Costing Consumable and Hire by aqz42118

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									            S74
Small Scale Remanufacturing
   Shop Design – Level 1
            World Expo 2003
           Las Vegas, Nevada
       Sunday, September 14, 2003
            Long Range Plan
                                           2003 Pages Printed by Group

                                              Group 6    Group 1
                              Group 5           1%         3%
                                                               Group 2
                                9%
                                                                 13%
                                                                                     Group 1
                                                                                     Group 2
                                                                                     Group 3
                                                                                     Group 4
                                                                                     Group 5
                            Group 4
                              49%                                Group 3             Group 6
                                                                   25%


      Home and Small Office Printing                                      Group 1
      Education                                                           Group 2
      Professional Business Communication                                 Group 3
      Business High Volume                                                Group 4
      Business Presentation / Marketing                                   Group 5
      Publishing / Proofing / Pre-press                                   Group 6

17-Mar-11                                        Expo 2003                                     2
                 A Maturing Industry
                                                  Customer
                                                   Needs

                                                   New and
     Enterprise                                     Current
                                                Products/Servic
     Planning                                          e

     Strategy                                   Performance
                                                  Priorities
                                              and Requirements


                                              Quality, Dependability,
                                                      Service
                                              Speed, Flexibility, and
                                                       Price




                                            Enterprise Activities & Capabilities

                                       Operations & Supplier Capabilities

    Technology    Systems     People          R&D          Training         Materials      Quality   Distribution



                                            IT & Support Platforms
                                               Human Resource
       Financial Management                                                             Information Management
                                                Management




17-Mar-11                                           Expo 2003                                                       3
   Timing is everything
• Remanufacturing is a couple decades
  smarter
      New Business / New Product Life Cycles
      •        Development                   1986
      •        Growth                        1995
      •        Expansion                     1999
      •        Maturity                      Laser ??
      •        Saturation
      •        Decline




    17-Mar-11                      Expo 2003            4
  Laser / Ink Jet
     Cartridge
Consumables Market
                                          Consumables / Revenue


                             2003
    Billions of US Dollars




                                                                              Group 6
                             2002                                             Group 5
                                                                              Group 4
                             2001
                                                                              Group 3
                             2000                                             Group 2
                                                                              Group 1
                             1997

                                $0.00   $2.00    $4.00        $6.00   $8.00


 17-Mar-11                                        Expo 2003                             5
                                         US Market (CAP Ventures)
                                                                           TOTAL ANNUAL CARTRIDGE SALES



                                70.0



                                60.0



                                50.0
SALES IN MILLIONS OF UNITS




                                                                Total Cartridge Market


                                40.0
                                                                                                                                       rmfg
                                                                                                OEM Portion
                                                                                                                                       ttl. Mkt.
                                30.0



                                20.0


                                         Remanufactured Cartridge Market
                                10.0

                                                                                                          RM Portion
                                 0.0                                                                                     ~27%
                                           1996          1997          1998             1999                2000       2001     2002
                              rmfg         11.1          12.6          13.0              14.2               15.0       16.0     16.9
                             ttl. Mkt.     35.1          44.0          47.9              52.8               56.4       58.4     60.8
                                                                                         year




17-Mar-11                                                                       Expo 2003                                                 6
Opportunity Placement
 •   Development stage, there are no cartridge sales at all. However
     manufacturing must support a development area and resources to
     insure a timely product launch.
 •   Growth stage, sales are slow and marketing costs are high; often
     manufacturing resources need to be supplemented by frequent
     training sessions and manufacturing team building.
 •   Expansion stage, sales should grow more rapidly, and
     manufacturing teams are executing their well thought out plans to
     accommodate growth.
 •   Maturity stage, sales will plateau as most customers who want the
     product have quality sources for the product. Manufacturing teams
     have predicted this plateau and the production schedules will
     adjust for sales volume and inventory reduction.
 •   Saturation stage, every customer who wants the cartridge product
     has several competitive sources for acquisition, and there are few
     opportunities for increasing sales.
 •   Decline stage, cartridge sales fall and the product eventually
     becomes obsolete. Manufacturing teams have transitioned
     resources to new products and reduced raw materials and finished
     goods to reduce financial risk.



