when to reinvest in the plant floor - · pdf fileinoculation shotblast warehousing ......
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Patricio GilChief Executive OfficerBlackhawk de México
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
When to Reinvest in the Plant Floor
• Increase of Production Capacity• New Products or Markets• Product or Process Innovation• Cost Reduction Initiatives• Process Control• Automation• Environmental & Safety
Reinvesting in the plant floor:
Direct relationship with the current Business Strategy
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
From the Investor’s Perspective:
Return OnInvestment
Profit
Investment
Profit
Sales
Sales
Investment
% Profitability Turnover
How much we are earning per unit
How many units we are selling per year
Making it simple:
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Where to invest?
Return OnInvestment
Profit
InvestmentMinimize Investment
Increase Profit
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Production Equipment
CoreMachines
MeltingFurnace
MoldingLine
Finishing
“Add Value or Transform the Product”
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Support Equipment
CoreMachines
MeltingFurnace
MoldingLine
Finishing
“Interphase Between Equipment”
Sand Mixer
Sand Silos
ResinAddition
Sand Mixer
Sand Silos
Sand Transportation
BondAddition
Shake Out
Sand Cooler
Scrap Charger
AlloyAdditon
Ladles
Crane Monorail
Core Storage and transportation
Inoculation Shotblast
Warehousing
Forklift
Containers
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Control Equipment
CoreMachines
MeltingFurnace
MoldingLine
Finishing
“Process Variables: Monitoring and Control”
Sand Mixer
Sand Silos
ResinAddition
Sand Mixer
Sand Silos
Sand Transportation
BondAddition
Shake Out
Sand Cooler
Scrap Charger
AlloyAdditon
Ladles
Crane Monorail
Core Storage and transportation
Inoculation Shotblast
Warehousing
Forklift
ContainersCore Lab
MetallurgyLab
Sand Lab
PouringTemperature
Layout and Physical Test
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Environmental
CoreMachines
MeltingFurnace
MoldingLine
Finishing
“Environmental Protection and Law Compliance”
Sand Mixer
Sand Silos
ResinAddition
Sand Mixer
Sand Silos
Sand Transportation
BondAddition
Shake Out
Sand Cooler
Scrap Charger
AlloyAdditon
Ladles
Crane Monorail
Core Storage and transportation
Inoculation Shotblast
Warehousing
Forklift
ContainersCore Lab
MetallurgyLab
Sand Lab
PouringTemperature
Layout and Physical Test
Gas Scrubber Dust
Collector
Fumes Collector
Building
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
People:
CoreMachines
MeltingFurnace
MoldingLine
Finishing
“Safe Working Environment and Law Compliance”
Sand Mixer
Sand Silos
ResinAddition
Sand Mixer
Sand Silos
Sand Transportation
BondAddition
Shake Out
Sand Cooler
Scrap Charger
AlloyAdditon
Ladles
Crane Monorail
Core Storage and transportation
Inoculation Shotblast
Warehousing
Forklift
ContainersCore Lab
MetallurgyLab
Sand Lab
PouringTemperature
Layout and Physical Test
Gas Scrubber Dust
Collector
Fumes Collector
SafetyEquipment
Building
Lockers Restrooms Cantina
Offices
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Utilities:
CoreMachines
MeltingFurnace
MoldingLine
Finishing
“Services Required to Operate”
Sand Mixer
Sand Silos
ResinAddition
Sand Mixer
Sand Silos
Sand Transportation
BondAddition
Shake Out
Sand Cooler
Scrap Charger
AlloyAdditon
Ladles
Crane Monorail
Core Storage and transportation
Inoculation Shotblast
Warehousing
Forklift
ContainersCore Lab
MetallurgyLab
Sand Lab
PouringTemperature
Layout and Physical Test
Gas Scrubber Dust
Collector
Fumes Collector
SafetyEquipment
Building
Lockers Restrooms Cantina
Offices
Sub Station
Compressed Air
Gas WaterWaste
DisposalPatricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Where to invest?
What are the customer’s requirements?
What is the customer currently receiving from others?
How can we differentiate from others?
Market Perspective
Grades of metal, tolerances, volumes, casting sizes and weights
Delivery times, pattern costs, value added operations, communication
Just in time deliveries, machined castings, improve casting design, prototyping
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Where to invest?
What is the condition of the current equipment?
Where are the capacity bottle necks?
Where are the opportunities for automation?
Are we operating within the environmental and labor law
Operations Perspective
Up time records, consistency, spare parts availability, general condition
What is the first, second, third bottle neck and cost to resolve it
Manual operations, cycle time improvement, quality improvement
Noise, emissions, safety, energy usage
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
How to prioritize?
We will always have more needs than money
Emergency Situations
Improve Process Capability
Increase Capacity
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Critical Decisions: Molding Line (iron)
- Casting Volume +
-C
asti
ng
Wei
ght
+ No BakeTight flask
Cope & Drag
FlasklessMatch Plate
Vertical
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Automation Drivers:
- Cost reduction- Process Control- Quality Improvement- Safety
Critical Decisions: Automation
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Critical Decisions: Automation
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Critical Decisions: Automation
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Critical Decisions: Automation
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Double equipment to increase plant reliability
Critical Decisions: Redundancy
Identify the equipment that may shut down the plant:
- Completely
- Partially
- Does not affect for a period of time
Furnace, molding line, magnet, crane, monorail, substation transformers, transfer ladle, pouring ladle, spectrometer,
Air compressor, shot blasting machine, grinder, dust collector
Core machine, CMM, hardness tester, forklift
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Critical Decisions: Redundancy
Small equipment may shut down the plant
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
- Just the minimum to comply with the law
- Internal Company values and beliefs
Critical Decisions: Environmental & Safety
The environmental and safety regulations may significantly affect the competitiveness of a region.
Company Policy:
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Critical Decisions: Environmental & Safety
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Critical Decisions: Environmental & Safety
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Critical Decisions: Environmental & Safety
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Common Obstacles:
- No resources are assigned for it- We expect the people operating to do the
innovation- Our operation culture does not allow mistakes
Critical Decisions: Innovation
An Innovation Strategy should be supported with resources, people focused on it, and the acceptance of making mistakes and run risks; otherwise it is only process improvement.
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Business Strategy defines investment decisions
Investment options always compete for resources
Resources are always limited
Priorities: Emergencies – Process Control – Growth
Conclusion
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016
Thank You!
Patricio Gil
Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016