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Material efficiency. Munich 11 May 2012 Dr. Gerhard Glotz. Contents. Typical problems Identify potential areas of improvement Reduce waste Perform (Re)-DtC (Design-to-Cost) analysis Establish clearly what does and doesn‘t count as improvements in efficiency The role of mass flow analysis

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material efficiency

Material efficiency

Munich

11 May 2012

Dr. Gerhard Glotz

contents
Contents
  • Typical problems
  • Identify potential areas of improvement
    • Reduce waste
    • Perform (Re)-DtC (Design-to-Cost) analysis
    • Establish clearly what does and doesn‘t count as improvements in efficiency
  • The role of mass flow analysis
  • Typical savings
    • demea interactive check
    • Published results from demea
    • Examples from the metalworking industry
  • Ressource efficiency and material efficiency
  • Grants and fundings
  • Identify suitable consultants and service providers
contents1
Contents
  • Typical problems
  • Identify potential areas of improvement
    • Reduce waste
    • Perform (Re)-DtC (Design-to-Cost) analysis
    • Establish clearly what does and doesn‘t count as improvements in efficiency
  • The role of mass flow analysis
  • Typical savings
    • demea interactive check
    • Published results from demea
    • Examples from the metalworking industry
  • Ressource efficiency and material efficiency
  • Grants and fundings
  • Identify suitable consultants and service providers
typical problems
Typical problems
  • Rejected products
  • Worn tools
  • Too much time for settings
  • No information when mistakes occur
  • Bad interdepartmental cooperation
  • Already solved problems occur again and again
  • Dead stock
  • Interruptions within the production process
  • Poor machining

 Unacceptable high material costs

contents2
Contents
  • Typical problems
  • Identify potential areas of improvement
    • Reduce waste
    • Perform (Re)-DtC (Design-to-Cost) analysis
    • Establish clearly what does and doesn‘t count as improvements in efficiency
  • The role of mass flow analysis
  • Typical savings
    • demea interactive check
    • Published results from demea
    • Examples from the metalworking industry
  • Ressource efficiency and material efficiency
  • Grants and fundings
  • Identify suitable consultants and service providers
slide11
Within ZLM (Zero loss management), all cost elements not being used and payed by the customer have to be minimized
quality cost structure typical example from a metalworking company
Quality cost structureTypical example from a metalworking company

Rough estimation:

Quality costs 10% of turnover

Material losses within quality costs 2% of turnover

process analysis
Process analysis

Mass flow analyis incl. supply chain

Analysis of production process

slide25

Σ Established costs

100

Costs

Establishment of costs

90

80

70

60

Σ Costs

50

Costs of goods in %

40

30

20

10

0

Concept-

Process plannung

Purchasing

Manufacturing

Administration

Phase

70% of product costs are established in early phases of development  only with DtC those costs may be reduced significantly
customer requirements what are the key purchasing factors of the customers
Customer requirementsWhat are the key purchasing factors of the customers?

Example: Key purchasing factors of a concrete mixer

results of comparison
Results of comparison

Over-engineered?

OK

Too expensive

establish clearly what counts and doesn t count as improvements in material efficiency
Establish clearly what counts and doesn’t count as improvements in material efficiency
  • Effectsofannualpurchasingnegotations
  • Effectsofmoreefficientfabrication
  • Effectsof material costssavings
price performance analysis doesn t count as improvement
Price performance analysis doesn’t count as improvement

Only material savings are considered as better material efficiency, but not other

measures such as price negotations, reduction of process time etc

contents3
Contents
  • Typicalproblems
  • Identify potential areasofimprovement
    • Reducewaste
    • Perform (Re)-DtC (Design-to-Cost) analysis
    • Establishclearlywhatdoesanddoesn‘tcountasimprovements in efficiency
  • The roleofmassflowanalysis
  • Typicalsavings
    • demeainteractive check
    • Publishedresultsfromdemea
    • Examplesfromthemetalworkingindustry
  • Ressource efficiencyand material efficiency
  • Grants andfundings
  • Identifysuitableconsultantsandserviceproviders
the role of mass flow analysis
The role of mass flow analysis
  • Mass flow analysis is the key element of the process analysis phase within ZLM
example
Example

Within the German programme

VerMat,

a mass flow analysis has to be done at the beginning of each project

contents4
Contents
  • Typical problems
  • Identify potential areas of improvement
    • Reduce waste
    • Perform (Re)-DtC (Design-to-Cost) analysis
    • Establish clearly what does and doesn‘t count as improvements in efficiency
  • The role of mass flow analysis
  • Typical savings
    • demea interactive check
    • Published results from demea
    • Examples from the metalworking industry
  • Ressource efficiency and material efficiency
  • Grants and fundings
  • Identify suitable consultants and service providers
examples from the metalworking industry dtc results in the automotive industry
Examples from the metalworking industryDtC-results in the automotive industry

only 25% due to material efficiency

examples from the metalworking industry production of mechanical induction devices
Examples from the metalworking industryProduction of mechanical induction devices

Results of analysis of losses:

  • Processes  5.7 % of turnover
  • Re-DtC  2.1 % of turnover
  • Gross effect  7.8 % of turnover

However, the reduction of losses results in additional permanent costs (e.g. quality control etc)

  • Permanent personal costs  2.2 % of turnover
  • One-time costs  0.7 % of turnover
  • Net effect  5.6 % of turnover
contents5
Contents
  • Typical problems
  • Identify potential areas of improvement
    • Reduce waste
    • Perform (Re)-DtC (Design-to-Cost) analysis
    • Establish clearly what does and doesn‘t count as improvements in efficiency
  • The role of mass flow analysis
  • Typical savings
    • demea interactive check
    • Published results from demea
    • Examples from the metalworking industry
  • Ressource efficiency and material efficiency
  • Grants and fundings
  • Identify suitable consultants and service providers
contents6
Contents
  • Typical problems
  • Identify potential areas of improvement
    • Reduce waste
    • Perform (Re)-DtC (Design-to-Cost) analysis
    • Establish clearly what does and doesn‘t count as improvements in efficiency
  • The role of mass flow analysis
  • Typical savings
    • demea interactive check
    • Published results from demea
    • Examples from the metalworking industry
  • Ressource efficiency and material efficiency
  • Grants and fundings
  • Identify suitable consultants and service providers
contents7
Contents
  • Typical problems
  • Identify potential areas of improvement
    • Reduce waste
    • Perform (Re)-DtC (Design-to-Cost) analysis
    • Establish clearly what does and doesn‘t count as improvements in efficiency
  • The role of mass flow analysis
  • Typical savings
    • demea interactive check
    • Published results from demea
    • Examples from the metalworking industry
  • Ressource efficiency and material efficiency
  • Grants and fundings
  • Identify suitable consultants and service providers