Reduced Production Costs Through Machine Uptime Improvement
Vestcom saw the need to reduce labor and material scrap costs in the high speed press operations in New Century, Kansas. Issues were identified in front end areas – customer order processing, planning and scheduling – as well as on the production floor. High schedule variability and multiple short order runs negatively impacted machine efficiency. In production, excessive machine downtime limited capacity and increased production costs. A project was initiated to improve planning and scheduling of orders and generate significant improvement to machine uptime in production.
The project exceeded savings goals, providing Vestcom with a 3:1 ROI. Labor cost per foot was decreased by 15%. Scrap costs were reduced by 23%. Numerous changes were installed in front end and production areas to increase machine uptime and reduce scrap.
Key Front End changes:
• Improved order consolidation.
• Improved order sequencing.
• Alignment of Scheduling with appropriate run speed and product change over standards.
• Reduction to the number of change-overs.
• Increased interaction with customers to help anticipate order demand and proactively combine orders.
• Creation of a 24-hour schedule lock down period, with an elevation protocol to authorize schedule cut-ins.
• Improved planning with a Daily Production Planning meeting attended by all key department leaders.
Key changes in Production:
• Creation of product change over teams to execute activities in parallel (average change over times reduced by 50%).
• Pre-staging of dies and inks prior to change overs.
• Re-alignment of operator schedules to allow machines to run through breaks.
• Reduction to the number of changeovers, reduction of change over time, reduced scrap and improving line uptime/efficiency.
• Reduced downtime of machines at shift changeovers.
• Improved run speed – creation of an optimal run speed matrix by product / by machine type (with critical input from skilled operators) to schedule and run products (with quality output) – average run rates improved by 18%.
The Client Experience:
“From the initial meeting (Sales) to the Analysis “report-out” and through the final results meeting on-site, the Carpedia team impressed me with their consistent, low key, methodical and highly analytical approach. My experience matched exactly with the referral interviews I conducted prior to kicking off our project. More importantly, the Carpedia team delivered a highly successful project and managed to win over a skeptical, highly resistant team at our facility in New Century, Kansas…you’ll be glad to know that I will happily provide references on Carpedia’s behalf. More importantly, I will be in touch about future projects.”
EVP & CFO, Vestcom International Inc.