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Strategies for Laser Printer Cartridge Manufacturing. Recharger Magazine Expo 2004 Session S70 Wednesday 1:00-2:30pm Mark Hibbard Washington County Community College. Remanufacturers as Entrepreneurs. Five Characteristics of Entrepreneurial Growth Company (EGC).
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Strategies for Laser Printer Cartridge Manufacturing Recharger Magazine Expo 2004 Session S70 Wednesday 1:00-2:30pm Mark Hibbard Washington County Community College
Remanufacturers as Entrepreneurs Five Characteristics of Entrepreneurial Growth Company (EGC) Process that leads up to looking for modification of production floor, including process control, process modification, or redesign Entrepreneurial Growth (Time)
Risk Management Initially • Not much money, and even then … • Not much experience in the industry … • Persuading others to take on risk: employees, suppliers, customers Initial Success • Significant value created that might be lost • To grow, the tasks are more difficult (management, strategy, sound investment) • Fear of failure, you may lose company, or lose control, or lose market share
Intellectual Property Earliest Stages: • Remanufacturers create solutions .. Improvisation, creativity is maximized Growth • Education .. Process knowledge • Incremental improvement and variations • Distinctions leading to control • Protecting you distinctions • Start to think >> “get bigger, get niche, or get out”
Planning Beginning Stages: ……………….. seek resources • Research & Development = 14% • Business planning = 33% • Financial help = 50% • Management by crisis vs. detailed strategy • However successful remanufacturers show Adaptiveness, Open-mindedness, Quick Decisions, Relationship-based sales Growing • Demands strategic planning, tactical decisions • Demands coordinated management • Demands investment which demands accountability
Expertise Initially • Most have no industry experience (Printing, EP, Toner, Testing) • High opportunity is recognized (sales, $$) • Intelligence, desire, adaptability, sales & marketing skills lead to linked recoveries Growth Requires • Upgrading resources • Skilled, experienced, specialized training • Strategy
Formal Capital Early • No angels • 66% or less than find capital > $50,000; average is about $25k; not millions of dollars Success requires • Transition through growth stages • Truly comprehensive changes in the entrepreneur • From start to finish, new attitudes and new skills and roles
Your Manufacturing Operation Operations ( 2000-5000 Carts/mo) • Materials • People • Sales • Time • Performance • Growth Large Operations ( 5000-20,000 carts/mo) • Materials • People • Sales • Time • Performance • Growth • Quality • Management Small Shop ( < 500 Carts/mo) • People • Sales • Time Medium Shop ( 500-2000 Carts/mo) • Materials • People • Sales • Time • Performance • Sales • Manufacturing
Current Wisdom “It is not the strongest of the species that survives, nor the most intelligent … … but the one most responsive to change.” - Charles Darwin
Your Manufacturing Operation • Design for production • Materials management • Manufacturing processes • Manufacturing systems & automation • Physical controls for manufacturing systems • Information control in mfg enterprises • Quality management • Remanufacturing consumables is in the class of “entrepreneurial growth companies (EGC)” • Not just a fancy name for a small business • Most EGCs evolve over time, through rough stages of development
Starting Points • Failure is Acceptable • No such thing as winners and losers • More like: winners and learners • Product design and development • Process design and control • Manufacturing system and facility design and analysis • Production planning and control • Operation analysis and management • System engineering and integration • Technology, human resource and organization management • Technical sales and technical marketing
A Basic Model of Change CHANGE PAST FUTURE The “present” is not relevant Fact Inference
Managing = Manufacturing • A manager’s product is >>> action. • A manager’s raw material is >> information. • Analysis and Synthesis are a part of the manager’s assembly line.
Cultivate • Share Knowledge. • Identify Best Practices. • Build Institutional Processes. • Attract Best People. • Create Training Courses. • Communicate Consistent and Coherent Messages to Customers and Employees. • Inbound Logistics • Receiving / Inspection • Production Scheduling • Inventory Control • Warehouse management (Position control) • Operations • Production • Equipment Maintenance • Rework • Facilities • Inventory • H/R • Outbound Logistics • Order Acceptance • Picking • Inventory Adjust • Cycle Count / Inventory Adjust • Ship Confirm • Service and Support • Technical Training • Production Process Development • Testing • Documentation • Recruit / Hire
Lean Objectives Anything that adds COST to the product without adding VALUE • muda - waste • mura - inconsistency • muri - unreasonableness • Waste • Correction >> Rework “First Pass Yield” • Waiting >> Any non-work time waiting for tools, supplies, parts, etc.. • Motion >> Any wasted motion to pick up parts or stack parts, wasted walking • Processing >> Doing more work than is necessary • Overproduction >> Producing more than is needed before it is needed • Conveyance >> Wasted effort to transport materials, parts, or finished goods into or out of storage, or between processes. • Inventory >> Maintaining excess inventory of raw mat’ls,parts in process, or finished goods.
