Transcript Laser Printer Cartridge Manufacturing for 2004

Strategies for Laser Printer Cartridge
Manufacturing
Recharger Magazine Expo 2004
Session S70
Mark Hibbard
Wednesday 1:00-2:30pm
Washington County Community College
Remanufacturers as Entrepreneurs
Five Characteristics of Entrepreneurial Growth Company (EGC)
Five Characteristics
Formal
Capital
Expertise
Planning
Intel Prop
Risk
Time of Entrepreneurial Period
Entrepreneurial Growth (Time)
Process that leads up to
looking for modification of
production floor, including
process control, process
modification, or redesign
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
Five Characteristics
Formal
Capital
Expertise
Planning
Intel Prop
Risk
Time of Entrepreneurial Period
Intellectual Property
Earliest Stages:
• Remanufacturers create
solutions .. Improvisation,
creativity is maximized
Five Characteristics
Formal
Capital
Expertise
Planning
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”
Intel Prop
Risk
Time of Entrepreneurial Period
Planning
Beginning Stages: ………………..
resources
•
–
–
–
Research & Development = 14%
Business planning = 33%
Financial help = 50%
seek
Management by crisis vs. detailed
strategy
• However successful remanufacturers
show Adaptiveness, Openmindedness, Quick Decisions,
Relationship-based sales
Growing
• Demands strategic planning, tactical
decisions
• Demands coordinated management
• Demands investment which demands
accountability
Five Characteristics
Formal
Capital
Expertise
Planning
Intel Prop
Risk
Time of Entrepreneurial Period
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
Five Characteristics
Formal
Capital
Expertise
Planning
Intel Prop
Growth Requires
•
Upgrading resources
•
Skilled, experienced,
specialized training
•
Strategy
Risk
Time of Entrepreneurial Period
Formal Capital
Early
• No angels
• 66% or less than find capital > $50,000;
average is about $25k; not millions of
dollars
Five Characteristics
Formal
Capital
Expertise
Success requires
• Transition through growth stages
• Truly comprehensive changes in the
entrepreneur
• From start to finish, new attitudes and
new skills and roles
Planning
Intel Prop
Risk
Time of Entrepreneurial Period
Your Manufacturing Operation
Small Shop
( < 500 Carts/mo)
– People
– Sales
– Time
Medium Shop
–
–
–
–
–
( 500-2000 Carts/mo)
Materials
People
Sales
Time
Performance
• Sales
• Manufacturing
Operations
–
–
–
–
–
–
Materials
People
Sales
Time
Performance
Growth
Large Operations
–
–
–
–
–
–
–
–
( 2000-5000 Carts/mo)
( 5000-20,000 carts/mo)
Materials
People
Sales
Time
Performance
Growth
Quality
Management
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
The “present” is not relevant
Fact
PAST
CHANGE
Inference
FUTURE
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
Operations
• Production
• Equipment
Maintenance
• Rework
• Facilities
• Inventory
• H/R
• Production Scheduling
• Inventory Control
• Warehouse
management (Position
control)
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 mura -
waste
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.
Enterprise Tactics
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
Timing is now
• Remanufacturing is decades smarter
New Business / New Product Life Cycles
•
•
•
•
•
–
•
Development
Growth
Expansion
Maturity
Saturation
1986
1995
1999
Mono Laser
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 ANNUAL CARTRIDGE SALES
70.0
60.0
SALES IN MILLIONS OF UNITS
Total Cartridge Market
50.0
OEM Portion
40.0
rmfg
ttl. Mkt.
30.0
20.0
Remanufactured Cartridge Market
RM Portion
10.0
0.0
rmfg
ttl. Mkt.
~27%
1996
1997
1998
1999
2000
2001
2002
11.1
35.1
12.6
44.0
13.0
47.9
14.2
52.8
15.0
56.4
16.0
58.4
16.9
60.8
year
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.
US Market Color HP 4500 --- 4550 ---- 4600
HP
Series Color Market
1.2
Total HP4500
Cartridge
1.0
0.8
9500/3500/2003
0.6
4600/2002
4550/2000
0.4
0.2
0.0
Remanufactured Color Cartridges
4500/1998
1
2
3
4
5
6
7
Series1
0.0
0.0
0.1
0.1
0.1
0.1
0.1
Series2
0.0
0.8
1.1
1.0
0.9
0.7
0.6
Introduction
Growth
Maturity
2 years
2 years
2 years.
Production Mode 1000/mo. -- Key Statistics
TRUE COST
dpc >>
updated 2/00
Customer Model
Laser Bob
Yr/Ave
EX
PX
4000
WX
VX
8100
2100
AX
SX
NX
$33.82
$33.86
$63.33
$55.59
$40.44
$85.50
$45.33
$41.41
$19.82
$33.25
23.80%
5.90%
13.00%
8.70%
6.00%
0.90%
1.00%
10.00%
9.20%
5.9%
Cart/Mo.
