Rope Shovel LCP (1)
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Transcript of Rope Shovel LCP (1)
Electric Rope Shovel Cost Reduction, LCP 2013
Corey Wurtzbacher, Product PurchasingMark Cigich, Product Purchasing,
Matthew Cena, Engineering
In-Scope Sections on 7495HR, 7495HD and 295
27 Sections1. Air & Lube System 15. Hoist2. Ballast 16. House Filter3. Boom 17. Housing4. Operator Cab 18. HVAC5. Cables 19. MCC6. Center Pintile 20. Paint7. Collector Rings 21. Propel8. Crawler 22. Rack & Rollers9. Crowd 23. Rev Frame10. Dipper 24. Skid11. Electric Room 25. Swing12. Equilizer Links and Ropes 26. Walkways13. Fire Suppression 27. Winch14. Frame
Phase 1: Idea Generation
• Purchasing, Engineering, Warranty, Field Service and Product Support to generate cost deliverables on in-scope rope shovel vehicles
• Meet weekly until all sections of machine covered• Emphasis on new cost reduction ideas and
collaboration between organization• Positive collaboration and support needed between
departments• Ideas to be recorded and organized by Mark
Phase 1: Involved Parties
• Pam Peterson, Purchasing• Tom Hassel, Field Service• Mark Cigich, Purchasing• Dan Larson, Engineering• Mike Burkhard, Purchasing• Matt Cena, Engineering• Maria Glorioso, Product Support• Louis Chang, Warranty
Phase 1: Deliverables
• Proposal Prioritization Matrix, December 1, 2012
Project Proposal Prioritization MatrixRope Shovel Section Proposal Rating (1 Unfavorable 5 Favorable)
Cost Saving
Impact to Customer
Implementation Cost & Time
Implementation Risks & Difficulty
Priority Rating
From
Dept. Responsible
Air & Lube System
1Standardize air & lube tubes 4.2 2 4 4 3.6 M. Cena Purch P. Peterson
2Explore use of different composites for tubes 4 3 4.1 2 3.3 M. Cena Eng. M. Cena
3Align order quantities of Rope Shovel tubes with other Cat products 5 3.3 4 3.8 4.0 M. Burkard Purch M. Burkard
Boom
4Quote weldments to outside vendors 3 2.5 4 4.9 3.6 M. Glorioso Purch. M. Burkard
5Redesign sheave point to leaner design and quote 4.5 3.7 3.8 2 3.5 M. Cena Eng. M. Cena
6Rationalize boom vendors, Re-Negociate Order Qty 4 3.1 3 3.3 3.4 D. Larson Purch. D. Larson
Crawlers
7Quote crawler links to crawler suppliers for discount 4 3 4.1 4 3.8 T. Hassel Purch. P. Peterson
8Renegociate contracts of crawlers for future demand changes 5 4.2 4.8 2.4 4.1 T. Hassel Purch. P. Peterson
Base/ Ballast
9Quote ballast assembly to other vendors 3.9 2.5 4.1 4.8 3.8 L. Chang Purch. D. Larson
10Redesign post girder to eliminate machining operations 4.8 4.9 5 2.5 4.3 D. Larson Eng. M. Cena
11Explore scrap metal use for ballast 3 3.5 3.3 5 3.7 T. HasselField Service M. Burkard
Phase 2: Feasibility on Proposals
• Follow through with investigation of proposals– Create storyboards for feasible proposals
• Many proposals may not be feasible, but we have accomplished our collaboration goal; we have opened the dialogue on cost reduction goals between engineering, purchasing, field service, and warranty.
Phase 3: Storyboard Creation
• Create storyboards on feasible proposals• Include anticipated savings, internal parties involved,
suppliers involved, risks and concerns, time required and final savings completion date
• These to be used for management for authorization for project execution
Phase 3: Story Board Creation
Phase 3: Storyboard Organization
Proposal Dept. Rep. Storyboard Created
Savings Date Savings Commitment (Annual)
Submission for Approval
PO Before PO After Actual Savings
Air & Lube
1Purch P. Peterson 8/22/2012 9/1/2013 $30,000 1/18/2013
2Eng. M. Cena N N -
3Purch M. Burkard 8/23/2012 7/1/2013 $50,000 2/18/2013
Boom
4Purch. M. Burkard 8/22/2012 5/1/2013 $380,000 3/17/2013
5Eng. M. Cena N N -
6Purch. D. Larson N N -
Crawlers
7Purch. P. Peterson 9/1/2012 9/1/2013 $200,000 4/19/2013
8Purch. P. Peterson 9/1/2012 9/1/2013 $305,000 3/17/2013
Base/ Ballast
9Purch. D. Larson N N -
10Eng. M. Cena 10/4/2012 9/1/2013 $355,000 3/17/2013
11Field Service M. Burkard N N -
Deck Assembly
12Purch. D. Larson 10/5/2012 9/1/2013 $70,000 3/17/2013
13Eng. M. Cena 8/22/2012 10/1/2013 $55,000 4/19/2013
14Eng. H. Littman 9/1/2012 10/1/2013 $60,000 4/19/2013
LCP Results, 2013
• $708,000 estimated savings for 2013• Project Organization executed for future management
of cost saving projects• Engagement between functions successful
– 30+ proposals generated
Acknowledgements
• Mark Cigich, Purchasing, Organizer• Pam Peterson, Purchasing• Tom Hassel, Field Service• Dan Larson, Engineering• Mike Burkhard, Purchasing• Matt Cena, Engineering• Maria Glorioso, Product Support• Louis Chang, Warranty