when to reinvest in the plant floor - · pdf fileinoculation shotblast warehousing ......

Patricio GilChief Executive OfficerBlackhawk de México

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

When to Reinvest in the Plant Floor

• Increase of Production Capacity• New Products or Markets• Product or Process Innovation• Cost Reduction Initiatives• Process Control• Automation• Environmental & Safety

Reinvesting in the plant floor:

Direct relationship with the current Business Strategy

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

From the Investor’s Perspective:

Return OnInvestment

Profit

Investment

Profit

Sales

Sales

Investment

% Profitability Turnover

How much we are earning per unit

How many units we are selling per year

Making it simple:

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Where to invest?

Return OnInvestment

Profit

InvestmentMinimize Investment

Increase Profit

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Production Equipment

CoreMachines

MeltingFurnace

MoldingLine

Finishing

“Add Value or Transform the Product”

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Support Equipment

CoreMachines

MeltingFurnace

MoldingLine

Finishing

“Interphase Between Equipment”

Sand Mixer

Sand Silos

ResinAddition

Sand Mixer

Sand Silos

Sand Transportation

BondAddition

Shake Out

Sand Cooler

Scrap Charger

AlloyAdditon

Ladles

Crane Monorail

Core Storage and transportation

Inoculation Shotblast

Warehousing

Forklift

Containers

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Control Equipment

CoreMachines

MeltingFurnace

MoldingLine

Finishing

“Process Variables: Monitoring and Control”

Sand Mixer

Sand Silos

ResinAddition

Sand Mixer

Sand Silos

Sand Transportation

BondAddition

Shake Out

Sand Cooler

Scrap Charger

AlloyAdditon

Ladles

Crane Monorail

Core Storage and transportation

Inoculation Shotblast

Warehousing

Forklift

ContainersCore Lab

MetallurgyLab

Sand Lab

PouringTemperature

Layout and Physical Test

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Environmental

CoreMachines

MeltingFurnace

MoldingLine

Finishing

“Environmental Protection and Law Compliance”

Sand Mixer

Sand Silos

ResinAddition

Sand Mixer

Sand Silos

Sand Transportation

BondAddition

Shake Out

Sand Cooler

Scrap Charger

AlloyAdditon

Ladles

Crane Monorail

Core Storage and transportation

Inoculation Shotblast

Warehousing

Forklift

ContainersCore Lab

MetallurgyLab

Sand Lab

PouringTemperature

Layout and Physical Test

Gas Scrubber Dust

Collector

Fumes Collector

Building

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

People:

CoreMachines

MeltingFurnace

MoldingLine

Finishing

“Safe Working Environment and Law Compliance”

Sand Mixer

Sand Silos

ResinAddition

Sand Mixer

Sand Silos

Sand Transportation

BondAddition

Shake Out

Sand Cooler

Scrap Charger

AlloyAdditon

Ladles

Crane Monorail

Core Storage and transportation

Inoculation Shotblast

Warehousing

Forklift

ContainersCore Lab

MetallurgyLab

Sand Lab

PouringTemperature

Layout and Physical Test

Gas Scrubber Dust

Collector

Fumes Collector

SafetyEquipment

Building

Lockers Restrooms Cantina

Offices

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Utilities:

CoreMachines

MeltingFurnace

MoldingLine

Finishing

“Services Required to Operate”

Sand Mixer

Sand Silos

ResinAddition

Sand Mixer

Sand Silos

Sand Transportation

BondAddition

Shake Out

Sand Cooler

Scrap Charger

AlloyAdditon

Ladles

Crane Monorail

Core Storage and transportation

Inoculation Shotblast

Warehousing

Forklift

ContainersCore Lab

MetallurgyLab

Sand Lab

PouringTemperature

Layout and Physical Test

Gas Scrubber Dust

Collector

Fumes Collector

SafetyEquipment

Building

Lockers Restrooms Cantina

Offices

Sub Station

Compressed Air

Gas WaterWaste

DisposalPatricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Where to invest?

What are the customer’s requirements?

What is the customer currently receiving from others?

How can we differentiate from others?

Market Perspective

Grades of metal, tolerances, volumes, casting sizes and weights

Delivery times, pattern costs, value added operations, communication

Just in time deliveries, machined castings, improve casting design, prototyping

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Where to invest?

What is the condition of the current equipment?

Where are the capacity bottle necks?

Where are the opportunities for automation?

Are we operating within the environmental and labor law

Operations Perspective

Up time records, consistency, spare parts availability, general condition

What is the first, second, third bottle neck and cost to resolve it

Manual operations, cycle time improvement, quality improvement

Noise, emissions, safety, energy usage

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

How to prioritize?

We will always have more needs than money

Emergency Situations

Improve Process Capability

Increase Capacity

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Critical Decisions: Molding Line (iron)

- Casting Volume +

-C

asti

ng

Wei

ght

+ No BakeTight flask

Cope & Drag

FlasklessMatch Plate

Vertical

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Automation Drivers:

- Cost reduction- Process Control- Quality Improvement- Safety

Critical Decisions: Automation

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Critical Decisions: Automation

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Critical Decisions: Automation

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Critical Decisions: Automation

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Double equipment to increase plant reliability

Critical Decisions: Redundancy

Identify the equipment that may shut down the plant:

- Completely

- Partially

- Does not affect for a period of time

Furnace, molding line, magnet, crane, monorail, substation transformers, transfer ladle, pouring ladle, spectrometer,

Air compressor, shot blasting machine, grinder, dust collector

Core machine, CMM, hardness tester, forklift

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Critical Decisions: Redundancy

Small equipment may shut down the plant

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

- Just the minimum to comply with the law

- Internal Company values and beliefs

Critical Decisions: Environmental & Safety

The environmental and safety regulations may significantly affect the competitiveness of a region.

Company Policy:

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Critical Decisions: Environmental & Safety

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Critical Decisions: Environmental & Safety

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Critical Decisions: Environmental & Safety

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Common Obstacles:

- No resources are assigned for it- We expect the people operating to do the

innovation- Our operation culture does not allow mistakes

Critical Decisions: Innovation

An Innovation Strategy should be supported with resources, people focused on it, and the acceptance of making mistakes and run risks; otherwise it is only process improvement.

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Business Strategy defines investment decisions

Investment options always compete for resources

Resources are always limited

Priorities: Emergencies – Process Control – Growth

Conclusion

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016

Thank You!

Patricio Gil

patricio.gil@blackhawk.com.mx

Patricio Gil / AFS Supplier Summit / Chicago / February 17th, 2016