Cost Improvement EPIC

Integrating technology providers into the cost improvement plan

E.P.I.C. Inc.EPICPWR.COM

An Action Plan For

The Automotive Industry

Presented & Prepared byJason Gallion

A budget and planning proposal

Let’s go beyond traditional methods in which

others generate cost reduction techniques.

2010 6-Year forecast 2016

Piece Price Reduction

It’s time to go beyond even the most advanced

supplier collaboration and innovative models and

invite strategic innovation opportunities

Forecast data

ROI Presentation

Identified opportunities

Project Planning

Innovative Technology

Welding &

Drilling

Solutions

Advanced

materials

OEM & their

SuppliersOpportunities

Solutions

Process Control

Solutions

The OEM Supplier Relationship

The Purpose is to fund innovation through mutual

benefits.

The Objective is the alignment of cost reduction Technology and

cost improvement requirements.

The Mission is to provide new cost improvement opportunities.

4

Mandatory 3% annual cost reduction

Supplier

Supplier Supplier

OEM

$96 Million Annually

47 Suppliers

47 suppliers$3.2 Billion Annual Sales$96 Million Annual cost reduction$27 Million Annual expenditures

To meet the OEM’s cost reduction requirements, 47 suppliers will reduce their

annual sales by 3%

Approximately *$27 Millionallocated to meet the demand.

*$27M Allocated to cost improvement

projects

$96M Cost reduction

*Based on average cost improvement projects recorded during supplier survey

6

Min. Effort

Req’d Result

Effort vs. Result

OEM’s influence

8

Influence on process improvement... little with capital investment

Existing collaboration relationships limited to process improvement. Even today, some suppliers resist or are reluctant to embrace influence from OEM

-Δ% Cost

Reduction

Target

OEM’s Problem…

Supplier

Base

Condition

Suppliers

individual

effort

9

Solution Categories:Raw Materials

Material processingMachiningAssembly

Packaging / TransportationTooling & Capital

Inspection & Testing

The Assured Cost Improvement Plan

10

“We must begin to collaborate at an even greater level to

achieve momentous cost reduction goals.”

• Supplier Survey

• Use forecast data…To, and when to consider three year forecast and six year forecast

• Required cost reduction items

• Create piece price reduction targets

What you need to do…

11

Supplier

Supplier Supplier

Supplier

Supplier

3% Mandatory

Cost Reduction

Cost reduction

Met with actual cost improvement projects

Current State… The goal

The Goal

Supplier

12

The cost improvement platform

Forecast data

ROI Presentation


Project Planning

Solution Categories:Raw Materials

Material processingMachiningAssembly

Packaging / TransportationTooling & Capital


Innovative Technology

Welding &

Drilling

Solutions

High temp

insulation

materials

OEM & their

Suppliers

Cost Improvement

OpportunitiesTechnology Providers

Cost reduction

requirements

Opportunities

Solutions

Process Control

Solutions

13

Supplier SurveyBased on annual cost improvement requirements an estimated $27 million should be allocated towards cost improvement expenditures, to meet the annual 3% cost reduction.

14

Supplier survey, data intelligence

15

Forecast Data, 3-6 Year Plan

16

BPT Long Term Plan

ATM Summary Americas Mid-Term Supply Plan 10-1-071410

Part Daily Averages

KNT KD L4 L4 CRV

BPT L4

RDX 2WD

RDX 4WD

BPT 4Axis TL 4WD

TL 2WD

ODY

MDX

RIDGELINE

Accord V6

Accord V6 ( X-O ) 4WD


Acura V6 ( X-O )

