Wednesday, May 18, 2022

IE Continuous Improvement - 3 Years - 50% Cost Reduction - Diplexer Line

Three Major Channels of Process Improvement.
1. Process Redesign by Process Planning Team.
2. Process Improvement Study by Industrial Engineering Team.
3. Continuous #Improvement by Involving Shop Floor Employees and All Employees.
Continuous Improvement - Employee Participation Principle of Industrial Engineering


New:  Industrial Engineering ONLINE Course

Industrial Engineering of Diplexer Product Line


Continuous improvement in engineering of manufacturing processes leads to nearly 50% cost reduction on wireless network diplexer components.



A leader wireless telecommunications OEM required reducing the costs of its diplexer product line in line with its competitors.

Solution: Product and Process Industrial Engineering


The consulting organization worked collaboratively with the customer to improve product design and manufacturing processes.

The continuous process improvement program over a period of three years yielded the following achievements:



Fixture Development: Developed a  tombstone fixture design which allowed for rapid load/unload reducing component set-ups required from 3 to 1.

Improvement resulted in 7.9% cost reduction.


Inspection Improvement: Established inspection protocol utilizing a redesigned set-up which allowed for meticulous 100% first article inspection that reduced defects.

Improvement resulted in 1.2% cost reduction.

Change in Blank: Replaced the existing material blanks with  aluminum extrusions that reduced waste of material.

Improvement resulted in 5.5% cost reduction.

Improvement in Blank: Further improved the extrusion design with more tightly controlled tolerances and reduced material requirement.

Improvement resulted in 0.9% cost reduction.


Tool Setup Improvement: Increased set-up efficiency, reduced tool inventories  by standardizing tooling libraries across part number and band derivatives.

Improvement resulted in 5.1% cost reduction.

New Machine or Machine Replacement: A cutting-edge CNC milling machine capable of very high speed tool changes and rapid rates with maximum spindle speeds of 15,000 RPM’s was recommended for purchase. It gave dramatic efficiency improvements.

Improvement resulted in 6.7% cost reduction.

Product Design Changes: Design changes for 3 features through collaborative work with  customer engineering staff.

Improvement resulted in 6.7% cost reduction.


CNC Programs Improvement: Continuous improvement of CNC programs by incremental improvements in feed rates, based on changes in tools, minimizing tool path lengths, and establishing smart program home positions.

Improvement resulted in 4.8% cost reduction.

Product Design Changes: Design changes to provide for faster post machining assembly and tuning.

Improvement resulted in 1.3% cost reduction.

Diversification of Products: Realized economies of scale by maximizing the utilization of production hours through strategic diversification of products

Improvement resulted in 1.8% cost reduction.

Modeling & Simulation of Batch Quantities and Schedules: Modeling a variety of scheduling and production floor scenarios using sophisticated ExtendSim software provided with a vehicle for analyzing toggled variables in virtual reality. Significant reduction achieved in cycle times and WIP inventories, while maximizing work-center utilization.

Improvement resulted in 3.4% cost reduction.


Simulation of Product Sequence: Further minimized average required set-up time, by working with simulation data to develop real-world what-if scenarios that targeted the most efficient production grouping possibilities

Improvement resulted in 1.0% cost reduction.


Result:

Effort over a three year period gave rise to a  series of noteworthy improvements.  A total cost reduction of nearly 50% of the production cost of the line was realized over a period of three years. Continuous process improvement at Olympic Precision Machining resulted in increased efficiency and reduced costs, thus providing product competitiveness to the organization. An excellent industrial engineering case study that used both product industrial engineering and process industrial engineering.

Reference
http://opmachining.com/about/customer-testimonials-case-studies/manufacturing-process-improvement/


The case illustrates the feasibility of the following value creation model for industrial engineering jobs.

A target of $600,000 per a BSIE based IE team per annum.

Calculation shows 3 years payback for annual investment in IE team & projects, and NPV of $52,680 at the end of 4 years. If the process continues after 4 years, the NPV will increase.

Value Creation Model for Industrial Engineering - Productivity Engineering. 


https://nraoiekc.blogspot.com/2020/03/value-creation-model-for-industrial.html





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