Right First Time

Situation: Bad parts detected by operators/ inspectors.
Problem: Several substandard parts produced before issue detected resulting in increased WIP and requiring increased final inspection procedures.
Solution: Our customer installed one Sigmund which measured the torch after every part and torch clean, preventing a part from being produced with a misaligned torch.

Potential Savings - Example 1
Frequency of problem due to torch deviation. (once in 15 production shifts, once a week) x1
Average parts produced before detection. (average 1 part every minute) x3
Rework costs per part. (£13 /h labour + floor space, power, consumables and material handling (Total 20 minutes per part) £7 £21
Number of parts saved by automatic fault notification. Maintaince notified automatically. (3 minute response time) x3
Lost revenue per part not produced. (£1.00 each) £1 £3
Total cost due to torch deviation per week. (running 5 days a week; 5 x £21 + 5 x £3 = £120) x5 £120
Total cost over 1 year. (4 weeks shut down per year) x48 £5,760
Total cost over 2 years.
x2
£11,520

This example does not take into account the cost of substandard part actually making it to the customer.