Computer Residuals De-manufacturing Method and Its Economic Value.
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Transcript of Computer Residuals De-manufacturing Method and Its Economic Value.
Computer ResidualsComputer ResidualsDe-manufacturing De-manufacturing
Method and Its Economic ValueMethod and Its Economic Value
Dilbert Dilbert by Scott Adamsby Scott Adams
OutlineOutline
Problem StatementProblem Statement Current SolutionCurrent Solution Scope of ProjectScope of Project Operational AnalysisOperational Analysis Economic AnalysisEconomic Analysis RecommendationsRecommendations ConclusionConclusion
Problem StatementProblem Statement
Approximately 2000 computers per yearApproximately 2000 computers per year 50% refurbished and donated50% refurbished and donated 40% remanufactured and resold40% remanufactured and resold 10% residual10% residual
Problem:
What to do with the residuals?
Current SolutionCurrent Solution
Contracted to outside sourceContracted to outside source• Take Monitors and CPUTake Monitors and CPU• Storage requiredStorage required• Optimal truckload capacity Optimal truckload capacity • ““Out of sight, out of mind.”Out of sight, out of mind.”
Scope of ProjectScope of Project
Alternative SolutionAlternative Solution Establish a method of de-manufacturingEstablish a method of de-manufacturing
• consider CPU onlyconsider CPU only• environmental issues with monitorsenvironmental issues with monitors
Economic evaluation against current Economic evaluation against current solutionsolution target costingtarget costing break-even analysisbreak-even analysis comparing alternativescomparing alternatives
Operational AssumptionsOperational Assumptions
IBM family of CPUIBM family of CPU Optimal working Optimal working
environmentenvironment Tools allow for Tools allow for
easiest disassemblyeasiest disassembly
Establishing the Work StandardEstablishing the Work Standard
Predetermined motion time systemPredetermined motion time system Determines amount of time requiredDetermines amount of time required
MOST (Maynard Operation Sequence MOST (Maynard Operation Sequence Technique)Technique)
•planningplanning•performance ratingperformance rating•establishing costsestablishing costs
Basic MOST TechniqueBasic MOST Technique
General MoveGeneral Move (for movement of object through air) (for movement of object through air) Controlled MoveControlled Move (for the movement of object in (for the movement of object in
contact with surface or other object)contact with surface or other object) Tool UseTool Use (for use of hand tools) (for use of hand tools)
MOST WORK MEASUREMENT TECHNIQUEACTIVITY SEQUENCE MODEL SUB - ACTIVITIESGeneral A B G A B P A A - action distanceMove B - body motion
G - gain controlP - placement
Controlled A B G M X I A M - move controlledMove X - process time
I - alignmentTool Use A B G A B P A B P A F - fasten
L - loosenC - cutS - surface treatM - measureR - recordT - think
Application of MOSTApplication of MOST
Removing Fasteners or ScrewsRemoving Fasteners or Screws
LH: ALH: A1 1 BB0 0 GG33 A A1 1 BB00 P P11 A A11 RH: ARH: A11 B B0 0 GG11 A A1 1 BB00 (P (P33 A A0 0 LL1616) A) A11 B B00 P P11 A A00
Operations of DisassemblyOperations of Disassembly
Remove Metal Casing Remove Power & Data Cablesfrom Floppy Drive
Unfasten Floppy Drive Unfasten Supporting Bar
Operations of DisassemblyOperations of Disassembly
Remove Support &Floppy Drive
Remove Power & Data Cablesfrom Power Supply
Remove Mother Board Unfasten & removePower Supply
Operations of DisassemblyOperations of Disassembly
Unfasten Drive Housing Remove Rubber Feet
Work Area
** Pictures taken from actual disassembly at PRCC**
Work Method Work Method ResultsResults
Assume 2 hour work period per dayAssume 2 hour work period per day Allowances taken into consideration (26%)Allowances taken into consideration (26%)
Use of force, energy 5%Use of force, energy 5%Mental Strain 1%Mental Strain 1%Monotony 1%Monotony 1%
Personal allowance 5%Personal allowance 5%Unavoidable delay 10%Unavoidable delay 10%Basic fatigue 4%Basic fatigue 4%
De-manufacturing rate for one unit:De-manufacturing rate for one unit:8.16 units per hour = 7.35 minutes per unit8.16 units per hour = 7.35 minutes per unit
Economic AssumptionsEconomic Assumptions
Costs are analyzed Costs are analyzed as present economy as present economy studiesstudies
Analysis designed to Analysis designed to break-evenbreak-even
No MARRNo MARR
Economic DataEconomic Data
Outside service costs:Outside service costs:
Labor = $10 per unitLabor = $10 per unit
Transportation = $1.70 per unitTransportation = $1.70 per unit
Total = $11.70 per unitTotal = $11.70 per unit**
* * prices based on full capacity truck loadprices based on full capacity truck load
Tools and Equipment Tools and Equipment **
Computer Screwdriver Computer Screwdriver $20.55$20.55 Grip Floor MatGrip Floor Mat $14.79$14.79 HammerHammer $5.91$5.91 Industrial StoolIndustrial Stool $59.38$59.38 Protective EyewearProtective Eyewear $3.77$3.77 Utility BarUtility Bar $4.24$4.24 Utility KnifeUtility Knife $0.59$0.59 Utility Table BinUtility Table Bin $0.45$0.45 Wire CutterWire Cutter $9.90$9.90 Wood TableWood Table $310.00$310.00 Worker’s GlovesWorker’s Gloves $6.50$6.50
*(unit prices)
Target Cost AnalysisTarget Cost Analysis
Unit Elements Factor Estimates RowDE-MANUFACTURING COST ELEMENTS Units Cost/Unit Factor ofRow Total
A: Factory Labor 24.51 13.48* 330.39$ B: Quality Costs - Training 10% A 33.04$ C: TOTAL LABOR 363.43$ D: Factory Overhead - Set up Costs 521% C 1,893.47$ E: Outside Manufacture - Transportation Cost 22% C 79.95$ F: TOTAL DIRECT CHARGE 2,336.85$ G: Facitily Rental -H: TOTAL DE-MANUFACTURING COST 2,336.85$ I: Quantity - Lot Size 200J: De-manufacturing Cost/Unit 11.68$
Outside Cost/Unit - Target Cost 11.70$
* U.S. Department of Labor, Bureau of Labor Statistics - March 1998* U.S. Department of Labor, Bureau of Labor Statistics - March 1998
Cost & Time EvaluationCost & Time Evaluation
Equipment cost per worker = $286.03Equipment cost per worker = $286.03 Set-up cost of $1,893.47 = 6 workersSet-up cost of $1,893.47 = 6 workers Disassembly rate for 200 units = 24.5 Disassembly rate for 200 units = 24.5
hourshours
RecommendationsRecommendations
Demanufacturing task as part of unused Demanufacturing task as part of unused computer handling operationcomputer handling operation
Schedule 2 workers per week for Schedule 2 workers per week for demanufacturingdemanufacturing
Set-up 2 workstationsSet-up 2 workstations 1 workstation for CPU disassembly1 workstation for CPU disassembly 1 workstation for sub-disassembly1 workstation for sub-disassembly Set-up cost = $572.06 Set-up cost = $572.06
Final ThoughtFinal Thought
Implementing an efficient de-Implementing an efficient de-manufacturing operation will result manufacturing operation will result in a 70% cost reduction. in a 70% cost reduction.