Muller systems assembly line optimization
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Transcript of Muller systems assembly line optimization
Muller systems assembly line optimizationMGMT 5060 – Harvard University
Prof. Paul Tumolo
Team MAT Maria Hevia Nick Dion Fatih Avci
Chaitanya Misal
Mueller Systems
Smart Metering Solutions
Increase Efficiency Reduce Cost Improve Customer Service
Electricity Water Gas
Mueller Systems
Data is communicated wirelessly from meter to the mobile unit
Data is transferred from mobile unit to data server
Municipal data serverMeter
Mobile Data Collection
AMR Hot Rod - Device of interest
Product Overview AMR Hot-Rod (radio transmitter unit)
Highest selling product for Mueller Unchanged assembly line for last 10years
Circuit Board CHINA Unit Assembly
MEXICO
Shipped to USA
Current Assembly ProcessRemove latex from board
Solder antenna to the board
Solder battery
Push wires and seal openings with epoxy
Solder wires Assemble unit
Test and label the unit
Potting – Seal unit with epoxy
Vacuum units to remove air bubbles (Batch of 5 units)
Seal Units (O-ring) Epoxy
Curing
Final quality test
Stn. 1
Stn. 2
Stn. 3
Stn. 4
30 30 45
30 25 10 60
50
150 150
Note: Each color represents one worker
Metrics for current process
6 Line Workers
5 hand-offs
Cycle Time: 65 seconds
DELIVERYCapacity/Year:133,000 units(48 hour work week)
Per unit cost: $3.08
Cost /year: $409,640
First Pass Yield:97%
QUALITY
Idle time:90 seconds
COST
Suggested Improved Process
Stn. 1
Stn. 2
Stn. 3
Stn. 4
Remove latex from board
Solder antenna to the board
Push wires and seal openings with epoxy
Remove latex from board
Solder antenna to the board
Push wires and seal openings with epoxy
Solder battery
Solder wires Assemble unit
Test and label the unit
Solder battery
Solder wires Assemble unit
Test and label the unit
Potting – Seal unit with epoxy Potting – Seal unit with epoxy
Vacuum units to remove air bubbles (Batch of 4 units)
Seal Units (O-ring) Epoxy
Curing
Final quality test
30 30 45
30 25 10 30
50 50
120 120
Improved metrics
6 Line Workers
3 hand-offs
Cycle Time: 60 seconds
DELIVERYCapacity/Year:144,000 units(48 hour work week)
Per unit cost: $2.84
Savings $34,000
First Pass Yield:97%
QUALITY
Idle time:25 seconds
COST
Net value of improvement• Potential price reduction: $0.24/unit (negotiable)
• Potential savings up to: $34,000/year
• Cycle Time reduction by: 5 seconds
• Increase throughput by: 11,000 units/year
• No change in number of workers or working hours
• Reduce hand-offs, potentially improve FPY
• 200 fewer hours required to produce the original output (133,000 units/year)
• Reduced Idle time from 90 seconds to 25 seconds
• Investmentment of 1 extra test computer
Our Suggestions Option 1:
Mueller continues buying 133,000 units/year (Number equals the output old process)
New process can produce them in 200 fewer hours Mexican facility can use this free time to take other clients orders Negotiation per unit ($2.84/unit vs. $3.08/unit) Potential savings up to $34,000 per year
Option 2: Mueller buys 144,000 units/year (Total output with newer process) Negotiation per unit ($2.84/unit v. $3.08/unit) No change in number of workers or work duration Potential savings up to $34,000 per year
Mueller and Mexican facility should share the savings in order to leverage process improvement
Mueller can also negotiate to pay per hour instead of pay per unit to leverage any further improvement in process