What’s Wrong withThis Picture?

An interactive discussion of production challenges

PDH Code: 21243

Industry Overview- YOUR Company’s goals

Your Company is in business to generate a PROFIT.Profits allow your company to:

A) Create net worth / building capital by Retaining Earnings or providing distributions to Company owners. Return on Invested Capital

B) Retire DebtC) Invest in new equipment (Increase Capacity) or replace oldD) Improve Employee BenefitsE) Provide Pay Raises & Bonuses

All Employees need to understand how Profits are necessary!

Industry Overview- Common Problems

A. Antiquated Building LayoutsB. As companies have grown, they have added complexity that

wasn’t there at the beginning.C. Companies have created Complicated material flowsD. Industry has not Incorporated “Mfg” concepts from outsideE. Companies need to focus on simplifying the processesF. “Best Practices” get lost over time for an easier wayG. Often a Top Down Mgmt system instead of a bottom up approachH. Often there is no Productivity Program or Productivity Goals

Keys to a Productive Fabrication Company

1) Understand Your Type of Fabrication- Fast or Slow2) Shop & Office Coordination- Working Together as a Team3) Having a Production Plan for a project4) Efficient Shop Layout5) Focus on increasing Fitter’s & Welder’s UP TIME6) Staging Area7) Moving Material IN and Around the Shop8) Material Storage9) The Right Equipment & Technology - ROI

1. Understand Your Type of Fabrication Fast Or Slow

2. Shop & Office Coordination

The most efficient shops are with companies that understand that the shop is where you make or lose money.All departments in the “office” take Shop Productivity into consideration for their decision making.• Ownership & Management• Project Management• Purchasing• Detailing

3. Production Plan

Production Planning and Handoff Meetings are the most beneficial meetings you can have as a company.

Develop a Plan of attack for completing complex projects.

Where should the project be fabricated? Your Shop? Outsourced?Planning Fast and Slow items for arrival- Trusses – Beam / ColumnsContingency Planning- What If Planning- Sequences, Delays.

Industry Overview - Existing Fab Shops

Most fabrication shops were built 20, 40 or more years ago. New / Green Field Fab Shops are rare and are an expensive Capital Investment with a long ROI horizon over several business cycles.Existing Fab Shops have been added on in different directions creating flow problems.Equipment is often squeezed in between existing lines or “made to fit” a spot creating future “unforeseen” problems.Moving Equipment is expensive and causes loss of Production

Efficient Shop Layout- Reducing Material Handling

Material Handling adds ZERO value to your product! Every time someone moves a piece of steel, it costs you money. Eliminating “touches” = $$Top Ways to eliminate Material Handling:1) Equipment Layouts creating problems2) Moving material with Overhead Cranes3) Creating unnecessary stacks4) Turning Material5) Lack of a Staging Area6) Production & Organization of Detail Material7) Inventory Purchasing/ Receiving- arrival, location, projected8) Connections and flipping beams (Could you detail w/o flipping?)9) Loading Trailers

Efficient Shop Layout- My Own Mistakes

Efficient Shop Layout- My Own Mistakes

The Bad- My own Shop

Efficient Shop Layout- My Own Mistakes

Efficient Shop Layout – Dead Spaces, F&W, Cutoff Access

Efficient Shop Layout

Efficient Shop Layout

Efficient Shop Layout

The Standard / Common Layout- Equipment in Tandem

Exterior LoadingInterior Unloading

Efficient Shop Layout

The Standard / Common Layout- Equipment in Tandem

Efficient Shop Layout- Outside of the “Fab” Shop

C

BA

Efficient Shop Layout- Outside of the “Fab” Shop

B

A

Efficient Shop Layout- Outside of the “Fab” Shop

A

C

B

Efficient Shop Layout- Outside of the “Fab” Shop

Efficient Shop Layout- U Shaped Layout

Very Productive- Minimizes Space Requirements

Efficient Shop Layout- U Shaped Setup

Efficient Shop Layout- U Shaped Setup (Another Setup)

Case: Efficient Shop Layout- U Shaped Setup (Proposed)

Case: Efficient Shop Layout- U Shaped Setup (Prosed Application)

1) Doubles Available Fab Space!2) Eliminate 3 90 degree beam “turns”3) Beams aren’t Double moving in Storage Area4) Makes better use of Beam Storage Area

Focus on increasing Fitter’s and Welder’s UP TIME

In most shops- Fitters and Welders are the bottleneck.Maximize their UP time. How?1) Fitters/Welders should never move material2) They should never look for parts3) They should never go into the office to ask questions4) They should be given goals & expectations5) They should be incorporated into your productivity program6) Scribing Technology to Produce Layout Marks

Focus on increasing Fitter’s and Welder’s UP TIME

Focus on increasing Fitter’s and Welder’s UP TIME

Focus on increasing Fitter’s and Welder’s UP TIME

Focus on increasing Fitter’s and Welder’s UP TIME

Bar Code Feed Back of processes from released for production thru shipping

Focus on increasing Fitter’s and Welder’s UP TIME

Productivity- Staging Area

Productivity- Staging Area- Main Member, Parts & Drawing

Productivity- Staging Area- Main Member, Parts & Drawing

Fab Shop

Moving Material IN and Around the shop

Moving Material IN and Around the shop

Moving Material IN and Around the shop

Moving Material IN and Around the shop

Moving Material IN and Around the shop

Moving Material IN and Around the shop

Material Storage- Loading Trailers

Material Storage- Loading Trailers

Material Storage - Typical

Material Storage

Material Storage

The Right Equipment - Why do you buy Equipment?

Increase Real Estate / Shop CapacityConvert Man Hour labor to fixed costIncrease Productivity of each Shop Employee

Key Considerations-What is 85% of what you need the machine to do?What is your budget?What’s the calculated ROI?How long until the machine has paid for itself?

The Right Equipment – Plate Machines

The Right Equipment – Coping- 40% of fitting time

The Right Equipment – Coper: Which is right for you?

The Right Equipment- Galvanized Tags

The Right Equipment- Galvanized Tags

Productivity- Tools

Dual Slot Pyramid. Fits 3/8” and 1/2” Bar #79DA

Case: Efficient Shop Layout- What would I do differently?

PDH Code: 21243