LOOK at YOUR Operation • Forecasting (sales, manufacturing, materials) • Delays (shipping, suppliers, scheduling) • Transportation (floor layout, build area, evac & kitting) • Inventory (positions, control, materials, systems) • Inspection (process validation, zero defects) • Defects or correction (validate corrective action, inter-dept. feedback) • Inefficiencies and other non-value added movement (within processes) Traditionally RM’s look at floor layout, capital equip, test equip, new components, and other singular objective to improve operations … Not that easy.
Customer Needs Enterprise Planning Strategy New and Current Products/Service Performance Priorities and Requirements Quality, Dependability, Service Speed, Flexibility, and Price Enterprise Activities & Capabilities Operations & Supplier Capabilities Technology Systems People R&D Training Materials Quality Distribution IT & Support Platforms Financial Management Human Resource Management Information Management Enterprise Tactics
Timing is now • Remanufacturing is decades smarter New Business / New Product Life Cycles • Development 1986 • Growth 1995 • Expansion 1999 • Maturity Mono Laser • Saturation Mono Laser • Development – Color 2002 • Growth -- Decline Mono – ripe for lean technique as color goes into the “growth”
US Market Monochrome Laser Printer (CAP Ventures 2000) Total Cartridge Market OEM Portion Remanufactured Cartridge Market RM Portion ~27%
Opportunity Placement Color opportunity to model new process ideas • Development stage, there are no cartridge sales at all. However manufacturing must support a development area and resources to insure a timely product launch. • Growth stage, sales are slow and marketing costs are high; often manufacturing resources need to be supplemented by frequent training sessions and manufacturing team building. • Expansion stage, sales should grow more rapidly, and manufacturing teams are executing their well thought out plans to accommodate growth. • Maturity stage, sales will plateau as most customers who want the product have quality sources for the product. Manufacturing teams have predicted this plateau and the production schedules will adjust for sales volume and inventory reduction. • Saturation stage, every customer who wants the cartridge product has several competitive sources for acquisition, and there are few opportunities for increasing sales. • Decline stage, cartridge sales fall and the product eventually becomes obsolete. Manufacturing teams have transitioned resources to new products and reduced raw materials and finished goods to reduce financial risk.
Introduction 2 years Growth 2 years Maturity 2 years. US Market Color HP 4500 --- 4550 ---- 4600 Total HP4500 Cartridge 9500/3500/2003 4600/2002 4550/2000 Remanufactured Color Cartridges 4500/1998
Process Developments for Planned Improvement at Critical Process Points • SX Corona Wires • NX Developer sleeve / PCR’s • EX Toner/OPC • 4000 Developer sleeve / blade • Pocket carts OPC’s / Seals / PCR’s • WX Developer Sleeve Sys / Toner • 4000 Toner / Developer Sleeves • 4500 Toner / Seals / Rollers
Data - Truth • Statistics 101 • List ALL areas where data can be gathered • Accuracy • Usable data • Taking the data is the first step • Leaders need time to work with the data to make process changes • Acquisition and presentation
Objectives: Consistency, Reliability, Accuracy. Raw Materials ( Purchases) Empties Incoming Inspection: Quality Control Methods and Examples Allies: Interactive Vendors, Customer feedback, Adversaries: Variation, Unexpected Vendor modifications, Inappropriate process deviation Teamwork First and Foremost
Process Design & Details • Cell …………….. To ……………... • From past experience develop cell picture • Solve material flow • Breakdown training issues • Document bill of materials (BoM) • remember the “LEAN long range plan” (LLRP) • ……… Managed Production • Correct process • Training • Scale UP
Prototype Process Improvements/Changes (IE1011) • Draw pictures … cut out the paper pieces • Map the process from the Cell stage to Managed production • Look at the facilities details • Air .. Heat … Power .. Lights … Traffic … Storage • Pick your people resources Carefully … Cultivate shared ideas • Set up a dummy cell …. Dry run • Check Raw materials flow • Who’s waiting • Check your plan