 17-Mar-11                      Expo 2003                             7
                                                                                       %of
                                                                                          To
Carts/mo.   #ofRM   Cart Vol.   $ Vol./ channel   % GM     Profitability   Delta 1%       tal




   50        250     12500       $396,875.00      32.00%    $127,000        $3,969    0.65%

  100        412     41200      $1,308,100.00     28.00%    $366,268       $13,081    1.86%

  500        620     310000     $9,842,500.00     28.00%   $2,755,900      $98,425    14.00%

                                $18,288,000.0
  1000       576     576000              0        26.40%   $4,828,032      $182,880   24.52%

                                $21,717,000.0
  2000       342     684000              0        24.50%   $5,320,665      $217,170   27.02%

                                $10,160,000.0
  5000       64      320000              0        22.60%   $2,296,160      $101,600   11.66%

 10000       25      250000     $7,937,500.00     21.30%   $1,690,688      $79,375    8.59%

 20000       11      220000     $6,985,000.00     18.45%   $1,288,733      $69,850    6.55%

 40000        5      200000     $6,350,000.00     16.00%   $1,016,000      $63,500    5.16%




 Totals     2305    2,613,700    $82,984,975      24.14%   $19,689,445     $829,850



17-Mar-11                                Expo 2003                                              8
                                                  US Market (CAP Ventures) HP4000 Life


                                                                               52X REMANUFACTURED CARTRIDGE SALES IN UNITS
                                                                                             (BASIS '98 CAP)

                                          8.0



                                          7.0                                                                                            Total HP4000
                                                                                                                                         Cartridge
                                          6.0
HP4000 Sales in Millions of Units




                                          5.0



                                          4.0
                                                                                                                       Reman ~ 50% Threshold

                                          3.0



                                          2.0

                                                                                                Remanufactured HP4000 Cartridge
                                          1.0



                                          0.0
                                                     1996               1997            1998             1999                2000        2001              2002
                                    52X               0.0               0.0              0.1              0.5                1.0          1.6              1.7
                                    Total carts       0.0               0.1              1.4              3.8                5.6          6.3              6.8



                                                              Introduction                                      Growth                          Maturity
                                                              2 years                                           2 years                         2 years.



                                                  17-Mar-11                                        Expo 2003                                                      9
                           April 2002 Recharger Data

                                             Cartridge Market by Engine
                        25.00% 23.8%
    Manufactured Cost



                        20.00%


                        15.00%                13.0%
                                                                                  10.0%                 Market %
                        10.00%                        8.7%                                9.2%

                                       5.9%                  6.0%                                5.9%
                        5.00%
                                                                    0.9% 1.0%
                        0.00%
                                 EX     PX    4000    WX      VX    8100   2100    AX      SX     NX

                                                              Engine



17-Mar-11                                                    Expo 2003                                             10
                      Value Chain Details
                                                  Inbound Logistics
Operations
                                                  • Receiving / Inspection
•    Production                                   • Production Scheduling
•    Equipment Maintenance                        • Inventory Control
•    Rework                                       • Warehouse management
                                                  (Position control)
•    Facilities
•    Inventory
                                                      Outbound Logistics
•    H/R
                                                      • Order Acceptance
                                                      • Picking
            Service and Support                       • Inventory Adjust
                                                      • Cycle Count / Inventory
            •   Technical Training                    Adjust
            •   Production Process Development        • Ship Confirm
            •   Testing
            •   Documentation
            •   Recruit / Hire
    17-Mar-11                         Expo 2003                              11
             Value Chain Details
Sales and Marketing
• Sales Goals
• Product Management
• Advertisement
• Customer Identification
  and priority
                                        Service and Support
• Forecasting
                                        •Training
                                        •Sales Process Development
                                        •Customer Support
                                        • Documentation




17-Mar-11                   Expo 2003                                12
                Cost Analysis
• Feasibility Estimates
   – Use existing production model
• Observe Market as the process is Developed
   – Target Cost per cartridge
   – Acceptable Cartridges / HOUR (First Pass Yield)
• Breakouts (QPA)
   – Materials
   – Labor
   – Handling .. Value added




