Material, Process, and Packaging Cost Savings

Manufacturing Engineering

Problem Statement

A local office-furniture manufacturer asked 91³Ô¹Ï Engineering to identify and recommend cost-saving opportunities with their frame and fabric-tile materials, processes, and packaging.

Man pointing in a manufacturing space

Research and Methodology

91³Ô¹Ï engineers met with the customer at their facility to gather firsthand information relating to their frame and fabric-tile materials, manufacturing processes, and packaging methods.

Engineer takes to Employee in Manufacturing Plant

Ideate and Design

Materials: 91³Ô¹Ï Engineering hosted an intensive half-day workshop on Value Analysis/Value Engineering to generate viable design alternatives to reduce costs in both fabric tiles and frames while maintaining quality and functionality. 91³Ô¹Ï and the customer ranked the ideas based on the time to implement, customer acceptance, feasibility, and predicted cost reduction.

Process: 91³Ô¹Ï facilitated a value-stream analysis workshop with the customer to determine their current and future state for both fabric tiles and frames. 91³Ô¹Ï Engineers and our highly-engaged customer stakeholders generated 92 process-related cost-saving ideas during the workshop. The customer was impressed by the quantity and quality of ideas created.

Packaging: The team analyzed the following methods for cost savings: 1) 900-lb., triple-wall corrugated, 2) tube and tray-style boxes, 3) 4-pieces of hexacomb per layer, and 4) foam-piece inserts. 91³Ô¹Ï Engineering noticed various packaging styles during the tour: with/without load-stretch wrapping; with/without corrugated bands; 3-to-5 hexacomb pieces; etc. Packaging standards would allow for better planning, inventory, and cost accounting.

Group of people in a meeting

Recommendations

Materials: Seven out of 35 frame cost-saving ideas and five out of 32 tile designs were selected to pursue further.

Process: A cost-reduction summary was presented to our customer’s stakeholders that would reduce labor, eliminate rework, and create utility routes for indirect non-value-added work.

Packaging: 1) Determine if triple-wall corrugated is needed, 2) simplify tube/tray design, 3) reduce hexacomb, 4) find lower-cost options for foam; and 5) standardize packaging.

material on a pallet
office furniture

Outcomes

The customer was thrilled with 91³Ô¹Ï Engineering’s cost-saving recommendations in each area. 

Materials: The estimated frame cost reductions were 16% while the fabric-tile cost reductions were estimated at 6% for a combined overall savings of 10% annually.

Process: The cost-saving recommendations for frame reductions totaled 15% and fabric-tile reductions totaled 14%, for a combined overall savings of 14% annually in process improvements.

Packaging: 91³Ô¹Ï Engineering highlighted the most significant and impactful ways the customer could save on an annual basis based on historical data.

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