2006: Taking Care of the Pennies (Part 1)
MANUFACTURER COLLABORATION – AEROSOL CAN and EXTENSION TUBE ATTACHMENT
Executive on Demand Position:
TBA
Project Outline:
TBA
Project Outcome:
A procurement strategy that has proven successful in my efforts to deliver added cost savings to manufacturers is to include in the materials sourcing analysis members of the engineering and p
roduction group within the client’s factory. Discussions that include a broader knowledge of the production process can be an added secret ingredient to delivering larger savings related to delivering finished goods to customers.
In a meeting at an aerosol filling company it was identified that the new investment in the aerosol filling line was not being optimized. The filling line speed had the capability of running at a speed of 120 cans per minute however the can labeling equipment had a maximum speed of 60 cans per minute and required adding a new roll of labels every 2000 units and lastly whenever a product required an actuator extension tube attached to the can, this equipment could only run at 40 cans per minute. A major investment would be required to update all ancillary equipment to meet the capability of the line and this capital was not available.
After reviewing the process and meeting with Asian based suppliers, a strategy was developed to restructure the can filling process by transferring the processes responsible for slowing down the flow of the new aerosol filling line. To optimize the flow of product on the new filling line regardless of the product being filled, a new aerosol can aerosol
specification was created that included pre-printing the can in Asia (process no longer required labeling locally) and for products requiring and attached extension tube, this also was done at the time the can was made and printed at the Asian factory.
The final outcome in transferring several expensive processes to an Asian based factory yielded saving in label cost reductions in excess of 80%, a production increase of 40% related to removing the label equipment process during the filling process and a 60% increase in productivity related to eliminating the extension tube attaching equipment.