Pilot 4WD

Pilot 2WD

BPT 6AT

BPT M/S & S/S

Total

BPT

Counter

Shaft

Input Shaft

308 162

1432 1600 1400

2919 2794

110 87 87 85 85

T/S Total 144 280 605 954 1614

0

CR-V 4WD

M/S & S/S Total 5AT & 6AT

154 154

1563 1853

0 0

0 000

6AT

R97 C/S

RWE C/S

0

0

209

0 0

0 0 0

RWE Counter Shaft 0

R97 Counter Shaft

6AT Total

ODY 6AT 6AT

B

4Axis BPT total

1292 911

2174

3085 1569

3365

B

B

B

151

326

290 297 267

944

000

973

617 631

122122 120124

1263

29

50

117108

71

277

422

65 63

74

234 271

0 2919 2794

0

0 1327 1242

218 208

6778

176

1450 1508

313

1545

1195 1223

144

1519

3404

300

167

1592

2680

3260

162

85 Ki 08-09M

1st 2nd

124 120

86 Ki 09-10M

1st 2nd 1st

87Ki 10-11M

1st 2nd 2nd

318

0

1241 1088 1741

310

25

465

0

88

0 0

84

2011

0 0 1656 1553

1st

304

89

476

1540

2012

568 727

1289

0

821

88 Ki 11-12M

2nd

Total Counter Shaft

M/S & S/S Total 5AT

DAYS

B

B

B

L4 CR-V 4WD (BPT Localize)

2680

2008

0

2009 2010

89 Ki 12-13M

289281

0

686

122 122

646

0

0

0

1154 0

0 0

323

36

410

102 102

44 44

1545

24

342

50 98

0

89

281

0

108

13

87

456483

33

0

00

0

327 327

134 132

467

280 605

73 73

171 155

86

1159

B

B

B

B

( L4 total )

L4 Element

L4 Accord

L4 CR-V 2WD

L4 Acc CT 2WD

B

B

122 122

131

101 89

86

0 0

364 351

774 746

0 0

43 43

102 102

0 0

449 436

523

259 259

0 0

33 205

85 85

69 69

76 76

370 370

169 156

314 290

954 1614

1236 676

147 635

1685 1112

1039 446

27262639

2013

91 Ki 14-15M

1st 2nd

90 Ki 13-14M

1st 2nd

122 122

0 0

0 0

0 0

2014

0 0

0 0

0 0RV2A Counter Shaft 327 370 1253

1211I/S TotalAccord CVT 1220 1369

0

BPT Long Term Plan


Part Daily Averages

KNT KD L4 L4 CRV

BPT L4

RDX 2WD

RDX 4WD

BPT 4Axis TL 4WD

TL 2WD

ODY

MDX

RIDGELINE

Accord V6



Acura V6 ( X-O )

Pilot 4WD

Pilot 2WD

BPT 6AT

BPT M/S & S/S

Total

BPT

Counter

Shaft

Input Shaft

308 162

1432 1600 1400

2919 2794

110 87 87 85 85

T/S Total 144 280 605 954 1614

0

CR-V 4WD


154 154

1563 1853

0 0

0 000

6AT

R97 C/S

RWE C/S

0

0

209

0 0

0 0 0

RWE Counter Shaft 0

R97 Counter Shaft

6AT Total

ODY 6AT 6AT

B

4Axis BPT total

1292 911

2174

3085 1569

3365

B

B

B

151

326

290 297 267

944

000

973

617 631

122122 120124

1263

29

50

117108

71

277

422

65 63

74

234 271

0 2919 2794

0

0 1327 1242

218 208

6778

176

1450 1508

313

1545

1195 1223

144

1519

3404

300

167

1592

2680

3260

162

85 Ki 08-09M

1st 2nd

124 120

86 Ki 09-10M

1st 2nd 1st

87Ki 10-11M

1st 2nd 2nd

318

0

1241 1088 1741

310

25

465

0

88

0 0

84

2011

0 0 1656 1553

1st

304

89

476

1540

2012

568 727

1289

0

821

88 Ki 11-12M

2nd

Total Counter Shaft

M/S & S/S Total 5AT

DAYS

B

B

B


2680

2008

0

2009 2010

89 Ki 12-13M

289281

0

686

122 122

646

0

0

0

1154 0

0 0

323

36

410

102 102

44 44

1545

24

342

50 98

0

89

281

0

108

13

87

456483

33

0

00

0

327 327

134 132

467

280 605

73 73

171 155

86

1159

B

B

B

B

( L4 total )

L4 Element

L4 Accord

L4 CR-V 2WD

L4 Acc CT 2WD

B

B

122 122

131

101 89

86

0 0

364 351

774 746

0 0

43 43

102 102

0 0

449 436

523

259 259

0 0

33 205

85 85

69 69

76 76

370 370

169 156

314 290

954 1614

1236 676

147 635

1685 1112

1039 446

27262639

2013

91 Ki 14-15M

1st 2nd

90 Ki 13-14M

1st 2nd

122 122

0 0

0 0

0 0

2014

0 0

0 0



0

Expected parts to Mfg every year,

production forecast

ROI Calculations

17

KNT US KNT US KNT US KNT US KNT US KNT US

¥12,500 $7,600.00 ¥0 $7,600.00 ¥12,500 $7,600.00 ¥0 $7,600.00 ¥25,000 $3,800.00 ¥0 $3,800.00

