CASE STUDY NO. 9630
KEY WORDS REFRIGERATOR PANS, SCRAP REDUCTION
Whirlpool Corporation
5401 U.S. Highway 41 North
Evansville, IN 47727-0001
Contact: Sherry Bugg, Quality Team Leader, Quality Engineer. Tel: 812-426-4218.
Summary
Teamwork leads to a reduction of the scrap rate associated with handling of refrigerator crisper and meat pans, saving Whirlpool $473,000 a year.
Action
The Whirlpool Evansville Division is a major manufacturer of domestic household refrigerators for the North American market. This project began after in-house scrap costs and assembly line rejection rates for the injection molded vegetable pan were found to be excessive. A 20-member quality team was established resulting in a number of changes to a system that had been in place for more than 20 years.
Improvements affected such areas as updating quality systems, defining quality visual standards, and defining an optimal packaging scenario. Initially, an audit was completed of scrap parts from the assembly line. Pareto analysis reflected improper quality standards, incorrect operator handling, inappropriate packaging, etc. Based on this audit, yearly total scrap costs of $207,800 were forecast if no corrective action were taken.
Pans were found to have been nested on their side, then stacked on skids to such height that the accumulated weight caused warping. Improperly sized and configured skids resulted in damage during skid movement and scratching of pan surfaces.
Improvements implemented included the use of properly sized plastic skids rather than wooden skids, and the introduction of polyethylene separator sheets and corrugated sleeves to eliminate pan scratching and warpage. Damage during skid movement was reduced 90%; skid pack capacity was improved 90%.
Whirlpool notes that this problem was solved by a cross-functional team. Initially, no one wanted to try a new packaging scenario. However, the team continually strived to define optimal packaging requirements of all partners in the process, earning the support and commitment of all participants.
Payback
Whirlpool estimated the first-year benefits, all inclusive, at $473,401. The internal rate of return was 70.23% with a payback period of 2 years. The scrap rate was reduced 64.9%, or $60,000 per year in savings.
Other Benefits
