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Optimization of Assembly Line for AMR Hot-Rod at Mueller Systems: Efficiency and Cost Reduction

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wauna
11 diapositives · 259 Views · Jul 29, 2014

This document outlines a comprehensive analysis of the assembly line process for the AMR Hot-Rod at Mueller Systems, focusing on improvements that enhance efficiency, reduce costs, and maintain high quality. The current process has remained unchanged over the past decade, with significant opportunities for optimization. The proposed changes could yield a cost reduction of $0.24 per unit and savings of up to $34,000 annually, while increasing production capacity to 144,000 units per year. This strategic improvement plan includes revisions to assembly steps, reduced cycle times, and enhanced throughput.

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  1. Muller systems assembly line optimization MGMT 5060 – Harvard University Prof. Paul Tumolo Team MAT Maria Hevia Nick Dion FatihAvci Chaitanya Misal

  2. Mueller Systems • Smart Metering Solutions • Increase Efficiency • Reduce Cost • Improve Customer Service Electricity Gas Water

  3. Mueller Systems Data is communicated wirelessly from meter to the mobile unit Data is transferred from mobile unit to data server Mobile Data Collection AMR Hot Rod - Device of interest Municipal data server Meter

  4. Product Overview • AMR Hot-Rod (radio transmitter unit) • Highest selling product for Mueller • Unchanged assembly line for last 10years Shipped to USA Circuit Board CHINA Unit Assembly MEXICO

  5. Current Assembly Process Remove latex from board Solder antenna to the board Push wires and seal openings with epoxy Stn. 1 30 30 45 Solder battery Solder wires Assemble unit Test and label the unit Stn. 2 30 10 25 60 Potting – Seal unit with epoxy Stn. 3 50 Vacuum units to remove air bubbles (Batch of 5 units) Seal Units (O-ring) Final quality test Epoxy Curing Stn. 4 150 150 Note: Each color represents one worker

  6. Metrics for current process COST Per unit cost: $3.08 Cost /year: $409,640 First Pass Yield: 97% QUALITY 5 hand-offs DELIVERY Capacity/Year: 133,000 units (48 hour work week) 6 Line Workers Cycle Time: 65 seconds Idle time: 90 seconds

  7. Suggested Improved Process Remove latex from board Solder antenna to the board Push wires and seal openings with epoxy 30 30 45 Stn. 1 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 Stn. 2 30 10 30 25 Solder battery Solder wires Assemble unit Test and label the unit Potting – Seal unit with epoxy Potting – Seal unit with epoxy Stn. 3 50 50 Vacuum units to remove air bubbles (Batch of 4 units) Seal Units (O-ring) Final quality test Epoxy Curing Stn. 4 120 120

  8. Improved metrics COST Per unit cost: $2.84 Savings $34,000 First Pass Yield: 97% QUALITY 3 hand-offs DELIVERY Capacity/Year: 144,000 units (48 hour work week) 6 Line Workers Cycle Time: 60 seconds Idle time: 25 seconds

  9. Net value of improvement • Potentialpricereduction: $0.24/unit(negotiable) • Potentialsavingsup to: $34,000/year • Cycle Time reductionby: 5 seconds • Increasethroughputby: 11,000units/year • No changein number of workersorworkinghours • Reducehand-offs, potentiallyimproveFPY • 200 fewerhoursrequiredto produce theoriginal output (133,000 units/year) • ReducedIdle time from 90 secondsto 25 seconds • Investmentment of 1 extra test computer

  10. 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 144,000units/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