December Production Operations Report: Performance Insights and Focus Areas
The December production report shows a mixed performance across different operations. Shafts production saw a 11.6% cost management improvement and an 11% sales increase with $129K boost. Scrap increased by 5.3%, equating to $72K additional costs, averaging $4,000/day. Significant challenges include IPIP violations and a $25K scrap from a faulty hydromat indicator. Efforts for improvement focus on alternate checking methods and monitoring scrap rates. Operational enhancements include weekend shifts and equipment optimizations, aiming for a targeted 90,000 units per week.
December Production Operations Report: Performance Insights and Focus Areas
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Presentation Transcript
P roduction O perations
Production Focus - Shafts • December C.M.: 11.6% under, $103K under • Sales +11%, +$129K • Scrap +5.3%, +$72k….$4,000/day avg. • IPIP violations • Faulty indicator at hydromat ($25k scrap) • Alternate Checking methods • Scrap Cart Focus • Jan mtd scrap at $1,300/day, <2% (on track)
Production Focus - Shafts • Outside Processing, +3.0%, +$54k • Direct Labor, +3.1%, +$61k • Weekend OT • Weekend Shift • Push towards 90,000 / wk. • Euroturns and Hydromats on 12 hrs. • 3rd Shift relieves ET & Hyd, + covers Dehoffs • This wk…..Euroturns 18,300/day avg …… Hydromats 16,100 / day avg
Production Focus - USD • December C.M.: +18.4%, +$542k • Sales 4.75x plan, +$834K • Reducing labor – loaders on SNK’s - loaders on Retainers (total of 12 headcount reduction) • 70k+ USD’s shipped last two weeks
Production Focus - USD • December C.M.: -$2k, plan of $141k • Sales at 49% of plan, -$184K • In production on both assemblies ! • 50/50 split….7,666/wk of each • Bottlenecks • Haas Driller • ID Grinding
