - PowerPoint PPT Presentation
Transcript of Capstone Project Final Presentation May 16, 2002 Dr. Thomas Robinson CMfgE
Capstone ProjectCapstone Project
Final PresentationFinal Presentation
May 16, 2002May 16, 2002
Dr. Thomas Robinson CMfgEDr. Thomas Robinson CMfgE
Agenda
Product ReviewProduct Review
Goal ReviewGoal Review
Design ReviewDesign Review
ManufacturingManufacturing
QualityQuality
FinanceFinance
TL
Product Review
HITCH MOUNTING RACK WITH FLEXIBLE HITCH MOUNTING RACK WITH FLEXIBLE ACCESSORIES THAT FIT THE ACTIVE ACCESSORIES THAT FIT THE ACTIVE
LIFESTYLE.LIFESTYLE.
TL
Bao Doan - Quality Engineer
James Rice - Research and Development Specialist
Jim Lambert - Marketing
Lindsey Erickson - Design Engineer
Ramon Tejada - Controller
Randy Renwand - Director of Operations
Tim Legris - Project Manager
TL
Company Goals
Determine manufacturing capability Determine manufacturing capability
by July 31st 2002by July 31st 2002
Verify design through market surveys Verify design through market surveys
Proof and Pilot run verification Proof and Pilot run verification
Prepare for rollout utilizing yield management Prepare for rollout utilizing yield management
TL
Company Goals Continued
Determine ideal FleXhitch retailer and stock 20 stores with 5 Determine ideal FleXhitch retailer and stock 20 stores with 5 units each units each
Product for sale in stores by November 1st 2002Product for sale in stores by November 1st 2002
Implement KANBAN manufacturing processImplement KANBAN manufacturing process
Develop Marketing strategy to enter the new vehicle marketDevelop Marketing strategy to enter the new vehicle market
Capture 50% of Southern California market by December 2003Capture 50% of Southern California market by December 2003
Perform Market Analysis and improve sales approach to meet Perform Market Analysis and improve sales approach to meet goalsgoals
Implement a Focus Team to reduce production costs by 30% Implement a Focus Team to reduce production costs by 30% and increase yield by 40% and increase yield by 40% TL
Company Goals Continued
Be a nationwide producer of hitch accessories by Be a nationwide producer of hitch accessories by January 1st, 2006January 1st, 2006
Consistently high quality to promote brand recognition Consistently high quality to promote brand recognition
Product available as an option on new vehicles worldwideProduct available as an option on new vehicles worldwide
Provide Distributor FranchisesProvide Distributor Franchises
TL
TIMELINETIMELINE
TL
TASKS 1/31 2/7 2/14 2/21 2/28 3/7 3/14 3/21 3/28 4/4 4/11 4/18 4/25 5/2 5/9 5/16
1st Progress ReportDevelop Prototypes2nd Progress Report3rd & Final Progress ReportFinal Written Report
Action/DevelopmentCompletion DateGoals Met 100%
Product Plan - One Year Projection
Universal Hitch
Motorcycle Rack
Storage Rack with removable rail
Gas Can Rack
Tail Light Kit
LE
Product Plan - Five Year Projection
Golf Bag Rack
Lockable Tool box
Lumber Rack
Winch Rack
Barbecue Rack
LE
External Manufacturing Benchmarking
RR
Select process Select process
All Processes for most common productAll Processes for most common product
Identify leaders for each processIdentify leaders for each process
Smaller Company = Smaller Company = SPORTSRACKSPORTSRACK
Collect DataCollect Data
Margin = 50%, Productivity = 80%, Efficiency Margin = 50%, Productivity = 80%, Efficiency = 90%= 90%
Analyze DataAnalyze Data
Process vs. ProcessProcess vs. Process
Plant Projection - 1 Year
Manufacturing Systems Manufacturing Systems
‘‘Little’ JIT - Schedule inventory, Ensure Little’ JIT - Schedule inventory, Ensure resources, followed by Kanban resources, followed by Kanban
MechanizationMechanization
CAD & CAM, Combine some operationsCAD & CAM, Combine some operations
Human ResourcesHuman Resources
Five flexible operatorsFive flexible operators
FacilityFacility
50,000 sq.ft. 2/3 manufacturing. 1/3 warehouse50,000 sq.ft. 2/3 manufacturing. 1/3 warehouse
RR
Plant Projection - 3 Year
Manufacturing Systems Manufacturing Systems
MRP beginsMRP begins
MechanizationMechanization
CIM - network computers and machinesCIM - network computers and machines
Human ResourcesHuman Resources
Two Leads, Five flexible operatorsTwo Leads, Five flexible operators
FacilityFacility
50,000 sq.ft. 2/3 manufacturing. 1/3 warehouse50,000 sq.ft. 2/3 manufacturing. 1/3 warehouse
RR
Plant Projection - 5 Year
Manufacturing Systems Manufacturing Systems
‘‘Big’ JIT - Big’ JIT - Eliminate all waste, MRPIIEliminate all waste, MRPII
MechanizationMechanization
Some automatic loading and unloadingSome automatic loading and unloading
Human ResourcesHuman Resources
One supervisor, Three Leads, Seven flexible One supervisor, Three Leads, Seven flexible operators operators
