Changing formulary mix times to decrease cost and increase production.
A plan was put together of products that would benefit the most from changing formula mix times. Products included
in the proposal were Molub-Alloy 936 SF Heavy A, Molub-Alloy 8031/6000, and Molub-Alloy 1500 Gear Oil. These products were chosen as their sales account for 43.7% of total production of the Open Gear Blending department, and also because their formulations are very close to several other products, that could very easily be integrated into the mix time changes.
Upon integration of all proposed product lines, total percentage of Open Gear production that would be affected by changes in mix times would be approximately 86% of production, totaling estimated 3.1 million pounds per year at an average increase in efficiency of 50%.
This project is unique in that there is absolutely no risk because there are in-process steps to check for even dispersion of materials. Furthermore, as the products will
all be made using the same equipment and manpower, the increase in efficiency in this department will allow the Tehachapi Open Gear department to better serve its customers, eliminate need for overtime, and allow better planning and stocking practices as emergency order situations will be decreased.
As business demands have increased, our only means of increasing capacity has been overtime. This department’s production needs has historically been the cause of 50% of the overtime at the Tehachapi facility, while the volume of the department makes up for around 20% of the facility’s sales.
The major contribution of these changes will be a decrease in bottlenecks in the production of these goods and the ability to keep up with orders in a cost effective manner. These changes will also very likely allow the Tehachapi facility to better utilize its current human resources to higher volumes of production.