Transcript MS Powerpoint Presentation: Flexhitch

Capstone Project
Final Presentation
May 16, 2002
Dr. Thomas Robinson CMfgE
Agenda
Product Review
Goal Review
Design Review
Manufacturing
Quality
Finance
TL
Product Review
HITCH MOUNTING RACK WITH FLEXIBLE
ACCESSORIES THAT FIT THE ACTIVE
LIFESTYLE.
TL
Tim Legris - Project Manager
Ramon Tejada - Controller
Jim Lambert - Marketing
Lindsey Erickson - Design Engineer
James Rice - Research and Development Specialist
Randy Renwand - Director of Operations
TL
Bao Doan - Quality Engineer
Company Goals
Determine manufacturing capability
by July 31st 2002
Verify design through market surveys
Proof and Pilot run verification
Prepare for rollout utilizing yield management
TL
Company Goals Continued
Product for sale in stores by November 1st 2002
Determine ideal FleXhitch retailer and stock 20 stores with 5
units each
Implement KANBAN manufacturing process
Develop Marketing strategy to enter the new vehicle market
Capture 50% of Southern California market by December 2003
Perform Market Analysis and improve sales approach to meet
goals
TL
Implement a Focus Team to reduce production costs by 30%
and increase yield by 40%
Company Goals Continued
Be a nationwide producer of hitch accessories by
January 1st, 2006
Consistently high quality to promote brand recognition
Product available as an option on new vehicles worldwide
Provide Distributor Franchises
TL
TIMELINE
TASKS
1/31 2/7 2/14 2/21 2/28 3/7 3/14 3/21 3/28 4/4 4/11 4/18 4/25 5/2 5/9 5/16
1st Progress Report
Develop Prototypes
2nd Progress Report
3rd & Final Progress Report
Final Written Report
Action/Development
Completion Date
Goals Met
TL
100%
Product Plan - One Year Projection
Universal Hitch
Motorcycle Rack
Storage Rack with removable rail
Gas Can Rack
Tail Light Kit
LE
Product Plan - Five Year Projection
Golf Bag Rack
Lockable Tool box
Lumber Rack
Winch Rack
Barbecue Rack
LE
External Manufacturing Benchmarking
Select process
All Processes for most common product
Identify leaders for each process
Smaller Company = SPORTSRACK
Collect Data
Margin = 50%, Productivity = 80%, Efficiency
= 90%
Analyze Data
Process vs. Process
RR
Plant Projection - 1 Year
Manufacturing Systems
‘Little’ JIT - Schedule inventory, Ensure
resources, followed by Kanban
Mechanization
CAD & CAM, Combine some operations
Human Resources
Five flexible operators
Facility
50,000 sq.ft. 2/3 manufacturing. 1/3 warehouse
RR
Plant Projection - 3 Year
Manufacturing Systems
MRP begins
Mechanization
CIM - network computers and machines
Human Resources
Two Leads, Five flexible operators
Facility
50,000 sq.ft. 2/3 manufacturing. 1/3 warehouse
RR
Plant Projection - 5 Year
Manufacturing Systems
‘Big’ JIT - Eliminate all waste, MRPII
Mechanization
Some automatic loading and unloading
Human Resources
One supervisor, Three Leads, Seven flexible
operators
Facility
50,000 sq.ft. 3/4 manufacturing. 1/4 warehouse
RR
Router (Document #ROU001) for Universal Hitch FH-UHI-001
Operation 0010
Work center
Base Qty
Setup
Machine
Direct Labor
Operation 0020
Work center
Base Qty
Setup
Machine
Direct Labor
Operation 0030
Work center
Base Qty
Setup
Machine
Direct Labor
Operation 0040
Work center
Base Qty
Setup
Machine
Direct Labor
Cut & Deburr 24" square tube to size
Cell 1
1.00pcs
LBT001 Fixed Stop
#001 Cold Saw
.17 min
Cut & Deburr 12" square tube to size
Cell 1
2.00pcs
LBT002 Fixed Stop
#001 Cold Saw
.32 min
Cut & Deburr 2" square tube to size
Cell 1
4.00pcs
LBT003 Fixed Stop
#001 Cold Saw
.42min
Cut & Deburr 16.25 x 8" plate to size
Cell 1
1.00pcs
LBT004 Fixed Stop & Fence
#003 Shear
.09 min
Supply Chain
Steel Mill
Steel Vendor
Decision
Operation
Storage
Transit
Coating
Flexhitch
Retailer
RR
Customer
Supply Chain Continued
Computerized order tracking
Minimize ‘Bull-whip’ Effect
Innovative Flexhitch products
Higher Margins = Higher Instability
Match a Responsive Supply Chain
Mis-match an Efficient Supply Chain
Outsourcing
Material forming and cutting
Coating and Plating
RR
Flexible Plant Layout with Flowchart
008
CELL 3
007
006
009
0010
CELL 4
CELL 2
005
004
003
002
CELL 5
CELL 1
001
QUALITY ASSURANCE BASE
WAREHOUSE
INCOMING MATERIAL
RECEIVING DOCK
WAREHOUSE