FacilityFacility
50,000 sq.ft. 3/4 manufacturing. 1/4 warehouse50,000 sq.ft. 3/4 manufacturing. 1/4 warehouse
RR
Router (Document #ROU001) for Universal Hitch FH-UHI-001
Supply Chain
RR
Steel MillSteel Mill Steel VendorSteel Vendor
FlexhitchFlexhitchCoatingCoating
RetailerRetailer CustomerCustomer
DecisionDecision
OperationOperation
StorageStorage
TransitTransit
Supply Chain Continued
Computerized order trackingComputerized order tracking
Minimize ‘Bull-whip’ EffectMinimize ‘Bull-whip’ Effect
Innovative Flexhitch productsInnovative Flexhitch products
Higher Margins = Higher InstabilityHigher Margins = Higher Instability
Match a Responsive Supply ChainMatch a Responsive Supply Chain
Mis-match an Efficient Supply ChainMis-match an Efficient Supply Chain
OutsourcingOutsourcing
Material forming and cuttingMaterial forming and cutting
Coating and PlatingCoating and PlatingRR
Flexible Plant Layout with Flowchart
WAREHOUSE WAREHOUSE INCOMING MATERIALINCOMING MATERIAL
CELL 1CELL 1
SHIPPING DOCKSHIPPING DOCK
OOFFFFIICCEESS
CELL 2CELL 2
CELL 3CELL 3
CELL 4CELL 4
CELL 5CELL 5
RECEIVING DOCKRECEIVING DOCK
WAREHOUSE WAREHOUSE FINISHED GOODSFINISHED GOODS
QUALITY ASSURANCE BASEQUALITY ASSURANCE BASE
001001
002002003003
004004
008008
006006007007 009009 00100010
005005
Quality Goals
Manufacture a high quality product
Less than 1% customer returns in the first year
Train employees to follow instructions & procedures
Establish a Continuous Improvement team
In process inspections
Achieve ISO 9001 certification by April 31st, 2003
ISO Oversight Committee
Implement Good Manufacturing Practices (GMP)
Internal auditingBD
Managers ofmajor functions
GENERAL MANAGER
QUALITY MANAGER
MANUFACTURE MANAGER
MAKETING MANAGER
QUALITY CONTROL
RELIABILITY ENGINEERING
QUALITY ASSURANCE
INSPECTIONQA LAB
Quality Organization
Organization Structure
Quality ManualPurpose
Describe the policies & control structure of the Quality Management System used to achieve the mission at Flexhitch.
Content
Documents Flexhitch Processes
Includes 20 sub-sections
Follows ISO 9001 guidelines
Continuous Improvement
Work instructions and methods
Application to Flexhitch
Specific work procedures and instructionsBD
Work Procedures
In process inspections at workstations
Developed for Flexhitch Surface Coating Finish
Dimensional
Hole alignment
Surface finish
Joints
Strength
Additional procedures for each new product
BD
Quality Procedure for Surface Finish
Color Test
Alternate Color Test Method
Adhesion
General Appearance
Solvent Resistance
BD
Develop work procedures and checklists for each critical manufacturing process
Continue to develop and modify working documents to achieve ISO certification
Oversight Committee ensures focus on the continuous quality improvement process
Future Quality Efforts
BD
Promotional Objectives & Strategies
1. Greatest Challenge 1st Year: Lack of Market Awareness
2. Strategies for Enhancing Market Awareness
A. Sales display at place of business
B. Company website (on-line & B-to-B sales)
C. Employees promotion
D. Car & Truck Dealership
E. Print Advertising
F. Local Cable outlets
RT
Cash Flow Analysis – 1st Year
1. Total Operating Costs (rounded) $ 1,215,000
2. Financing A. Cost of borrowing 1.215M @ 8.1% $ 98,415
Total Costs of Operations $ 1,313,000
3. Operating Costs per Day (261 operating days)
A. $ 1.313 million / 261 = $ 5,032
Average Capital Recovery ($5, 032 / 48 units = ) $ 105 Cost Per Item
RT
Rate of Return – 1st Year
Average Capital Recovery Cost per Item $ 105.00
Average Capital Recovery Cost per Item+ 18% Internal Rate of Return $ 123.00
RT
Projected Productivity Schedule
Year PPDay x DPM = PPMonth = Accum. % Increase
1 48 22 960 = N/A
2 62 22 1, 344 = 28.5
3 110 22 2, 419 = 44
5 219 22 4, 838 = 50
RT
Cash Flow Analysis – 2nd Year
1. Total Operating Costs (rounded) $ 1,000,000
2. Financing A. Cost of borrowing 1.215M @ 8.1% $ 81,000
Total Costs of Operations $ 1,081,000
3. Operating Costs per Day (261 operating days)
A. $ 1.081 million / 261 = $ 4,141
Average Capital Recovery ($4, 141 / 62 units = ) $ 67 Cost Per Item
RT
Rate of Return – 2nd Year
Average Capital Recovery Cost per Item $ 67.00
Average Capital Recovery Cost per Item+ 18% Internal Rate of Return $ 79.00
Internal Rate of Return if Prices are Unchanged $ 123.00
RT
Cash Flow Analysis – 5th Year
1. Total Operating Costs (rounded) $ 1,000,000
2. Financing A. Cost of borrowing 1.215M @ 8.1% $ 81,000
Total Costs of Operations $ 1,081,000
3. Operating Costs per Day (261 operating days)
A. $ 1.081 million / 261 = $ 4,141
Average Capital Recovery ($4, 141 / 219 units = ) $ 18 Cost Per Item
RT
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Long Beach, CA 90000Phone: (562) 985 - FLEX
Fax: (562) 985 - 0000
