EXECUTIVE SUMMARY 3TTO5/3TT06 PROJECT

August 24 2012

Prepared by Julian Kalac, P.Eng

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BUSINESS SITUATION• Don Park (DP) makes over 440,000 3TT05”/3TTO6” a

year.

• Both products are SKU’s for all customers including Home Depot

• Current capacity is 550,000 pcs/year , at peak season customer demands exceed machine capacity

• The cost of producing 1- 3TTO6” is $1.28/pc with a Labour cost of $0.59

• There are 2 critical labour intensive operations that cost $0.26/pc and are BOTTLENECKS preventing additional capacity—continue next slide

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TOP-TO-BOTTOM TAKE-OFF

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3TT06”

BAND SAW

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BLANK SIZE FROM CUT 2 LENGHT

BAND SAW CUT PATTERN

1-BAND SAW-LABOUR INTENSIVE

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REQUIRES SKILL, STRENGHT AND EXTENSIVE LABOUR

FISHLOCKING

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1-FISHLOCKER MACHINE

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FISH-LOCK MACHINE IS THE MAIN

BOTTLENECK IN THE BOOT

PRODUCTION.

ONLY 1 M/C and NO BACK-UP. NO

SPARE PARTS/TOOLS,

WIP BOX

SOLUTION HIGH SPEED STAMPING PRESS

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USING PROGRESSIVE DIE

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2 Operations @ 1 TIME

BENEFITS

• Increased capacity by over 1,000,000 units/year

• Increase profitability and become more competitive

• Reduced labour cost from$0.59/pc to $0.30/pc

• Current Std cost= $1.28/pc

• Future Cost =$0.98/pc

• Total savings= $158,000/Year

• 1.26 Payback period, ROI= 77%

• Ability to run a Lean 1-piece flow instead of a Batch & Que type of production

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QUESTIONS/COMMENTS?

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