    17-Mar-11                  Expo 2003               13
                                          EX        PX       4000      WX         VX        8100     2100      AX        SX        NX
TRUE COST                    dpc >>     $33.82    $33.86    $63.33    $55.59    $40.44     $85.50   $45.33   $41.41    $19.82    $33.25
                            Yr/Ave      23.80%    5.90%     13.00%    8.70%     6.00%      0.90%    1.00%    10.00%    9.20%      5.9%
                                          EX        PX       4000      WX         VX        8100     2100      AX        SX        NX
                                         2,618     649       1,430     957       660         99      110      1,100     1,012     649
                                        $88,532   $21,978   $90,566   $53,204   $26,690    $8,465   $4,986   $45,549   $20,056   $21,582   $4,320,300
                           QPA(AVE)                                                                                                          $580,648
               OPC           0.95       $11.67    $12.45    $20.10    $18.06    $12.23     $22.90   $17.10   $12.10     $7.34     $8.20           $1.40
               PCR           0.31        $7.01     $3.25     $3.20     $7.25     $3.20     $3.90    $2.80     $3.60               $3.20
              Cblade         0.80        $3.19     $2.39     $3.10     $5.70     $2.29     $4.65    $3.25     $4.85     $1.85     $3.19
             Sweeper         0.78        $0.26     $0.25     $0.32     $0.22     $0.25     $0.21    $0.25     $0.24     $0.36     $0.23
              Dblade         0.42        $4.18     $2.65     $3.10     $4.67     $2.32     $5.32    $2.56     $2.65               $3.66
               Toner         1.00        $7.29     $4.80    $12.50    $16.20     $5.69     $18.67   $5.30     $4.50     $4.54    $10.45
               Seal          1.00        $0.79     $0.65     $0.90     $0.83     $0.80     $0.87    $0.87     $0.73     $0.34     $0.42
              Mbush          0.38        $0.25                         $0.49               $0.52              $0.25     $0.22     $0.22
               Box           1.00        $0.55     $0.48     $0.60     $0.75     $0.52     $0.77    $0.63     $0.48     $0.67     $0.72
               Bag           1.00        $0.15     $0.15     $0.15     $0.28     $0.15     $0.30    $0.15     $0.17     $0.15     $0.21
              Rocker         1.00        $0.53     $0.52     $0.36     $0.89     $0.47     $0.90    $0.32     $0.55     $0.46     $0.64
              Empty          1.00        $2.00     $6.20    $17.25     $4.50    $12.40     $27.00   $12.00   $11.90     $1.00     $1.55
               Labor         1.00        $3.28     $3.43     $4.50     $4.20     $3.54     $4.40    $3.67     $3.76     $2.98     $3.77
               Ship          1.00        $0.30     $0.25     $0.45     $0.45     $0.29     $0.45    $0.30     $0.25     $0.25     $0.29
    QPA'd SUBTotal           43.7       $32.76    $32.54    $60.83    $54.38    $39.47     $82.64   $44.22   $40.23    $19.21    $31.18


       Inventory(6turns)                $0.943    $1.252    $2.356    $1.127    $0.915     $2.638   $0.674   $1.146    $0.602    $2.046
            Rework/cart                  $0.12     $0.08     $0.15     $0.08     $0.05     $0.22    $0.43     $0.04     $0.01     $0.02
            Rework %       10.45%       12.00%    7.50%     11.00%    6.70%     5.00%      17.00%   39.00%   3.20%     1.00%     2.10%
                          No. RW         314        49       157        64        33         17       43       35        10        14       736
                          CostEng/mo.   $309.13   $50.09    $212.36   $80.79    $35.05     $22.22   $47.23   $39.71     $9.05    $15.41    $821.03
                                                                                                                                           0.14%