FINISHED GOODS
SHIPPING DOCK
O
F
F
I
C
E
S
Quality Goals
Manufacture a high quality product
Less than 1% customer returns in the first year
Train employees to follow instructions & procedures
Establish a Continuous Improvement team
In process inspections
Achieve ISO 9001 certification by April 31st, 2003
ISO Oversight Committee
Implement Good Manufacturing Practices (GMP)
Internal auditing
BD
Quality Organization
GENERAL
MANAGER
Managers of
major functions
MAKETING
MANAGER
QA LAB
INSPECTION
QUALITY
MANAGER
QUALITY
CONTROL
MANUFACTURE
MANAGER
RELIABILITY
ENGINEERING
QUALITY
ASSURANCE
FLEXHITCH'S
ORGANIZATIONAL
STRUCTURE
Organization
Structure
President / CEO
QA Manager
Plant Manager
Sales / Marketing
Manager
CFO
R &D /
Engineering
Quality System
Analyst
Document
Control
Production
Manager
Program
Manager
Quality
Engineers
Receiving
Inspection
Production
Inspection
Manufacturing
Manager
Human
Resources
Maintenance
Department
Sales / Marketing
Staff
Plant
Superintendent
Manufacturing
Engineers
Material
Department
Shipp. / Rec'd
Manager
Secondary
Inspection
First-Article
Inspection
Accounts
Payable
Accounts
Receivable
Manufacturing
Floor
Secondary
Manager
Customer
Services
Production
Control
Purchasing
Secondary
Operations
Quality Manual
Purpose
Describe the policies & control structure of the
Quality Management System used to achieve
the mission at Flexhitch.
Content
Documents Flexhitch Processes
Includes 20 sub-sections
Follows ISO 9001 guidelines
Continuous Improvement
Work instructions and methods
Application to Flexhitch
Specific work procedures and instructions
BD
Work Procedures
In process inspections at workstations
Developed for Flexhitch Surface Coating Finish
Dimensional
Hole alignment
Surface finish
Joints
Strength
Additional procedures for each new product
BD
Quality Procedure for Surface Finish
Color Test
Alternate Color Test Method
Adhesion
General Appearance
Solvent Resistance
BD
Future Quality Efforts
Develop work procedures and checklists for each
critical manufacturing process
Continue to develop and modify working documents to
achieve ISO certification
Oversight Committee ensures focus on the continuous
quality improvement process
BD
Promotional Objectives & Strategies
1. Greatest Challenge 1st Year: Lack of Market Awareness
2. Strategies for Enhancing Market Awareness
A. Sales display at place of business
B. Company website (on-line & B-to-B sales)
C. Employees promotion
D. Car & Truck Dealership
E. Print Advertising
F. Local Cable outlets
RT
Cash Flow Analysis – 1st Year
1. Total Operating Costs (rounded)
2. Financing
A. Cost of borrowing 1.215M @ 8.1%
$ 1,215,000
$
Total Costs of Operations
$ 1,313,000
3. Operating Costs per Day (261 operating days)
A. $ 1.313 million / 261 =
$
Average Capital Recovery ($5, 032 / 48 units = ) $
Cost Per Item
RT
98,415
5,032
105
Rate of Return – 1st Year
RT
Average Capital Recovery Cost per Item
$ 105.00
Average Capital Recovery Cost per Item
+ 18% Internal Rate of Return
$ 123.00
Projected Productivity Schedule
Year
RT
PPDay x DPM = PPMonth
= Accum. % Increase
1
48
22
960
=
N/A
2
62
22
1, 344
=
28.5
3
110
22
2, 419
=
44
5
219
22
4, 838
=
50
Cash Flow Analysis – 2nd Year
1. Total Operating Costs (rounded)
2. Financing
A. Cost of borrowing 1.215M @ 8.1%
$ 1,000,000
$
Total Costs of Operations
$ 1,081,000
3. Operating Costs per Day (261 operating days)
A. $ 1.081 million / 261 =
$
Average Capital Recovery ($4, 141 / 62 units = ) $
Cost Per Item
RT
81,000
4,141
67
Rate of Return – 2nd Year
Average Capital Recovery Cost per Item
$
67.00
Average Capital Recovery Cost per Item
+ 18% Internal Rate of Return
$
79.00
Internal Rate of Return if Prices are Unchanged $ 123.00
RT
Cash Flow Analysis – 5th Year
1. Total Operating Costs (rounded)
$ 1,000,000
2. Financing
A. Cost of borrowing 1.215M @ 8.1%
$
Total Costs of Operations
$ 1,081,000
3. Operating Costs per Day (261 operating days)
A. $ 1.081 million / 261 =
$
Average Capital Recovery ($4, 141 / 219 units = ) $
Cost Per Item
RT
81,000
4,141
18
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FleXhitch
498 Flexhitch Way
Long Beach, CA 90000
Phone: (562) 985 - FLEX
Fax: (562) 985 - 0000