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Strategies for Laser Printer Cartridge Manufacturing Recharger Magazine Expo 2004 Session S70Wednesday 1:00-2:30pm Mark Hibbard Washington County Community.

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Presentation on theme: "Strategies for Laser Printer Cartridge Manufacturing Recharger Magazine Expo 2004 Session S70Wednesday 1:00-2:30pm Mark Hibbard Washington County Community."— Presentation transcript:

1 Strategies for Laser Printer Cartridge Manufacturing Recharger Magazine Expo 2004 Session S70Wednesday 1:00-2:30pm Mark Hibbard Washington County Community College

2 Remanufacturers as Entrepreneurs Five Characteristics of Entrepreneurial Growth Company (EGC) Entrepreneurial Growth (Time) Process that leads up to looking for modification of production floor, including process control, process modification, or redesign

3 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

4 Intellectual Property Earliest Stages: Remanufacturers create solutions.. Improvisation, creativity is maximized 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

5 Planning Beginning Stages: ……………….. seek resources –Research & Development = 14% –Business planning = 33% –Financial help = 50% Management by crisis vs. detailed strategy However successful remanufacturers show Adaptiveness, Open- mindedness, Quick Decisions, Relationship-based sales Growing Demands strategic planning, tactical decisions Demands coordinated management Demands investment which demands accountability

6 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 Growth Requires Upgrading resources Skilled, experienced, specialized training Strategy

7 Formal Capital Early No angels 66% or less than find capital > $50,000; average is about $25k; not millions of dollars Success requires Transition through growth stages Truly comprehensive changes in the entrepreneur From start to finish, new attitudes and new skills and roles

8 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 ( 2000-5000 Carts/mo) –Materials –People –Sales –Time –Performance –Growth Large Operations ( 5000-20,000 carts/mo) –Materials –People –Sales –Time –Performance –Growth –Quality –Management

9 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

10 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

11 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

12 The present is not relevant A Basic Model of Change CHANGE PASTFUTURE Fact Inference

13 Managing = Manufacturing A managers product is >>> action. A managers raw material is >> information. Analysis and Synthesis are a part of the managers assembly line.

14 Operations Production Equipment Maintenance Rework Facilities Inventory H/R Inbound Logistics Receiving / Inspection 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 Share Knowledge. Identify Best Practices. Build Institutional Processes. Attract Best People. Create Training Courses. Communicate Consistent and Coherent Messages to Customers and Employees. Cultivate

15 Lean Objectives Anything that adds COST to the product without adding VALUE muda - waste mura - 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 matls,parts in process, or finished goods.

16 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 RMs look at floor layout, capital equip, test equip, new components, and other singular objective to improve operations … Not that easy.

17 Enterprise Tactics Customer Needs New and Current Products/Service Performance Priorities and Requirements Quality, Dependability, Service Speed, Flexibility, and Price Operations & Supplier Capabilities TechnologyPeopleSystemsR&DTrainingMaterialsQualityDistribution IT & Support Platforms Financial Management Human Resource ManagementInformation Management Enterprise Activities & Capabilities Enterprise Planning Strategy

18 Timing is now Remanufacturing is decades smarter New Business / New Product Life Cycles Development1986 Growth1995 Expansion 1999 Maturity Mono Laser Saturation Mono Laser – Development – Color2002 Growth-- Mono – ripe for lean technique as color goes into the growth Decline

19 US Market Monochrome Laser Printer (CAP Ventures 2000) Total Cartridge Market Remanufactured Cartridge Market ~27% OEM Portion RM Portion

20 Opportunity Placement 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. Color opportunity to model new process ideas

21 US Market Color HP 4500 --- 4550 ---- 4600 Total HP4500 Cartridge Remanufactured Color Cartridges Growth 2 years Maturity 2 years. Introduction 2 years 4500/1998 4550/2000 4600/2002 9500/3500/2003

22 Production Mode 1000/mo. -- Key Statistics

23 Process Developments for Planned Improvement at Critical Process Points SXCorona Wires NXDeveloper sleeve / PCRs EXToner/OPC 4000Developer sleeve / blade Pocket cartsOPCs / Seals / PCRs WXDeveloper Sleeve Sys / Toner 4000Toner / Developer Sleeves 4500 Toner / Seals / Rollers

24 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

25 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

26 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

27 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 –Whos waiting –Check your plan

28 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)

29 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

30 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

31 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

32 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

33 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)

34 Generic Cell Empties Empties.. Disassembly & Cleaning & Seal Test & await packaging Remove reject material Assemble Inspect & Stage Planned new material, remove waste Diagram and Document uS Visio – has great layout tools and documentation features

35 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 RMs have non English Speaking Staff (ESL)

36 Assess each work function - REGULARLY Map mini processes –document –training guidelines –WORK TimingIE 101 Mini production for some work function –Skill assessment –Time Realistic training goals –Critical for process control –No job is more important

37 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

38 2000 square feet Materials cart Tear-down / Evacuation Final Test Printing Area Component Cleaning and Prep area Storage Area Empties Prep Area / Recycling / Sorting Incoming Dock Area I OPCI PCRI Corona Box Tape & Sort Production REWORK Hopper Split & Prep Labeling / Bagging / Packaging Area Disasse m. Waste Bin Clean. Waste Bin Assm.. Hopper Clean SealingFilling Hopper Reassemble FINAL Assem b. Specialty Reman Cell Ship Dock Area Production Layouts

39 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

40 Critical Path -- Toner - OPCs -- etc. Toner Placement/Storage: Bulk purchased.. $$$ mark/label all position, track mass flow, bottling?, Filling, Cleanouts? Protect from Temp/Humidity Fluctuations OPCs – Lightsafe, Clean Dry Magnets/Sleeves - Clink Clink PCRs – 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:

41 Production SPC



44 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

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