¥152,200 $2,492.00 ¥109,620 $2,492.00 ¥152,200 $2,634.00 ¥108,700 $2,270.00 ¥153,000 $2,362.00 ¥166,800 $2,362.00

¥182,640 - ¥131,544 - ¥182,640 - ¥130,440 - ¥183,600 - ¥200,160 -

$2,200.49 $1,584.87 $2,200.49 $1,571.57 $2,212.05 $2,411.57

￥83/$ ￥83/$ ￥83/$ ￥83/$ ￥83/$ ￥83/$

175 180 218 220 175 200 218 220 195 200 198 200

Total　Charges 101charge 98charge 81charge 80charge 101charge 88charge 81charge 80charge 91charge 88charge 89charge 88charge

RWE 185,318

8 8 8 8 8 8 8 8 8 8 8 8

$17,754.46 $27,536.00 $12,678.94 $27,536.00 $17,754.46 $28,672.00 $12,572.53 $25,760.00 $17,997.59 $22,696.00 $19,292.53 $22,696.00Total　Charges 231charge 224charge 185charge 184charge 231charge 202charge 185charge 184charge 207charge 202charge 204charge 202charge

RWE 187,880

0 0 0 0 0 0 0 0 0 0 0 0

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Total　Charges 498charge 484charge 400charge 396charge 498charge 436charge 400charge 396charge 447charge 436charge 440charge 436charge

141,398

5 4 2 2 5 3 2 2 3 3 3 3


RWE 150,792

7 7 6 6 7 6 6 6 7 6 7 6


RWE 82,472

13 13 11 10 13 12 11 10 12 12 11 12


RWE 0

3 0 2 0 3 0 2 0 3 0 3 0

$6,601.45 $0.00 $3,169.73 $0.00 $6,601.45 $0.00 $3,143.13 $0.00 $6,636.14 $0.00 $7,234.70 $0.00Total　Charges 1255charge 1220charge 1008charge 999charge 1255charge 1098charge 1008charge 999charge 1127charge 1098charge 1110charge 1098charge

RWE 0

3 0 3 0 3 0 3 0 3 0 3 0


RWE 0

7 0 5 0 5 0 5 0 5 0 5 0


RWE 0

7 0 6 0 7 0 6 0 7 0 7 0

$15,403.37 $0.00 $9,509.20 $0.00 $15,403.37 $0.00 $9,429.40 $0.00 $15,484.34 $0.00 $16,880.96 $0.00

ACTUAL RCL M/S PRP S/S RWE M/S RWE S/S

NORMALIZE $0.1940 $0.0720 $0.0570 $0.2670

CARBURIZE $0.3470 $0.0980 $0.0800 $0.33702012　2nd～2015　2nd

TOTAL　COST

*Repair j ig of KANETA timing are every 50 charges . Repair cost of one time need $295 .

*Production　number　after　2014　1st　are　forecast

*KNT　JIG　of　life　are　200　charges　.　US　JIG　of　target life　are　400　charges　（actual　result is 212 charges　for　wheel　spindle .

　These have some cruck . But we can still use if fix .)

JIG made　by KANETA are -5pcs of capacity for Normalize j ig

JIG made　by KANETA are -2pcs of capacity for Carborize j ig

So US JIG can reduce charge times . But those cost are not include .

$65,306.02 $0.00

$82,110.65 $0.00

$145,005.11 $168,312.00

$33,386.60 $0.00

$36,543.04 $0.00

$0.00 $0.00

$42,188.53 $41,566.00

$82,110.65 $90,164.00

NEW　JIG　INSTALL　COST

KNT US

$98,050.51 $154,896.00

$0.0338 $0.0709 $0.0519

*THIS NUMBER ARE ACTUAL JIG COST BY JUNE,2010 . NOT INCLUDE REPAIR JIG COST.*CAST JIG WILL MAKE JIG COST DOWN.