                                     Approx.                 True Cost Production Model


                       17-Mar-11                                                          Expo 2003                                                       14
                        Production Mode 1000/mo.
                                19-Feb-99                                           EX      PX      4000       WX       VX       8100     2100     AX       SX       NX
                                            TRUE COST                   dpc >>    $33.82   $33.86   $63.33    $55.59   $40.44   $85.50   $45.33   $41.41   $19.82   $33.25
                 updated 2/00                                           Yr/Ave   23.80%    5.90%    13.00%    8.70%    6.00%    0.90%    1.00%    10.00%   9.20%    5.9%
Customer Model   Cart/Mo.                                                           EX      PX      4000       WX       VX       8100     2100     AX       SX       NX                CANON
Laser Bob              1000                                                        238       59      130        87       60       9        10      100       92       59                 844
                                                                                  $8,048   $1,998   $8,233    $4,837   $2,426    $770     $453    $4,141   $1,823   $1,962   $392,755 Proj. Cost/mo.
                                                                      QPA(AVE)                                                                                                $83,421 GM = 12% Ave
                                                           OPC           0.95     $11.67   $12.45   $20.10    $18.06   $12.23   $22.90   $17.10   $12.10   $7.34    $8.20       $1.40 CarryCost/cart AVE>
                                                           PCR           0.31     $7.01    $3.25    $3.20     $7.25    $3.20    $3.90    $2.80    $3.60             $3.20
                                                          Cblade         0.80     $3.19    $2.39    $3.10     $5.70    $2.29    $4.65    $3.25    $4.85    $1.85    $3.19
                                                         Sweeper         0.78     $0.26    $0.25    $0.32     $0.22    $0.25    $0.21    $0.25    $0.24    $0.36    $0.23
                                                          Dblade         0.42     $4.18    $2.65    $3.10     $4.67    $2.32    $5.32    $2.56    $2.65             $3.66
                                                           Toner         1.00     $7.29    $4.80    $12.50    $16.20   $5.69    $18.67   $5.30    $4.50    $4.54    $10.45
                                                           Seal          1.00     $0.79    $0.65    $0.90     $0.83    $0.80    $0.87    $0.87    $0.73    $0.34    $0.42
                                                          Mbush          0.38     $0.25                       $0.49             $0.52             $0.25    $0.22    $0.22
                                                           Box           1.00     $0.55    $0.48    $0.60     $0.75    $0.52    $0.77    $0.63    $0.48    $0.67    $0.72
                                                           Bag           1.00     $0.15    $0.15    $0.15     $0.28    $0.15    $0.30    $0.15    $0.17    $0.15    $0.21
                                                          Rocker         1.00     $0.53    $0.52    $0.36     $0.89    $0.47    $0.90    $0.32    $0.55    $0.46    $0.64
                                                          Empty          1.00     $2.00    $6.20    $17.25    $4.50    $12.40   $27.00   $12.00   $11.90   $1.00    $1.55
                                                           Labor         1.00     $3.28    $3.43    $4.50     $4.20    $3.54    $4.40    $3.67    $3.76    $2.98    $3.77
                                                           Ship          1.00     $0.30    $0.25    $0.45     $0.45    $0.29    $0.45    $0.30    $0.25    $0.25    $0.29
                                                QPA'd SUBTotal          43.7      $32.76   $32.54   $60.83    $54.38   $39.47   $82.64   $44.22   $40.23   $19.21   $31.18


                                                   Inventory(6turns)              $0.943   $1.252   $2.356    $1.127   $0.915   $2.638   $0.674   $1.146   $0.602   $2.046
                                                        Rework/cart               $0.12    $0.08    $0.15     $0.08    $0.05    $0.22    $0.43    $0.04    $0.01    $0.02
                                                        Rework % 10.45%          12.00%    7.50%    11.00%    6.70%    5.00%    17.00%   39.00%   3.20%    1.00%    2.10%
                                                                      No. RW        29       4        14        6        3        2        4        3        1        1       67
                                                                      CostEng/mo. $28.10   $4.55    $19.31    $7.34    $3.19    $2.02    $4.29    $3.61    $0.82    $1.40    $74.64
                                                                                                                                                                             0.09%    of GM




            17-Mar-11                                                                                        Expo 2003                                                                                      15
    Process Developments for
      Planned Improvement

•   IM&P Inventory Management & Planning
     –   Reducing raw materials as well as product inventory creates cash flow.
     –   Forecasting purchases helps lower prices and insures availability
•   Understand market and your cost
•   Monthly assessments of executing your plan




    17-Mar-11                              Expo 2003                              16
         Product Success Metrics
•   Image Performance
     –   Halftone reproduction
     –   Line art
•   Yield
•   Solid fill uniformity
•   Printer maintenance reduced
     –   Fuser performance
     –   cleanliness
•   Standards and industry uniformity
•   Ultimately it’s Profit $$$$$$$$$$$$$$$$$$$$$




         17-Mar-11                Expo 2003        17
                                Objectives

•   Consistency; To provide your customers with functional products, insist on
    consistency from your vendors. The next shipment of a product has to be the
    same as the last acceptable shipment.

•   Reliability; A statistical sampling system enables you to ensure your vendors
    are reliable, with good product, in a timely manner, conforming to the
    specifications established during the development phase of product acquisition.

•   Accuracy; Incoming inspectors confirm the accuracy of incoming product.
    Confirming product identification, conformance to specification, packaging and
    labeling.




