Elg lgi i Rub ubber ber Com ompany pany La Larry y Wh Whit - PowerPoint PPT Presentation

Elg lgi i Rub ubber ber Com ompany pany La Larry y Wh Whit ite e – Retr trea ead d Prog ogram am Ma Mana nager er

Get the “MOST” from your Retread Pl Plant nt

Econom onomy y of of Scale ale • As we all know – VOLUME can make a HUGE difference in the operating results of a retread plant. • Increasing the volume flowing through a plant aids in many tangible ways: • Most obviously – more direct income • Better scheduling opportunities • Ease process flow – managing “work in Progress” to reduce “start / stop” of activities • Spreads your “fixed costs” over a larger volume of casings – can actually ‘reduce’ your prices and exponentialy increase your volume.

Econom onomy y of of Scale ale HOWEVER Volume can ”Hide” a lot of operating “lost opportunities ”

Foc ocus us on on Reducing ducing Co Cost sts s in in You our r Retr tread ead Pl Plant nt !

Retreading ‘CAN’ be a very lucrative business! • My focus will be on helping you REDUCE the Variable costs in your Retreading operation. • Focusing on: • Labor cost (Productivity) • Cost of Consumables • Cost of Energy (and some additional hints!) Remember – every Rupee that you ‘save’ goes right to your pocket!

Co Cost t of Labor! bor! • Many consider Labor cost to be a “fixed” cost! • But considering differing levels of “Productivity” we can really see Labor as a “Variable Cost” … one that can make a huge difference in your financial results! • In the next few slides I am going to talk about: • What is Productivity? How is it measured? • Show some real examples and impacts. • Discuss how to “improve” your productivity.

Pr Produc ducti tivi vity ty • Refers to the finished output of your Retread Operators over a given period of time. • There are many ways to measure, though my preference is: • Finished Tires / Man hour worked. • In my experience here in India a “typical”, reasonably modern Retread shop has an operating Productivity of ~ 0.8 Tires / Man hour. (* operators within the process) • Lets see what this means in terms of Cost and what even some small changes would make!

Productivity cont’d Lets consider a Retread Plant producing 600 tires per month (7,200 / yr). • Employee Total cost to Company – 22,000 Rupees / month ( Employee of 5-10 years experience, trained on multiple work posts.) • Over a typical year at this plant …. cost of labor at : 0.6 Productivity = R 15,00,000 Now – lets see the impact of even some small productivity improvements!

Productivity cont’d Remember @ 0.6 = R 15,00,000 • Productivity 0.8 = R 11,25,000 (savings of R 3,75,000) • Productivity 1.0 = R 9,00,000 (savings of R 2,25,000) • Productivity 1.2 = R 7,50,000 (savings of R 1,50,000) And even better is possible! … so who wouldn’t want to add these savings directly to the bottom line? • OK ….. Is that realistic at my plant and how do I get there?

Productivity cont’d Productivity is principally dependent on 4 key factors!  Machines  Capable Supervision / Leadership  Operators  Organization Lets explore each of these factors!

Productivity cont’d Machines: • Must be in good working condition – within original operating specifications – good preventative and corrective maintenance. • Most reasonably modern machines are capable of at least: • Buffer = 12 casings per hour • Builder = 10 casings per hour • With these machines the productivity is definitely possible!

Productivity cont’d Capable Supervision / Leadership • Need to know the cycle time of the principle work stations. (assuming casing availability and operators functioning at pace 100) • Initial inspection = 4 min (15 / hour) • Buffer = 5 min (12 / hour) • Builder = 6 min (10 / hour) assuming separate tread preparation • Final inspection = 3 min (20 hour) With this basic information a good supervisor / leader can really begin to better organize the work.

Productivity cont’d Operators • Working to standard / pace 100 / achieving cycle times. • If NOT – Why not? • Capable but Not achieving -- Why? • Machines? / Organization? Availability of casings? • Not Capable – Why? • Training? • Polyvalence / Cross training – Very important to address bottlenecks / absences / etc.

