The 2006 Fall Partners’ Meeting featured a new Student Internship Poster Competition where 2nd year MBA students prepared and presented posters describing their internship projects. Three top prizes of $500 were awarded after judging by partner companies. The poster competition was created to benefit both partners and students by accomplishing three main goals:
• Allow second year students the opportunity to market themselves to Partner executives by leveraging their summer experiences to speak in depth about a subject in which they have extensive knowledge.
• Demonstrate to Partner executives the caliber of work Krannert students produce and the types of projects students are excelling at within their summer internships as well as facilitating the exchange between the Partners and the students that they may be particularly interested in.
• Give first year students a chance to see which companies are good to work for and what types of projects interns complete. Also provides first year students exposure to a variety of topics of interest within industry.
Benchmarking of Chinese Forging Industry
Jie Chi – 2005 Summer Intern
American Axle and Manufacturing
1. Benchmark all aspects of the Chinese forging market
2. Identify possible business partnership/acquisition/ relationship within the Chinese forging market
• Develop personal understanding of AAM’s capability and business culture
– Visited 6 different plant locations in two divisions, Asian sourcing program, China Business Office, current suppliers
• Analysis of Chinese automotive forging market
– Automotive forging companies
– Analysis of other players in the supply chain
• Special Bar Quality (SBQ) steel suppliers
– 7-10 million tons of SBQ /Total 270+ million tons steel
• Identified 180+ automotive forging companies
• Interviewed 60 companies by phone
• Identified industry leaders based on Capability Rating and Partnership Candidate Rating
• Identified 6 steel mills potentially capable of producing SBQ
• Initiated AAM technical assessment with 3 steel mills in conjunction with corporate purchasing group
• Established relations with industrial organizations
• Established relations with equipment suppliers
• Presented findings to CEO and senior management team
Engineering Change Order Process
Brent Horrocks – Summer 2005 Supply Chain Intern
Honeywell Automated Control Solutions
In order to keep up with changing customer requirements and business conditions, Honeywell Engineering makes changes to the design of devices that Honeywell manufactures. When a change is made, the appropriate bills of materials must be updated, and inventories of components must be changed. This project is to design and place a new process for implementing an Engineering Change Order in Honeywell’s 5 Environmental Climate Control North America facilities.
1. Engineering Change Orders (ECO’s) must be implemented on a specific date or when changed component inventory is exhausted.
2. Bills of Materials (BOM’s) must be automatically updated to reflect ECO at the appropriate time. The BOM must reflect the correct cost for the active components. Changes to components on a BOM must not be reflected in item costs until the effective date has passed.
3. Released jobs must have the correct computer transactions used in order to avoid a materials variance.
4. MRP forecasts should adjust so that components that are being phased out are used up as much as possible before the ECO effective date. MRP forecasts should adjust so that components that are being phased are ordered in enough time so that there is some on-hand inventory before the effective date.
5. The Production Planner must be notified of a pending BOM change.
6. Inventory must be controlled so that old components are moved or scrapped to prevent their unintended use.
7. Components that are obsolete and are no longer used by any Honeywell location should be scrapped.
The ECO process was implemented and validated to be effective. The estimated savings are over $120,000 in inventory costs per year per work site.
Axle Assembly Capacity
Howard G. Nelson – Summer 2005 Intern
American Axle & Manufacturing
Our strategy was to leverage our installed capacity by increasing production at marginal cost through selective investment. This, combined with our geographic advantage would help offset our labor cost disadvantage to allow us to competitively quote new business. Specifically, our goal was to increase capacity from 820 to 1,100 units per day in straight-time, while reducing operating costs sufficiently to justify capital investment at existing volumes.
Achieved understanding of product and manufacturing process
• Worked in various stations of assembly lines and observed all processes
• Created elemental work flow diagrams for entire assembly process
• Simulated existing process to analyze process variability and constraints on system throughput
Developed process strategy
• Reduce station content (based on simulation results)
• Reduce process variability and reduce labor requirements through selective automation
• Buffer around unavoidable variability
Created new process design
• Created new process work flow diagrams, physical layouts, capital requirements
• Increased process stations, increased buffer stations, added automation
• Simulated new process
• Minimized capital requirements (ongoing throughout design) to achieve goal
• Created implementation plan – incremental, minimizing disruption to production
• Operating cost comparison: reduction in labor cost at current demand, savings increase with additional volume
• Financial return: IRR at current demand, IRR at capacity.
• Sensitivity analysis performed to demand and capital cost
The project should be implemented to achieve the strategic goal of increased capacity at reduced cost to allow competitive new business quotes. The project provides a positive financial return even at current volumes.
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