$0.0392 $0.0478 $0.0771

$0.0437$0.0889

$0.1614 $0.0665

JIG COST/pc

JIG COST/pc

JIG COST/pc

JIG COST/pc

JIG COST

NEED　JIG QTY

$0.0376$0.0870$0.0568$0.0608

$0.1189

$0.0535

$0.0744

$0.0464 $0.0520 $0.1309

$0.0698 $0.0977 $0.0425

$0.1367

$0.1271 $0.0916 $0.0619

$0.1240$0.0986$0.0739

$0.1294 $0.1495 $0.0573 $0.1519 $0.1404

$0.0984$0.1141$0.0488$0.1169$0.0907

$0.1555$0.1068

$0.0985

$0.1794

$0.1597 $0.1697 $0.0980

$0.1741$0.1681$0.1023

$0.2012 $0.2054

$0.1557$0.1715$0.0464$0.1598

$0.3921

$0.2166 $0.2586 $0.1235 $0.2243 $0.2166 $0.0554 $0.1226 $0.2090 $0.1882

$1.2919

$0.3220 $0.4757 $0.2292 $0.4757 $0.3220 $0.0665 $0.2274 $0.4450 $0.3262

$1.01 $1.5674 $0.7217 $1.5674 $1.0106 $1.6321 $0.7156 $1.4663

$0.0553

JIG COST/pc

JIG COST/pc

2015

2nd

NEED　JIG QTY

6AT

$0.0617$0.0515

$0.0759

JIG COST

2013

2nd

1st

JIG COST

JIG COST

232,416

NEED　JIG QTY

2014

JIG COST/pc

JIG COST/pc

NEED　JIG QTY

1st

6AT

2nd

6AT

Third　Shaft

CarborizeCarborize Normalize Carborize Normalize

Main　Shaft Secoundary　Shaft

Normalize

Renewal of j ig to reaching life(200charges)

Shipping(include item)

NEED　JIG QTY

JIG COST

2012

NEED　JIG QTY

ProductionNumber

1st

JIG COST

Jig+Tray/1set

cast　die price

137,376

$0.0627JIG COST/pc

6AT

JIG COST

$0.1379

$0.1321

1st

Red mark are Jig cost higer

219,600

219,600

219,600

NEED　JIG QTY

JIG COST

NEED　JIG QTY

JIG COST

219,600

$0.0493 $0.0683

6AT

6AT

6AT

6AT

$0.1946

$0.1406

$0.0799$0.0567

87,120

NEED　JIG QTY

2nd

17,568

unit　jig　price(not　include　cast　die　cost)

$0.1032

2nd

2011

40,320

US JIGGET COST

DOWN

$6,185

$16,270

$26,755

$29,300

($56,845)

($5,332)

$0.0953 $0.0758

$0.0616$0.0810

$135,662

【Jig cost analysis】

$32,623

$37,604

$49,102

$1.0245 $1.2919 $1.0982

$0.0526 $0.3486

$0.0452

If we use US jig for every parts,we will get this number cost down.


¥12,500 $7,600.00 ¥0 $7,600.00 ¥12,500 $7,600.00 ¥0 $7,600.00 ¥25,000 $3,800.00 ¥0 $3,800.00

¥152,200 $2,492.00 ¥109,620 $2,492.00 ¥152,200 $2,634.00 ¥108,700 $2,270.00 ¥153,000 $2,362.00 ¥166,800 $2,362.00

¥182,640 - ¥131,544 - ¥182,640 - ¥130,440 - ¥183,600 - ¥200,160 -

$2,200.49 $1,584.87 $2,200.49 $1,571.57 $2,212.05 $2,411.57

￥83/$ ￥83/$ ￥83/$ ￥83/$ ￥83/$ ￥83/$

175 180 218 220 175 200 218 220 195 200 198 200


RWE 185,318

8 8 8 8 8 8 8 8 8 8 8 8


RWE 187,880

0 0 0 0 0 0 0 0 0 0 0 0


141,398

5 4 2 2 5 3 2 2 3 3 3 3


RWE 150,792

7 7 6 6 7 6 6 6 7 6 7 6


RWE 82,472

13 13 11 10 13 12 11 10 12 12 11 12


RWE 0

3 0 2 0 3 0 2 0 3 0 3 0


RWE 0

3 0 3 0 3 0 3 0 3 0 3 0


RWE 0

7 0 5 0 5 0 5 0 5 0 5 0


RWE 0

7 0 6 0 7 0 6 0 7 0 7 0

$15,403.37 $0.00 $9,509.20 $0.00 $15,403.37 $0.00 $9,429.40 $0.00 $15,484.34 $0.00 $16,880.96 $0.00


