but all the fans were in place within four months. Our departmental credibility went up a notch in the eyes of the workers.
2.Electricity Supply
There were budget overruns, as the transformers and circuit breakers cost nearly 30% over the estimate. This had to be offset by savings elsewhere. On the plus side, the value of production lost due to electricity supply problems went down by nearly 80%. The benefit-to-cost ratio was 5.5:1.
The power factor capacitor banks and their control systems were very effective. The reduction in electricity bills was better than estimated, and the benefit-to-cost ratio was 6:1.
3.Air Supply
We installed pressure recorders at key points in the three factory buildings. The charts showed that after installing the air receivers, the pressure fluctuations were minimal and well within acceptable limits.
Once the new cooling towers were connected, more than 95% of entrained water was trapped at the supply end. A small quantity was drained from the air receivers, but there was no water to be drained from the low point drains on the air mains any longer. The saw-tooth pipeline design described earlier was abandoned whenever new air lines were laid.
Production loss due to air supply or quality problems all but disappeared once all the new facilities were installed. Computing the benefit-to-cost ratio proved difficult, as there were questions about the number of compressors to be included in the cost figure. The range was 11:1 to 16:1, depending on the cost figure selected.
4.Water Supply
Laying the new water mains proved very time consuming, as the municipality had complex and slow tendering processes for procuring and laying the pipe. There were city streets to be crossed; this required coordination with other city departments and utility companies. Eventually it was completed after about 30 months.
We made better progress with the additional bore wells, about half of which turned out dry while the rest yielded varying amounts.
Meanwhile, the demand was rising continuously. These two projects helped us to meet the demand, but there was no doubt that the problems would worsen in future. We did not compute a benefit-to-cost ratio as it was a survival and welfare issue.
5.Dust and Fume Pollution
The ceramics departments used to be in a permanent dust haze before we installed the new cyclones and larger extractor fans. The haze cleared visibly and quickly, so the workers were happy. But there was an attractive spin-off as well. Most of the ceramic dust recovered from the cyclones could be reused, allowing a small production volume increase and cost savings. What started off as a welfare/health project gave a benefit-to-cost ratio of 2.5:1.
The new fume extraction hoods and fans in the plating department worked well from the beginning. The number of workers reporting sick dropped significantly, so we felt quite pleased with the results.
6.Security of Energy Supply to the Canteen
The solar water heater panel project produced dramatic results. The canteen people were relieved from the tension that prevailed earlier. They could go about their work calmly and with less anxiety. The savings in electrical energy paid for the project within eight months, which was a bonus.
3.5 Lessons
When management gurus talk about vision, mission, and objectives, we may find our eyes glazing over. However, this experience taught me that the gurus are quite right. A systematic approach allows us to objectively evaluate what needs to be done and why.
As engineers, we do not always think in commercial terms; technical excellence is what most of us find appealing. Without an effort to do a cost-benefit analysis, I suspect these projects would have been shot down. When the benefit is 250% of cost (in some cases it was over 1000% of cost), it is easy to convince management. Funds suddenly become available to maintainers and engineers, instead of the much-favored Production and IT departments.
We found that shop floor workers can be quite realistic in their expectations. When it comes to recognizing infrastructure weaknesses, their inputs are often quite useful. Visible feedback that they can see through our actions helps build trust and confidence. Shop-floor staff helped identify the main weaknesses during the two-week review period, not outside consultants. The items they highlighted proved valuable, as all of them had excellent economic or HSE benefits.
That the boss is an important customer is not in question; not recognizing this can be career limiting! However, we should pay heed to the other customers as well, and include their ideas in our plans.
Expectations should be vetted to ensure that they add value and are manageable within existing cost constraints. Only those projects that pass the hurdles should be used to formulate the plan.
3.6 Principles
1.Deciding a line of action pro-actively is distinctly superior to playing catch-up. The vision and the current status give us the means to do a gap analysis and set our objectives.
2.Knowing the customer’s expectations is important, whether these are from management or the shop floor. Asking them directly is better than making assumptions.
1 For this chapter and all subsequent chapters, see Chapter 2 for additional information about location.
... why customer expectations matter
Energy is the essence of life. Every day you decide how you’re going to use it by knowing what you want and what it takes to reach that goal, and by maintaining focus.
Oprah Winfrey, Talk Show Host
Author: V. Narayan
Location: 2.1.2 Automobile Parts Manufacturer
4.1 Background
The company designed and built many of the special purpose machine tools (SPMs) they needed for manufacturing their product range. This work was done by a separate division that had a design office, a large machine shop, and an assembly department. The design group was in close contact with the production and process planning departments. Castings and forgings required for these SPMs were made by third-party vendors to the company’s specifications and rigorous quality standards. The 500 odd staff in this division occupied one building, approximately 60,000 square feet in area.
The company had a principal in Europe and affiliates around the world, making a similar range of products. The company’s European principal decided that SPMs made in this plant were of comparable quality to those made in their European factory. They made a policy decision to increase SPM production in this plant with orders from affiliates being executed here, once additional capacity was established.
The SPM manufacturing, assembly, and testing areas had to be increased significantly. Additional machine tools were required along with overhead cranes, packing and dispatch bays, and a small increase in office space for a larger design group.
Demand for the company’s main product range of fuel injection