EX
PX
4000
WX
VX
8100
2100
AX
SX
NX
1000
238
59
130
87
60
9
10
100
92
59
$8,048
$1,998
$8,233
$4,837
$2,426
$770
$453
$4,141
$1,823
$1,962
$7.34
$8.20
QPA(AVE)
OPC
0.95
$11.67
$12.45
$20.10
$18.06
$12.23
$22.90
$17.10
$12.10
PCR
0.31
$7.01
$3.25
$3.20
$7.25
$3.20
$3.90
$2.80
$3.60
Cblade
0.80
$3.19
$2.39
$3.10
$5.70
$2.29
$4.65
$3.25
$4.85
$1.85
$3.19
Sweeper
0.78
$0.26
$0.25
$0.32
$0.22
$0.25
$0.21
$0.25
$0.24
$0.36
$0.23
Dblade
0.42
$4.18
$2.65
$3.10
$4.67
$2.32
$5.32
$2.56
$2.65
Toner
1.00
$7.29
$4.80
$12.50
$16.20
$5.69
$18.67
$5.30
$4.50
$4.54
$10.45
Seal
1.00
$0.79
$0.65
$0.90
$0.83
$0.80
$0.87
$0.87
$0.73
$0.34
$0.42
Mbush
0.38
$0.25
$0.25
$0.22
$0.22
Box
1.00
$0.55
$0.48
$0.60
$0.75
$0.52
$0.77
$0.63
$0.48
$0.67
$0.72
Bag
1.00
$0.15
$0.15
$0.15
$0.28
$0.15
$0.30
$0.15
$0.17
$0.15
$0.21
Rocker
1.00
$0.53
$0.52
$0.36
$0.89
$0.47
$0.90
$0.32
$0.55
$0.46
$0.64
Empty
1.00
$2.00
$6.20
$17.25
$4.50
$12.40
$27.00
$12.00
$11.90
$1.00
$1.55
Labor
1.00
$3.28
$3.43
$4.50
$4.20
$3.54
$4.40
$3.67
$3.76
$2.98
$3.77
Ship
1.00
$0.30
$0.25
$0.45
$0.45
$0.29
$0.45
$0.30
$0.25
$0.25
$0.29
QPA'd SUBTotal
43.7
$32.76
$32.54
$60.83
$54.38
$39.47
$82.64
$44.22
$40.23
$19.21
$31.18
Inventory(6turns)
$0.943
$1.252
$2.356
$1.127
$0.915
$2.638
$0.674
$1.146
$0.602
$2.046
Rework/cart
$0.12
$0.08
$0.15
$0.08
$0.05
$0.22
$0.43
$0.04
$0.01
$0.02
12.00%
7.50%
11.00%
6.70%
5.00%
17.00%
39.00%
3.20%
1.00%
2.10%
29
4
14
6
3
2
4
3
1
1
$28.10
$4.55
$19.31
$7.34
$3.19
$2.02
$4.29
$3.61
$0.82
$1.40
Rework % 10.45%
No. RW
CostEng/mo.
$0.49
$0.52
$3.20
$3.66
Process Developments for Planned
Improvement at Critical Process Points
•
•
•
•
•
•
•
•
SX
NX
EX
4000
Pocket carts
WX
4000
4500
Corona Wires
Developer sleeve / PCR’s
Toner/OPC
Developer sleeve / blade
OPC’s / Seals / PCR’s
Developer Sleeve Sys / Toner
Toner / Developer Sleeves
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
First and Foremost
•
•
•
•
•
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
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 Production
Transition
• 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)
Diagram and Document
Planned new
material,
remove waste
Inspect &
Stage
Empties..
Disassembly
& Cleaning &
Seal
Assemble
Remove reject
material
Test & await
packaging
Empties
Generic Cell
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
Production Layouts
Component Cleaning and Prep
area
 PCR  OPC 
Hopper Split &
Prep
Corona
Production
REWORK
Final Test Printing Area
Materials cart
Hopper
Clean
Sealing
Box Tape & Sort
Disasse
m.
Waste
Waste Bin
Bin
Clean.
Assm..
2000 square feet
Filling
Hopper
Reassemble
FINAL
Specialty Reman Cell
Tear-down / Evacuation
Ship Dock Area
Incoming Dock Area
Assem
b.
Labeling / Bagging /
Packaging Area
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:
Production SPC
Canon Cartridge Reman Eff
460
440
Carts
420
400
Per Day
380
360
340
320
300
1 2/ 21 / 98
2/ 9/ 99
3/ 31 / 99
5/ 20/ 99
7/ 9/ 99
8/ 28/ 99
Date
1 0/ 1 7/ 99
1 2/ 6/ 99
1 / 25/ 00
3/ 1 5/ 00
5/ 4/ 00
Production SPC
Cartridges Produced (per man per hour)
3.70
3.50
Cart/Man/hr
3.30
3.10
Per/LW
2.90
2.70
2.50
12/21/98
2/9/99
3/31/99
5/20/99
7/9/99
8/28/99
Date
10/17/99
12/6/99
1/25/00
3/15/00
5/4/00
Production SPC
25
371
406
396
393
439
366
400
379
402
2.91
3.18
3.11
3.09
3.44
2.87
3.14
2.97
3.16
SX
NX
Grand
Rate
9486
7106
114534
3.08
2/23/00
2/24/00
2/25/00
2/28/00
2/29/00
3/1/00
3/2/00
3/3/00
3/6/00
132
60
32
20
19
6
7
58
22
15
127
70
46
35
15
8
5
58
14
27
125
61
46
38
18
8
5
54
14
29
137
63
51
23
13
6
7
37
40
17
138
67
43
32
12
6
7
58
41
35
128
66
36
26
26
11
7
18
22
26
136
64
50
26
22
4
6
46
28
20
126
70
34
22
21
6
9
27
36
27
127
65
38
30
20
7
5
42
44
Totals
Days
EX
PX
4000
WX
VX
8100
2100
AX
291
2474
$6.75
$1.53
38468
18436
12128
7657
6535
1892
1898
10930
Hours
Ave/hr
Fringe
Line workers
15
Payroll/Line
Overhead
Utilities
$307,292
$120,000
$4,500
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