ASCO Aerospace Canada - Business Consulting Project
|Project Client:||ASCO Aerospace Canada
|Project Description:||Review subcontract surface treatment flow
|Students:||Alexander Osipov, Prativa Thapa, and Chris Craxton
|BCIT Program:||Business Operations Management|
In the course of the manufacturing process, parts are sent to subcontractors for processing tasks such as heat treatment, priming and painting. The project scope was defined as the time from the product being cleared to ship by quality control, to when the product has returned, is once again cleared by quality control and is reintroduced back into the production flow. This part of the process is mainly concerned with the creating of documentation for subcontracting.
The project team was tasked with making the process faster (shorter lead time) and less labour consuming. Through interviews and data analysis, the project team determined that the main causes of inefficiencies were quality requirements regarding documentation of processes and inaccurate or incomplete information.
Analysis revealed that the current process is consuming 3,217 hours annually, involving at least 10 ten different people across multiple departments. The labour consumed is the equivalent of 1.6 full time people. Based on an average salary, this comes at an annual cost of $77,339.
The team recommended the implementation of three interdependent projects:
- Automation of document creation through ERP customizations
- The use of a web-based portal to communicate information with vendors
- Contracting a dedicated third party logistics provider
- Lead-time reduction of one day (50% of outbound process)
- In-process labour savings of 2,119 hours (68% reduction)
- In-process cost savings of $53,220 (68% reduction).