NORMALIZE $0.1940 $0.0720 $0.0570 $0.2670

CARBURIZE $0.3470 $0.0980 $0.0800 $0.33702012　2nd～2015　2nd

TOTAL　COST








$65,306.02 $0.00

$82,110.65 $0.00

$145,005.11 $168,312.00

$33,386.60 $0.00

$36,543.04 $0.00

$0.00 $0.00

$42,188.53 $41,566.00

$82,110.65 $90,164.00


KNT US

$98,050.51 $154,896.00

$0.0338 $0.0709 $0.0519


$0.0392 $0.0478 $0.0771

$0.0437$0.0889

$0.1614 $0.0665

JIG COST/pc

JIG COST/pc

JIG COST/pc

JIG COST/pc

JIG COST

NEED　JIG QTY

$0.0376$0.0870$0.0568$0.0608

$0.1189

$0.0535

$0.0744

$0.0464 $0.0520 $0.1309

$0.0698 $0.0977 $0.0425

$0.1367

$0.1271 $0.0916 $0.0619

$0.1240$0.0986$0.0739

$0.1294 $0.1495 $0.0573 $0.1519 $0.1404

$0.0984$0.1141$0.0488$0.1169$0.0907

$0.1555$0.1068

$0.0985

$0.1794

$0.1597 $0.1697 $0.0980

$0.1741$0.1681$0.1023

$0.2012 $0.2054

$0.1557$0.1715$0.0464$0.1598

$0.3921

$0.2166 $0.2586 $0.1235 $0.2243 $0.2166 $0.0554 $0.1226 $0.2090 $0.1882

$1.2919

$0.3220 $0.4757 $0.2292 $0.4757 $0.3220 $0.0665 $0.2274 $0.4450 $0.3262

$1.01 $1.5674 $0.7217 $1.5674 $1.0106 $1.6321 $0.7156 $1.4663

$0.0553

JIG COST/pc

JIG COST/pc

2015

2nd

NEED　JIG QTY

6AT

$0.0617$0.0515

$0.0759

JIG COST

2013

2nd

1st

JIG COST

JIG COST

232,416

NEED　JIG QTY

2014

JIG COST/pc

JIG COST/pc

NEED　JIG QTY

1st

6AT

2nd

6AT

Third　Shaft



Normalize



NEED　JIG QTY

JIG COST

2012

NEED　JIG QTY

ProductionNumber

1st

JIG COST

Jig+Tray/1set

cast　die price

137,376

$0.0627JIG COST/pc

6AT

JIG COST

$0.1379

$0.1321

1st


219,600

219,600

219,600

NEED　JIG QTY

JIG COST

NEED　JIG QTY

JIG COST

219,600

$0.0493 $0.0683

6AT

6AT

6AT

6AT

$0.1946

$0.1406

$0.0799$0.0567

87,120

NEED　JIG QTY

2nd

17,568


$0.1032

2nd

2011

40,320

US JIGGET COST

DOWN

$6,185

$16,270

$26,755

$29,300

($56,845)

($5,332)

$0.0953 $0.0758

$0.0616$0.0810

$135,662


$32,623

$37,604

$49,102

$1.0245 $1.2919 $1.0982

$0.0526 $0.3486

$0.0452


A complex ROI calculation represents changing part types from old model to new model

Idea Annual Impact ($) Idea Item Annual Impact ($)

Reduce gas and electric usage HT Process

Change to SCR type contactors

Reduce Cycle time T/S Lathes 3 4000.00 T/S Cycle time 20000.00

Reduce Cycle time T/S Oil Hole 3000.00 T/S Cycle time 16000.00

Replace Tool checkers with BK micro 0.00 Tool checker 40000.00

Reduce power costs 0.00 Energy

Reduce power costs 0.00 Energy

Rust issue at HPPG

Internal tool grinding (90% Complete) 21000.00 Tool Grinding Energy 63000.00

Replace plant lighting with T-5 Plant Lighting Energy 30000.00

Reduce tooling cost Increase tool life

Ttl. Potential $28,000.00 $169,000.00

Ttl. Sales $/yr $42,000,000.00 $40,000,000.00

0.1% 0.4%

7Investment

(Tooling & Capital)

Ttl. Potential

Ttl. Sales $/yr

6

Lo

gis

tics Packaging

Transportation

3

Mach

ine P

roc.