         17-Mar-11                         Expo 2003                                  18
        Success is People
• Every group, department, from the top
  down …….. execute
• Process management measures results
• Results reaffirm the plan
• Constant improvement
• Lowers Cost




    17-Mar-11          Expo 2003          19
                     Success is people

Process Development

     Consistent Product
     Understand limitations of the product
     Specification and accuracy
     Corrective action
     Training …. Training …… and more




        17-Mar-11                  Expo 2003   20
    Electronic Printing Technology
•   Large history of method standards for the copier
    industry
    –   Toner testing
    –   Photoconductor performance
    –   Customer satisfaction

•   Remanufacturing a consumable
    –   Use Automotive “parts” industry as a model
    –   Customer quality assurance
    –   Purchasing guideline
    –   Core replacement
    –   Faceless and nameless ACCEPTED Quality




        17-Mar-11                       Expo 2003      21
       Target Areas for
       Standardization
            •   Raw Materials
            •   Replacement Componentry
            •   Finished Assemblies
            •   Performance and Comparison
            •   Materials acquisition
            •   A/P and A/R
            •   Forecasting
            •   Shipping




17-Mar-11             Expo 2003              22
 Test …and Measurement
• Statistics 101
   – List ALL areas where data can be gathered
       • Accuracy
       • Usable data
   – Taking the data is the first step
       • Leaders need time to work with the data to make process
         changes
       • Acquisition and presentation




     17-Mar-11                   Expo 2003                         23
      Imaging Competition
•   Consumables
    – OEM Benchmark
    – Cost
    – Reliability
•   Remanufacturing
    – Expectations from consumables
    – Cost per page .02-.04/or replacement cost
    – Media independence
    – Value (perceived)




      17-Mar-11                   Expo 2003       24
    Quality: First and Foremost
•   Objectives:
•    Consistency, Reliability,           •     Allies: Interactive
    Accuracy.                                  Vendors, Customer
•   Raw Materials ( Purchases)                 feedback,
•   Empties                              •     Adversaries:
•   Incoming Inspection: Quality               Variation, Unexpected
    Control Methods and Examples               Vendor modifications,
                                               Inappropriate process
                                               deviation
                                         •     Teamwork




       17-Mar-11                   Expo 2003                           25
            Product Feasibility
•   Develop product model
    –   Printer placement and acceptance
    –   Cartridge mechanics and access
    –   Marketing info
    –   Past history

•   Production Assumptions and Estimates
    – Develop timeline
    – Imagineer process and costing




        17-Mar-11                  Expo 2003   26
Process Design & Details
 •   Cell …………….. To ……………...
     –   From past experience develop cell picture
     –   Solve material flow
     –   Breakdown training issues
     –   Document bill of materials (BoM)
     –   remember the “long range plan” (LRP)


 •   ……… Managed Production
     –   Correct process
     –   Training
     –   Scale UP




 17-Mar-11                        Expo 2003          27
              Prototype Process
•   Draw pictures … cut out the paper pieces
    – Map the process from the Cell stage to Managed production
    – Look at the facilities details
        • Air .. Heat … Power .. Lights … Traffic … Storage
    – Pick your people resources … share the ideas
•   Set up a dummy cell …. Dry run
    – Check Raw materials flow
    – Who’s waiting
    – Check your plan




       17-Mar-11                     Expo 2003                    28
     Corrective Action (plan for it)

•   Process defects or procedural changes
    – Review with all production teams … you may have some
      ability to kill a problem before it starts
•   Retain Visual samples of defects for training
•   Preparation inspections prevent drone mistakes …
    Awareness of the process is crucial
•   End of shift positive reinforcement
    – Announce data
    – Show / Chart progress
    – Training awards … not material … verbal praise in front of
      peers




       17-Mar-11                    Expo 2003                      29
     Team Leaders are “people”

•   Groom with future goals in mind
•   TRAINING is communicating your plan
•   Clear concise and ATTAINABLE Goals
•   POSITIVE Atmosphere
•   Watch for “diamonds in the rough”




      17-Mar-11            Expo 2003      30
                Raw Materials
                Management
• Empties
   – Source … Cleaning … Inspect …. Waste … Cost
• Cleaning & Handling
   – Storage … Damage Control … Assembly Staging
   – Solvents … Inspect .. Waste … Time … Cost
• Assembly
   – Readiness … Tools … Inspection … Time .. Cost




