solutions for the concrete industry since 1985 1 the business case for truly lean manufacturing...

Solutions for the concrete industry since 1985

The Business CaseThe Business Caseforfor

Truly Truly Lean ManufacturingLean Manufacturing

Presented by

J. McCoy Equipment Ltd.


J. McCoy Equipment Ltd.J. McCoy Equipment Ltd.

Manufacturer of mixing systems for the concrete industry world-wide

Founded in 1985, now experiencing rapid growth, 70% of product is exported

President is John McCoy with 30 years experience in concrete manufacturing


From Components and Machines …From Components and Machines …

Proprietary Concrete Construction Shapes Mixing Machines Mixing Stations


Large scale integratedmixing / batching

installationSmall-scale

batching system

… … to Batching Systems …to Batching Systems …


Digital prototype of a complete plant

Actual installation

Add-on batch plant to an existing facility

… … to Complete Facilitiesto Complete Facilities


Some BackgroundSome Background

The company’s founder managed a large concrete manufacturing plant for the first 20 years of his career

Daily issues included Personnel conflicts Bottlenecks and delays Machine malfunctions Dissatisfied customers


Some ObservationsSome Observations

The cause of every business disruption was invariably due to human error

There was constant pressure to keep the plant running at peak capacity

Economic cycles drove repeated expansion and downsizing with major upheaval for people and profits


In the Final Analysis …In the Final Analysis …

To be successful over the long term, a manufacturer must Formalize every process in the operation, both

on the Shop Floor and in the Front Office

Automate routine processes wherever possible

The true value of a business rests in its knowledge assets, not its physical assets


We are a virtual manufacturer with No production facilities

Fast response to customer inquiries and market changes

Very low fixed operating cost

Rapid growth and healthy profit margins

This Experience Makes UniqueThis Experience Makes Unique


Sales

Engineering

Production

Installation

Commissioning

Shipping

McCoy Equip.

Subcontractors

Typical custom project from start to finishLEGEND

VISION: Own the product knowledge and the market, subcontract the rest

Purchasing

Our Business ModelOur Business Model


J. McCoy Equipment leverages ‘know-how’ to create real value for its customers and its shareholders.

1. Sales, Engineering, and Commissioning functions require knowledge assets

2. Purchasing, Production, Shipping, and Installation require physical assets

Emphasis on Core CompetenceEmphasis on Core Competence


Overcoming the Classic DilemmaOvercoming the Classic Dilemma

Many manufacturers in mature industries are Saddled with extensive physical assets Forced to ‘feed the beast’ of production Unable to change product focus easily or quickly.

… whereas knowledge-based companies don’t have to redirect profit to sustain physical assets (and the staff who manage them)


The #1 Obstacle to Our Success?The #1 Obstacle to Our Success?

1. Custom products must be engineered by highly-skilled people to price, procure, and manufacture

2. Documentation must be timely, accurate and understandable to enable subcontracting

SalesEngineering

Production

InstallationCommissioning

Shipping

PurchasingEngineering

Critical Issues

The typical weak link


Overcoming the ObstacleOvercoming the Obstacle

There’s a new technology called enterprise resource automation, or ERA. It automates engineering work and delivers accurate, clear technical documentation throughout an engineer-to-order manufacturing company.

We investigated, then selected a system based on its functionality and the strength of the vendor’s in-house engineering talent.


This is where This is where WeWe Apply ‘Lean’ Apply ‘Lean’

Working with the NeXtreme Automation people, we’re continually formalizing our product knowledge to Capture and leverage existing ‘know-how’

Automate engineering design to drive quoting, Bill of Material generation, and drawing production

Develop new product concepts without the expense of physical prototyping


Component ExampleComponent Example

Variable / Model 18B-420-SE 24B-420-SE 30B-420-SE 36B-420-SE 18C-420-SE 24C-420-SE 30C-420-SE 36C-420-SE 42C-420-SE 48C-420-SE 18B-435-SE 24B-435-SE 30B-435-SE 36B-435-SE 18C-435-SE 24C-435-SE 30C-435-SE 36C-435-SE 42C-435-SE 48C-435-SE