4

Assem

bly

Area

88KI (4/11 ~ 3/12) 89Ki Activity (4/12 ~ 3/13)

Supplier planned cost improvement action items

18

Supplier Name:Bucyrus Precision Tech, Inc. Originator: Tad Shealy

Part Name: M/S, S/S, T/S Date: 5/13/2011

Item No. Idea Annual Impact ($) Idea ItemAnnual Impact

($)Idea Item

Annual Impact

($)

Localize M/S & S/S Coil Reduce import costs Localize Coil



Reduce Cycle time T/S Lathes 3 4000.00 T/S Cycle time 20000.00 T/S Cycle time 70000.00

Reduce Cycle time T/S Oil Hole 3000.00 T/S Cycle time 16000.00 T/S Cycle time 50000.00

Replace Tool checkers with BK micro 0.00 Tool checker 40000.00 Tool Checker 40000.00

Reduce power costs - Solar 0.00 Solar Power Solar Power

Reduce power costs - Wind 0.00 Wind Power Wind Power

JSPS supply small parts in bulk

instead of daily lot supply

Rust issue at HPPG

Internal tool grinding (90% Complete) 21000.00 Tool Grinding Energy 63000.00 Tool Grinding Energy 63000.00

Replace plant lighting with T-5 Plant Lighting Energy 30000.00 Plant lighting Energy 30000.00


Ttl. Potential $28,000.00 Ttl. Potential $169,000.00 Ttl. Potential $253,000.00

Ttl. Sales $/yr $42,000,000.00 Ttl. Sales $/yr $40,000,000.00 Ttl. Sales $/yr $45,000,000.00

0.1% 0.4% 0.6%

S.G.A.P.

Investment

(Tooling & Capital)


Purchased

Components

Lo

gis

tics Packaging

Transportation

90Ki Activity (4/13 ~ 3/14)

Raw Material

Mach

ine P

roc.

Fo

rgin

gA

ssem

bly

Summary Page 11th Mid-Term Cost Improvement Plan

Area Item

88KI (4/11 ~ 3/12) 89Ki Activity (4/12 ~ 3/13)

Scheduled action items and $$ amount of impact

Identified

opportunity

gaps

Identified Cost Reduction Opportunities – planning

19

Data Integration =

20

2010 6-Year forecast 2016

BPT Long Term Plan


Part Daily Averages

KNT KD L4 L4 CRV

BPT L4

RDX 2WD

RDX 4WD

BPT 4Axis TL 4WD

TL 2WD

ODY

MDX

RIDGELINE

Accord V6



Acura V6 ( X-O )

Pilot 4WD

Pilot 2WD

BPT 6AT

BPT M/S & S/S

Total

BPT

Counter

Shaft

Input Shaft

308 162

1432 1600 1400

2919 2794

110 87 87 85 85

T/S Total 144 280 605 954 1614

0

CR-V 4WD


154 154

1563 1853

0 0

0 000

6AT

R97 C/S

RWE C/S

0

0

209

0 0

0 0 0

RWE Counter Shaft 0

R97 Counter Shaft

6AT Total

ODY 6AT 6AT

B

4Axis BPT total

1292 911

2174

3085 1569

3365

B

B

B

151

326

290 297 267

944

000

973

617 631

122122 120124

1263

29

50

117108

71

277

422

65 63

74

234 271

0 2919 2794

0

0 1327 1242

218 208

6778

176

1450 1508

313

1545

1195 1223

144

1519

3404

300

167

1592

2680

3260

162

85 Ki 08-09M

1st 2nd

124 120

86 Ki 09-10M

1st 2nd 1st

87Ki 10-11M

1st 2nd 2nd

318

0

1241 1088 1741

310

25

465

0

88

0 0

84

2011

0 0 1656 1553

1st

304

89

476

1540

2012

568 727

1289

0

821

88 Ki 11-12M

2nd

Total Counter Shaft

M/S & S/S Total 5AT

DAYS

B

B

B


2680

2008

0

2009 2010

89 Ki 12-13M

289281

0

686

122 122

646

0

0

0

1154 0

0 0

323

36

410

102 102

44 44

1545

24

342

50 98

0

89

281

0

108

13

87

456483

33

0

00

0

327 327

134 132

467

280 605

73 73

171 155

86

1159

B

B

B

B

( L4 total )