Productivity cont’d Organization • With Machines / Operators functioning as appropriate, organization of the work and process flow becomes critical for the Supervisor / Leader to achieve good Productivity. • Knowing the volume required --- Establish the “Tread Builder” as the “Heartbeat” of the plant. • All other work posts are focused on ensuring casings are available at the Builder.

Productivity cont’d Organization • With Cycle times correct and volume requirements known – it is easy to determine how many hours are required at each of the work stations. Examples: • 600 / month ~ 28 / day (one shift) • Initial Inspection +20% Rejection rate ~ 2.5 hours (max) • Buffing ~ 3 hours (max) • Building ~ 3 hours (max) • Final Inspection ~ 1.5 hours (max)

Productivity cont’d Organization • The leader can take action to address temporary bottlenecks that arise…. Examples • Have the buffer select ‘clean’ casings that can go through the process without skiving or repair. • Know which operators can be temporarily reassigned without negatively affecting the flow.

Productivity cont’d Addressing each of these key factors: (Machines / Leadership / Operators / Organization) Will step by step improve the productivity of your Retread plant. To be realistic, it will not happen overnight….. BUT ….. All of this is at NO ADDITIONAL COST !

Co Cost t of Co Consuma sumables es • The Highest Cost Consumable (on a “per cure” bases) within a typical Retread operation is the: Envelope • Followed by the: Buffer Blades Lets examine “How to get the Best out of these Products”

Maximi ximize e the e life e of your r envelo lopes! pes! • Start by purchasing high quality Envelopes! • The temporary ‘pain’ of the cost of a high quality envelope will quickly be outweighed by the Savings. • Make sure that you have ‘enough’ envelopes in each dimension you need – sufficient to allow the envelope to cool before using again. • Ensure that they are properly sized for your application.

Maximiz imize e the life of your ur envelo elopes! pes! • Ensure sufficient storage space for cooling. • Stored flat, area free of dirt and debris, allowing air circulation. • Adequate use of Envelope Lube. • Routine Inspection and minor repairs using approved materials and methods. • When using an Enveloper – ensure operators do not ‘overstretch’.

Maximiz imize e the life of your ur envelo elopes! pes! • De-enveloping should be done when it is still hot. • When using sealing systems like Rims – frequently examine the materials for sharp edges that could snag. • When installing valves – do not ‘overtighten’. • As Envelopes ‘grow’ in size – move them up to a larger tire and mark them as such. • Always follow Manufacturer’s recommendations for envelope fitment.

Buffing ing Blades ades • Ensure your Buffer is well maintained and operating within the Manufacturer’s specs and tolerances. • Ensure exhaust ducting and water misting injection is functioning appropriately. • Purchase only high quality buffing blades! • Again the savings will outweigh the initial higher cost. • Follow Manufacturer’s guidelines for your specific application and Buffer.

Buffing ing Blade des • Ensure all pebbles and foreign materials are removed from the casing before buffing. • Choose an optimum depth and speed of cut (to ensure appropriate surface texture and blade life). • Flip the buffer blade assembly at approximately ½ life. • Avoid buffing into steel belted cables – Use of a Buffer with an automatic Under Tread Measuring Device is recommended.

Buffing ing Blade des • If your buffer is not equipped with an UMD (Undertread Measuring Device) consider purchasing a separate hand held unit. • The ‘depth of undertread’ is very important. • Will eliminate the need for “pilot skives”. • Regularly examine the ‘used’ blades to determine: • If teeth are being broken? • If the full life of the blades is being used?

Co Cost st of En Ener ergy gy (and nts) ! nd so some e additional ditional hints) • Cost of Electricity (power grid / generator) can be Brutal! • Every cut or electrical saving you can make is important. • Some ideas to consider or verify: • Minimal time with the Autoclave door open – it has taken a lot of energy to heat – every minute the door is open – it looses heat that you will have to reinvest. • Machines running when not directly in use. • Air Leaks are notorious in a Retread Plant – compressor running when not necessary.