AV_dblBaseHoleSeparation_E 27.000 33.000 39.000 45.000 27.000 33.000 39.000 45.000 51.000 57.000 27.000 33.000 39.000 45.000 27.000 33.000 39.000 45.000 51.000 57.000AV_dblEdgeRollerCornerHeight_F 9.750 10.500 11.125 11.875 9.750 10.500 11.125 11.875 12.500 13.250 11.500 12.750 13.875 15.000 11.500 12.750 13.875 15.000 16.125 17.250

AV_dblEdgeRollerCornerSeparation_G 21.500 27.250 33.000 38.750 21.500 27.250 33.000 38.750 44.500 50.250 19.250 24.500 29.750 35.000 19.250 24.500 29.750 35.000 40.375 45.625AV_dblCenterRollerTangentHeight_H 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500 7.500

AV_dblCenterRollerLength_RL 6.750 8.750 10.750 12.750 6.750 8.750 10.750 12.750 14.750 16.750 6.750 8.750 10.750 12.750 6.750 8.750 10.750 12.750 14.750 16.750AV_dblRollerDiameter 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000

AV_dblEndRollerLength 6.750 8.750 10.750 12.750 6.750 8.750 10.750 12.750 14.750 16.750 6.750 8.750 10.750 12.750 6.750 8.750 10.750 12.750 14.750 16.750AV_dblEndRollerAngle 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 35.0 35.0 35.0 35.0 35.0 35.0 35.0 35.0 35.0 35.0

AV_dblRubberRingThickness 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750 1.750AV_intRollerState 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

AV_dblGrooveRootDiameter 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000AV_dblTubeWallThickness 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875 0.1875

4" - 20 deg CEMA B 4" - 20 deg CEMA C 4" - 35 deg CEMA B 4" - 35 deg CEMA CVendor Data

CAD Variables Parametric

Geometry

Selected Model


Assembly Layout ExampleAssembly Layout Example

Lay out complex systems and test

concepts before

detailed design


Design FeedbackDesign Feedback

Web browser

review model


Digital Prototype SubassemblyDigital Prototype Subassembly

Every element

sized and located in 3D space


Bill of MaterialsBill of Materials

Design elements

detailed for calculated

costing


Detailed DrawingsDetailed Drawings

Shop-ready prints

extracted from the

digital prototype


Customer Approval ModelsCustomer Approval Models

Review a custom

design in a web

browser to confirm

important details


Precise, repeatable results for any product family programmed into the ERA system

Rapid iteration of design options during quotation and pre-production planning

Elimination of time-consuming, routine engineering work which adds no value

Internal Process ImprovementsInternal Process Improvements


Benefits to Our CustomersBenefits to Our Customers

Agility with instant reaction to demand

Since we manage what you’re buying and who’s making it, if a subcontractor runs out of capacity, we can assign another

Our process always gets you the best price and quality


Lean Benefits for Our BusinessLean Benefits for Our Business

Very high level of Customer satisfaction

The company weathers economic change easily with very low fixed operating cost

The company never loses its real value, our ‘know-how’, because it’s captured in a knowledge platform that we own


The End Result?The End Result?

Confidence to … Distribute a detailed design and purchasing

package to subcontractors quickly

Know all costs before committing to a Customer

Be sure of delivering quality product on time

Opportunity to address large volumes of business with minimal investment


Long-Term VisionLong-Term Vision

Our company operates on the belief that A program of continuous improvement in

engineering processes is imperative Investment in technology to automate knowledge

processes is essential to minimize fixed costs

Capture and leverage of knowledge is the surest path to profitability and growth


1. Faster customer response than any other manufacturer of like products

2. Lower cost operation enabling lower pricing with superior quality

3. Invulnerable to departure of key employees with specialized knowledge

The Competitive AdvantageThe Competitive Advantage


ContactContact

John McCoy, President

J. McCoy Equipment Ltd.28 Woodbridge CirclePort Perry, OntarioL9L 2A9Tel. (905) 985-0989Email [email protected]

solutions for the concrete industry since 1985 1 the business case for truly lean manufacturing...

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