A major tobacco company faced a requirement for expanded bar-code marking of product boxes. Modifying the existing production line process would have required a very large investment and would have involved an interruption of production.
Alotech’s solution saves Alotech’s customer $0.56 per box which amounts to a savings of about $8, 000 per day. With a capital expense of $209,000, Alotech’s customer has a payback of 26 days. After the payback period, the customer will save almost $3 million per year.
Innovative Remanufacturing Solutions
Alotech takes pride in finding ways to improve our customer’s profits. Our talented manufacturing engineers look at processes from different perspectives and are not afraid to “think outside the box”.
One of our customers installed new springs in a remanufactured assembly because of quality concerns with the used springs. Alotech designed and built a cost-effective testing station that sorted used springs based on tension, and rejected all inferior springs.
Because of this innovative solution that had a total capital expenditure of $15,000, Alotech’s customer saves over $150,000 per year versus using new springs.
Production Solutions Reduce Injuries and Man-hours
One of Alotech’s remanufacturing customers used a manual process to remove rivets from an assembly. Not only was this a labor intensive process, but the customer experienced an average of 15 recordable injuries each year directly related to this process.
The customer subcontracted the process to Alotech and we were able to automate the process, reducing the labor time by 80 hours per week and, more importantly, reducing the annual OSHA reportable incidents from 15 to zero.
Industrial Process Reduces Labor Time and Environmental Impact
Alotech serves a remanufacturing customer who was cleaning used parts with a burn-off oven. This process produced exhaust air pollutants, created hazardous solid waste because of the concentrations of heavy metals, and required a 24-hour cooling off period before workers could handle the parts.
The customer outsourced this process to Alotech. Our engineers designed and installed a parts washing system that eliminated the air pollution, cut out the hazardous waste by dilution below the regulatory levels, and reduced the part cycle time from 24 hours to 15 minutes
Increased Remanufacturing Profit
One of Alotech’s key customers was experiencing low yields on its remanufactured product line because parts were being discarded because of cosmetic defects. To maintain production of its remanufactured assemblies, the customer was using a high percentage of new components, resulting in a profit margin of less than 9%.
Alotech’s engineers collaborated with the customer to develop a process that differentiates between cosmetic and functional defects. This resulted in a drastic improvement in yields and reduced the use of new parts in the remanufactured assemblies. The customer’s profit margin increased from 9% to 38% with no capital investment required. Alotech’s innovative solution was able to increase the customer’s annual profit by $366,000.
|Total Annual Savings
Adaptive Remanufacturing Solutions
One of the challenges of any remanufacturing program is the inability to control the quantity and type of incoming used parts (cores), from which a remanufactured product is made. Alotech has a customer for whom the type of incoming cores was a particular problem: a surplus of one type of core, and shortage of a second type.
Alotech devised a solution to this problem by developing a manufacturing process to adapt the surplus parts to meet the specification for the part that was in short supply.
This solution eliminated the customer’s need to substitute new parts for used, producing a savings of $64,000 per year with a one-time capital cost of $81,000.
We wish all our team members and customers a Happy Thanksgiving.
We give thanks to God that we live in a country where we are free to worship.
We thank the members of our military, past and present, for fighting to preserve our rights.
We are thankful for the opportunity to work and serve our customers.
We are thankful for being able to serve those less fortunate than ourselves.
Alotech designed and installed a new servo drive system for customer with major production line. With its HMI and menu of change over recipes, the system reduced production downtime during changes and saves the customer about $100k per change. With a cost of about $100k, this gave a one-day payback!
Alotech is pleased to announce it has passed its annual ISO 9001:2008 Surveillance Audit. In addition, our Goldston Facility is now covered under Alotech’s Quality Management System.
Alotech was one of sixteen organizations represented at a round table discussion with Congresswoman Ellmers on November 7th, 2013. Francis Chester, VP of Alotech, joined General Dan McNeill (US Army, retired) of The Logistics Company, LTC Tom Ryan and David Christ, of the Army Research Office, and others at the NCDBA office in Fayetteville, NC.
Discussion topics the FY2014 defense budget, Sequestration, and the possibility of a joint meeting in Washington DC between NC defense industry leaders and the NC Congressional Delegation. The goal of this meeting will be to expand the share of military contracts for NC companies.
LTG Joseph Anderson, Commanding General, XVIII Airborne Corps and Fort Bragg, invited Sanford-based defense contractor and manufacturer Alotech to be one of 26 organizations to attend the Leadership Bragg event on Monday, 4 NOV 13.
Francis Chester represented Alotech during the all-day event that included: a group breakfast with senior leaders; a XVIII Airborne Corps and Fort Bragg Command Briefing; moderated discussion on Leadership; tour of the Virtual Training Facility; lunch with soldiers of the 82nd Combat Aviation Brigade; and, a demonstration at the Aerial Gunnery Range.
Jimmy Kirik, the son of Alotech’s production manager Rich Kirik, was featured in a recent front-page Sanford Herald article. Jimmy is a local high school senior and a pioneer in the two-year Caterpillar Youth Apprentice Program in welding. At the conclusion of this course, Jimmy will have earned a high school diploma, Basic Welding Certificate, OSHA Safety Card and Career Readiness Credential from CCCC and a NCDOL certificate for completion of the apprentice program.
“The Caterpillar Youth Apprentice Program in welding is one of the great success stories of educating America’s young people in the skills of 21st century high-tech manufacturing.” said Bud Merchant, president of Central Carolina Community College.
Jimmy plans to combine his work experience with university studies to follow in his dad’s footsteps as a mechanical engineer.
Alotech was well represented at the recent SolidWorks 2014 Launch Event at Research Triangle Park with five of our staff present for the one day workshop. Ron Weavil and his team from ModernTech did a great job introducing the many features of the new SolidWorks version.
Alotech is able to combine the applications of SolidWorks with our 3-D scanner software, and our CamWorks software channel for direct part production using our CNC machines.