Internal Corrective Action (plan for it) TEAM • Process defects or procedural changes • Review with all production teams … you may have some ability to kill a problem before it starts • Retain Visual samples of manufacturing issues for training • Prevent drone mistakes … Awareness of the process is crucial • End of shift positive reinforcement • Announce data • Show / Chart progress • Training awards … not material … verbal praise in front of peers …. MB walking around (MBWA)
Team Leaders are “people” • Groom people with future goals in mind • TRAINING is communicating your lean plan • Clear concise and ATTAINABLE Goals • POSITIVE Atmosphere Always
Critical Area's Management • Empties (The EVAC people !!!!) • Source … Cleaning … Inspect …. Waste … Cost • Cleaning & Handling (High incidence of waste) • Storage … Damage Control … Assembly Staging • Solvents … Inspect .. Waste … Time … Cost • Assembly • Readiness … Tools … Inspection … Time .. Cost
DO you NEED Capital Equipment ? • What is Primary Equipment requirements • Time savings • Quality enhancement • Training required • Human component • New tech .. New process • Secondary requirements • Maintenance • Obsolescence • Expansion
Capital Equipment & Productivity • Facility Layout • Material flow • Cleanliness • Documented Procedures • Simplifies training • creates standard • Training • Cross training, and daily rotation • Team Leaders … Building TEAM • Sound Forecast • Minimize... waste, storage,hassles • Supply Chain Management
Cell to Managed ProductionTransition • Planned transition … • Pick the scope of scale-up early • Set training goals early … DO NOT wait • Excellent training and complete task description fosters worker happiness • Success is people when you scale up • EXPECT Surprises … (good and bad)
Planned new material, remove waste Assemble Inspect & Stage Empties.. Disassembly & Cleaning & Seal Remove reject material Test & await packaging Generic Cell Empties Diagram and Document uS Visio – has great layout tools and documentation features
Keep it Simple Stupid (KISS) • Visual aids … 75% of learning is facilitated by visual cognition. PICTURES not WORDS (Digital Cameras are CHEAP) • Constant positive reinforcement is Constant Improvement. • Cross train similar job functions .. Remember social circles and peer pressure are your allies • Disassembly ---- Assembly • Evacuation ---- Component Prep • Pre Test ---- Final Test Language Barriers More than 60% of RM’s have non English Speaking Staff (ESL)
Assess each work function - REGULARLY • Map mini processes • document • training guidelines • WORK Timing IE 101 • Mini production for some work function • Skill assessment • Time • Realistic training goals • Critical for process control • No job is more important
Production Layouts • Layouts Continued • Assumes products total ~250 carts a day (3-6 products) monthly target is 10000 • Setup is for one line “teams” and a “specialty cell” • Product switchovers are scheduled on daily intervals
Component Cleaning and Prep area • PCR • OPC • Corona Hopper Split & Prep Production REWORK Final Test Printing Area Materials cart Hopper Clean Sealing Filling Box Tape & Sort Disassem. Hopper Reassemble Waste Bin Assm.. Waste Bin Clean. FINAL Assemb. Labeling / Bagging / Packaging Area Storage Area Specialty Reman Cell Incoming Dock Area Empties Prep Area / Recycling / Sorting Ship Dock Area Tear-down / Evacuation Production Layouts 2000 square feet
Safety Teamwork • FROM the TOP Down • ALL quality management tools start from acceptance at the top … Safety requirements and concerns are PRIMARY • High visibility area for procedures and Training • Monthly assessments
Critical Path -- Toner - OPC’s -- etc. • Toner Placement/Storage: Bulk purchased .. $$$ mark/label all position, track mass flow, bottling?, Filling, Cleanouts? Protect from Temp/Humidity Fluctuations • OPC’s – Lightsafe, Clean Dry • Magnets/Sleeves - Clink Clink • PCR’s – Clean, Dry, separate !!! • Cleaning Blades – Critical, safe the edge, NO stacking • Charge Blades – Major critical element post EX and Pocket cartridges • Print Testing: Time, Data, Review, Statistics, Charts, REVIEW what are you screening? • Acceptance Criteria: First Pass Yield:
Summary • More than 25 individual items may be purchase for network cartridges today. • Less than 38%of remanufacturers have established quality processes for their products or processes • Less than 50%of the remanufactured cartridges sold last year met an OEM specification • Lower Cost and higher profits will only be realized by process control and good manufacturing practice