AC Compressor
Challenges:
- Production capacity constrained by rework requirements
- Complex, difficult machining & assembly
- Poor in-plant Quality
Achievements:
- Market expansion due to increased production capacity
- Reduced machining & assembly complexity and improved quality
- Total Annual Savings: $2.4M
- Return on Investment of $2M in 9.8 months
Commercial Valve Manufacturer
Challenges:
- Urgent market need – current technology not robust enough
- Delicate, complex, difficult assembly
- Frequent failures (leakage) in the field and very costly to correct
Achievements:
- Return on Investment of $400,000 in 6.3 months
- Field failures dramatically reduced
- Market expansion due to lower price and higher quality
- Reduced complexity of the product design and improved quality
- Reduced part count 62%
- Reduced number of operations 73%
- Reduced labor cost 70%
- Reduced material cost 63%
- Reduced Cost of Quality 65%
- Reduced total product cost 67%
Gas Heat Exchanger – Commercial AC
Challenges:
- Complex, difficult assembly leading to costly in-plant corrections
- Poor in-plant Quality – very costly to correct
Achievements:
- Major cuts in part and labor costs while improving quality due to simplified design
- Total Annual Savings: $3,500,000
- Reduced complexity of the product design and improved Quality
- Reduced part count 38%
- Reduced number of operations 44%
- Reduced labor cost 46%
- Reduced material cost 32%
- Reduced Cost of Quality 16%
- Reduced total product cost 33%
- Return on Investment of $2.2M in 7.7 months
Oil Tools – Safety Valve for Well Head
Challenges:
- Frequent failures of delicate, complex valve in the field – very costly to correct
- Delicate, complex, difficult assembly
- Urgent market need – technology too expensive
Achievements:
- Simplified product design led to improved Quality and increased robustness
- Dramatic reduction in field failure rate drove significant Market expansion
- Reduced complexity of the product design and improved Quality
- Reduced part count 62%
- Reduced number of operations 73%
- Reduced labor cost 70%
- Reduced material cost 63%
- Reduced Cost of Quality 65%
- Reduced total product cost 67%
- Payback on $400,000 NRE in 6.3 months
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