    17-Mar-11                Expo 2003               31
        Process Foundry
•   Build the REAL Cell
    – Staff Cell
•   Order protocol & forecast
•   TRAINING
•   Flexibility
    – Document changes and corrective action
•   Statistics & Process Measurement
    –   Raw material yields
    –   Flow issues
    –   Assembly rates
    –   Test performance




17-Mar-11                     Expo 2003        32
           Capital Equipment

• Primary Equipment requirements
   –   Time savings
   –   Quality enhancement
   –   Training required
   –   Human component
• Secondary requirements
   – Maintenance
   – Obsolescence
   – Expansion




       17-Mar-11             Expo 2003   33
               Productivity
• Facility Layout
   – Material flow
   – Cleanliness
• Documented Procedures for simple tasks
   – Simplifies training
   – creates standard
• Training
   – Cross training, and daily rotation
   – Team Leaders … Building Quality
• Sound Forecast
   – Minimize... waste, storage,hassles
   – Supply Chain Management




   17-Mar-11                    Expo 2003   34
                  Cell to Managed Production
                                Transition
• Planned transition …
   – Pick the criteria early
   – Set training goals early
• Quality is a job well thought out and well tooled
• Excellent training and complete task description
  fosters worker happiness
• Success is people




      17-Mar-11                  Expo 2003            35
           Planned new
           material, remove                     Assemble
           waste              Inspect & Stage


Empties..
Disassembly &                                      Remove reject
Cleaning & Seal                                    material




                                                 Test & await
                                                 packaging



                                Generic Cell
        Empties



    17-Mar-11                    Expo 2003                         36
   Keep it Simple Stupid (KISS)

• Visual aids … 75% of learning is facilitated by visual
  cognition. PICTURES not WORDS
• Constant positive reinforcement is Constant
  Improvement.
• Cross train similar job functions .. Remember social
  circles and peer pressure are your allies
   – Disassembly ---- Assembly
   – Evacuation ---- Component Prep
   – Pre Test ---- Final Test




     17-Mar-11                 Expo 2003                   37
 Assess each work function
• Map mini process
    – document
    – training guidelines
    – Timing
• Mini production for some work function
    – Skill assessment
    – Time
• Realistic training goals
    – Critical for Quality Control
    – No job is more important




      17-Mar-11                      Expo 2003   38
       Production Layouts

• Layout 2
   – Assumes products total ~250 carts a day (3-6 products) monthly
     target is 10000
   – Setup is for one line “teams” and a “specialty cell”
   – Product switchovers are scheduled on daily intervals




     17-Mar-11                    Expo 2003                           39
                                                                                                                       Component Cleaning and Prep area


                                           Hopper Split & Prep                                                        PCR            OPC             Corona


                                                                                   Production REWORK

                                                                                                       Final Test Printing Area


                                             Hopper       Sealing        Filling
Materials cart
                                             Clean
                                                                                                                                  Box Tape & Sort

                                       Disassem
                                       .                                            Hopper
                                                                                    Reassemble
                                                            Waste
                                             Waste Bin
                                                            Bin
                                             Clean.
                                                            Assm..


                                                                                             FINAL      Labeling / Bagging / Packaging
                                                                                                        Area
                                                                                             Assemb.
                 Incoming Dock Area




                                                                                                                                                                  Ship Dock Area
                                                                                             Specialty Reman Cell




                                                                    Tear-down / Evacuation



                                      17-Mar-11                                          Expo 2003                                                           40
                                           2000 square feet
          Safety Requirements

• FROM the TOP Down
  – ALL quality management tools start from
    acceptance at the top … Safety requirements and
    concerns are PRIMARY
• High visibility area for procedures and
  Training
• Monthly assessments




    17-Mar-11            Expo 2003                    41
                       Toner
• Toner Inspection: Vendors conduct laboratory testing and print
  testing on all incoming lots of toner, and retains a sample for
  future reference. Track the data !!!
• Physical Testing: Laboratory testing is conducted to determine
  the average particle size, percentage fines (small particles -
  less than 5 mm), percentage grit (large particles - greater than
  12 or 16 mm depending upon the toner), and Tribocharge
  (charge generated from contact with a blade or roller).
On Site
• Print Testing: In your print room the sample toner is run for a
  screen test, with prints being sampled for Black Image Density
  and Background at the beginning of the cycle, at 100 pages and
  500 pages. (ASTM 1856 …. others)
• Acceptance




     17-Mar-11                  Expo 2003                        42
                                                Canon Cartridge Reman Eff


