Data Center Overhaul
Schlumberger of Canada, Calgary Head Office
Data Center’s process consisted of receiving data via modem, and saving the data on tape. Data would be processed on the computers, and a film ‘log’ of the results was produced. This film would then be ‘printed’ on “blueline paper” similar to the type used by architects for house plans, only 8” wide and fan-folded so any length could be run.
Problems were abundant at the data center, the equipment was very old, slow and prone to failure. The centre’s condition had deteriorated from a lack of attention, and the wear was visibly obvious.
The Data Center was receiving 3 to 4 complaints per day for every 7 to 8 data transmissions. This amount was unacceptable by the company.
Specific Problem areas included:
- Computers that data was received on were beyond their life and very failure prone.
- Film developer ( we only had one) was overworked for what it was designed for and was in need of frequent repair.
- Printers were made for field use, and hence not able to withstand the volume of work that they had to do. They too required very high maintenance and often failed at critical times.
To solve the problems we brought in new systems and the old computers were given to DEC in return for future considerations like, free maintenance on the new systems.
Dupont provided new film developers with an agreement that if we used their film exclusively the developers would be free. This was a solution that worked well because the plant already used Dupont film.
Two new film printers were brought in from a closing Schlumberger commercial print center. The cost per unit was almost free because we refurbished each unit prior to installation.
As a result of our work complaints were reduced to 1 to 2 per month and 3 to 5 positive testimonials per month were received. While we succeeded in vastly improving employee moral and dramatically reducing the cost of repairs, the dollar savings were much less significant than the good will generated through the virtual elimination of customer complaints.
Warranty Solution
Northern Telecom
The Northern Telecom Norstar plant was in trouble. It was running at a loss and close to being closed for poor performance.
One of the plant’s problems was that the warranty costs of the equipment were much greater than actual failure rates would suggest was appropriate.
This was caused when a Telephone company would return equipment to the Norstar plant that was not broken. The equipment was a simple removal when an end customer discontinued service and the Telephone company removed the equipment.
In many cases, Northern Telecom accepted charges for repairing fully functional equipment. Prior to re-installing the equipment, the Telephone company sent it in to Nortel R&O (repair and overhaul) for refurbishing, which was completed under the warranty. R&O was a separate division of Nortel, and they routinely billed the plant rather than the customer when they had no reason not to.
To solve the problem we negotiated with R&O a flat rate for repairs on the sale of each piece of equipment based on the failure rate of that equipment. This was quite a selling job – one that required us to prove repair rates through stacks of historical documentation.
We then created a program to teach the Telephone companies how to refurbish on their own. This required specific test equipment. We created a ‘test kit’ that contained proprietary hardware specifically designed to test the phones as well as writing the test software, which we bundled as an orderable item.
It was also necessary to provide parts to the Telco – something that Nortel had never done before. Eventually, it was done on a trial basis. Handsets, documentation kits, boxes, and even plastics were made available.
As a result of our work the first year savings of $2MM resulting in plant profit of $50K – the first profit ever for that plant. Properly documenting all transactional and process data kept the Norstar Plant in operation.
There was immense buy-in by the Telephone companies to our training program. And sales increased, for example: GTE (Lexington KY) increased their sales by $25MM the first year.
Automation of roll handling
Hood Packaging Corporation
Hoods Bontite™ product was produced in jumbo rolls that were 63” wide and about 60,000 feet long. Finished rolls were 31 1/2” wide and either 6300’ or 8000’ long, depending on the customer. Finished rolls weighed anywhere from 120 kg to 150 kg each and had to be stacked on a pallet. They were produced on a slitter that produced the rolls to length and of the right width, but nothing on the market was designed for handling rolls of this size and stacking them on a pallet.
A second operator was stationed at the slitter to
take the rolls off the machine using an electric hoist. This slowed the slitter to an 8 minute cycle time, and required two people to operate.
To solve the problem a robotic assembly was designed to do the work of the second operator, taking the rolls off the machine and stacking them on the pallet. The cost was just over $40K for the hardware, and another $20K for design and installation.
As a result of our work the machine was reduced to one operator, a savings of 4 people (because of the high demand, the slitter was running on a 4 shift schedule) and saw an improvement of the cycle times to under 5 minutes. Labour was reduced by a staggering 68% providing a payback in less than 3 months. The employees that were hired to operate the hoist were then assigned to other areas of the plant where they were more needed, but because of the general shortage of labour, the positions could not be filled.
Installation of automated paper unwind stand
Hood Packaging Corporation
Splicing one roll of paper that is about to run out to a fresh roll when the web speed is 325 meters/minute is not for the faint of heart. A missed splice at that speed will send paper shooting up into the rafters, and because the extruder is still pouring out polyethylene, it coats the rollers with molten poly. Cleanup can take hours, so that even with a 95% splice efficiency, that still would mean over a web break a day. The costs were so high, that the operators slowed the machine and made the splice a low speed. The waste associated with this was in excess of 6%, but that was less expensive than the alternative.
To solve the problem we sourced an automated unwind stand from Europe. Capabilities were examined, redesign of the unwind to accommodate our paper type was done, and a machine could be purchased for just under $1MM installed.
To allow the two weeks necessary for the install, Bontite™ was run on a second machine, and through streamlining of the schedule, and minimizing changeovers by running multiple orders together, enough floor stock was created to allow for the shutdown.
As a result of our work the waste was reduced to just over 1% which resulted in annual savings in excess of $1.3MM representing a 9 month payback.
In addition, quality problems associated with splicing at low speed were eliminated, resulting in fewer customer complaints.