        460

        440

        420

        400
Carts




                                                                                                                                           Per Day
        380

        360

        340

        320

        300
         1 2/ 21 / 98   2/ 9/ 99   3/ 31 / 99    5/ 20/ 99   7/ 9/ 99   8/ 28/ 99   1 0/ 1 7/ 99   1 2/ 6/ 99   1 / 25/ 00   3/ 1 5/ 00   5/ 4/ 00



                                                                        Date




                   17-Mar-11                                                            Expo 2003                                                    43
                                                                 Production SPC
                                              Cartridges Produced (per man per hour)

              3.70



              3.50



              3.30
Cart/Man/hr




              3.10                                                                                                           Per/LW



              2.90



              2.70



              2.50
                12/21/98   2/9/99   3/31/99   5/20/99   7/9/99   8/28/99   10/17/99   12/6/99   1/25/00   3/15/00   5/4/00
                                                                 Date




                      17-Mar-11                                            Expo 2003                                                  44
                                                         Production SPC

               2/23/00     132     60      32     20     19      6      7      58      22     15     371     2.91
               2/24/00     127     70      46     35     15      8      5      58      14     27     406     3.18
Line workers   2/25/00     125     61      46     38     18      8      5      54      14     29     396     3.11
     15        2/28/00     137     63      51     23     13      6      7      37      40     17     393     3.09
               2/29/00     138     67      43     32     12      6      7      58      41     35     439     3.44
                3/1/00     128     66      36     26     26      11     7      18      22     26     366     2.87
                3/2/00     136     64      50     26     22      4      6      46      28     20     400     3.14
                3/3/00     126     70      34     22     21      6      9      27      36     27     379     2.97
                3/6/00     127     65      38     30     20      7      5      42      44     25     402     3.16

Totals          Days       EX      PX     4000    WX     VX     8100   2100    AX     SX     NX     Grand    Rate

                 291      38468   18436   12128   7657   6535   1892   1898   10930   9486   7106   114534   3.08
Hours           2474
Ave/hr          $6.75
Fringe          $1.53

Payroll/Line   $307,292
Overhead       $120,000
Utilities       $4,500




               17-Mar-11                                        Expo 2003                                           45
                                   Drums
• Visual Inspection: All OPC Drums are inspected for surface defects.
   Visual contaminants or defects lead to further testing and/or rejection.
   Record and compare “lot number” identification on boxes. Store OPCs
   in a designated area, mark the area well. Data base lot data.
• Electrical Properties: Electrical data provided by the vendor is
  compared to past data to confirm specification compliance. If a
  discrepancy appears or the data is inconsistent then contact the
  vendor for modification or specification change. Use print tests
  with your toner combination to determine the acceptability of
  the shipment.




      17-Mar-11                      Expo 2003                                46
Generic OPC Incoming Inspection checklist

            Check For:
            - Consistent Packaging
            - Product Verification
            - Sufficient gear attachment
            - Uniform glue pattern
            - even removal of coating on the margins
            - Consistent color and texture
            - Lightsafe packaging attached
            - Look for tape residue from packaging
            - Handle with care




17-Mar-11                      Expo 2003               47
PCR Incoming Inspection checklist
   Check For:
   - Consistent Packaging
   - Product Verification
   - Pin holes
   - Fish eyes
   - Coating Defects and/or contaminates
   - Unclean Contacts
   - Stains
   - Voids

   Rubber Gloves - required.
   Visual Inspection
   Q.C. Sample
   --if needed-- Cartridge fit and/or Print test


17-Mar-11                    Expo 2003             48
RM Material Incoming Inspection method

         Visual Inspection - Use Q.C. Sample or Photocopy

         Sample Destructive testing: ie: Split Seal

         1.   Strip backing from seal examine for consistent glue.
         2.   Press seal on clean, flat surface
         3.   Pull tab on seal.
         4.   Examine for uniform removal of material.
         5.   --if needed-- Cartridge fit and/or UPS test.




      17-Mar-11                        Expo 2003                     49
            Summary
• More than 15 individual items may be
  purchase for high quality cartridges today.
• Less than 20% of remanufacturers have
  established quality processes for their
  products.
• More than 500 remanufacturers will fail in
  the next year…. Because of quality.
• Less than 29% of the remanufactured
  cartridges sold last year met an OEM
  specification
• Lower Cost and higher profits will only be
  realized by executing a Total QMS system.



17-Mar-11               Expo 2003               50

								
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