L4 Element

L4 Accord

L4 CR-V 2WD

L4 Acc CT 2WD

B

B

122 122

131

101 89

86

0 0

364 351

774 746

0 0

43 43

102 102

0 0

449 436

523

259 259

0 0

33 205

85 85

69 69

76 76

370 370

169 156

314 290

954 1614

1236 676

147 635

1685 1112

1039 446

27262639

2013

91 Ki 14-15M

1st 2nd

90 Ki 13-14M

1st 2nd

122 122

0 0

0 0

0 0

2014

0 0

0 0



0


¥12,500 $7,600.00 ¥0 $7,600.00 ¥12,500 $7,600.00 ¥0 $7,600.00 ¥25,000 $3,800.00 ¥0 $3,800.00

¥152,200 $2,492.00 ¥109,620 $2,492.00 ¥152,200 $2,634.00 ¥108,700 $2,270.00 ¥153,000 $2,362.00 ¥166,800 $2,362.00

¥182,640 - ¥131,544 - ¥182,640 - ¥130,440 - ¥183,600 - ¥200,160 -

$2,200.49 $1,584.87 $2,200.49 $1,571.57 $2,212.05 $2,411.57

￥83/$ ￥83/$ ￥83/$ ￥83/$ ￥83/$ ￥83/$

175 180 218 220 175 200 218 220 195 200 198 200


RWE 185,318

8 8 8 8 8 8 8 8 8 8 8 8


RWE 187,880

0 0 0 0 0 0 0 0 0 0 0 0


141,398

5 4 2 2 5 3 2 2 3 3 3 3


RWE 150,792

7 7 6 6 7 6 6 6 7 6 7 6


RWE 82,472

13 13 11 10 13 12 11 10 12 12 11 12


RWE 0

3 0 2 0 3 0 2 0 3 0 3 0


RWE 0

3 0 3 0 3 0 3 0 3 0 3 0


RWE 0

7 0 5 0 5 0 5 0 5 0 5 0


RWE 0

7 0 6 0 7 0 6 0 7 0 7 0

$15,403.37 $0.00 $9,509.20 $0.00 $15,403.37 $0.00 $9,429.40 $0.00 $15,484.34 $0.00 $16,880.96 $0.00


NORMALIZE $0.1940 $0.0720 $0.0570 $0.2670

CARBURIZE $0.3470 $0.0980 $0.0800 $0.33702012　2nd～2015　2nd

TOTAL　COST








$65,306.02 $0.00

$82,110.65 $0.00

$145,005.11 $168,312.00

$33,386.60 $0.00

$36,543.04 $0.00

$0.00 $0.00

$42,188.53 $41,566.00

$82,110.65 $90,164.00


KNT US

$98,050.51 $154,896.00

$0.0338 $0.0709 $0.0519


$0.0392 $0.0478 $0.0771

$0.0437$0.0889

$0.1614 $0.0665

JIG COST/pc

JIG COST/pc

JIG COST/pc

JIG COST/pc

JIG COST

NEED　JIG QTY

$0.0376$0.0870$0.0568$0.0608

$0.1189

$0.0535

$0.0744

$0.0464 $0.0520 $0.1309

$0.0698 $0.0977 $0.0425

$0.1367

$0.1271 $0.0916 $0.0619

$0.1240$0.0986$0.0739

$0.1294 $0.1495 $0.0573 $0.1519 $0.1404

$0.0984$0.1141$0.0488$0.1169$0.0907

$0.1555$0.1068

$0.0985

$0.1794

$0.1597 $0.1697 $0.0980

$0.1741$0.1681$0.1023

$0.2012 $0.2054

$0.1557$0.1715$0.0464$0.1598

$0.3921

$0.2166 $0.2586 $0.1235 $0.2243 $0.2166 $0.0554 $0.1226 $0.2090 $0.1882

$1.2919

$0.3220 $0.4757 $0.2292 $0.4757 $0.3220 $0.0665 $0.2274 $0.4450 $0.3262

$1.01 $1.5674 $0.7217 $1.5674 $1.0106 $1.6321 $0.7156 $1.4663

$0.0553

JIG COST/pc

JIG COST/pc

2015

2nd

NEED　JIG QTY

6AT

$0.0617$0.0515

$0.0759

JIG COST

2013

2nd

1st

JIG COST

JIG COST

232,416

NEED　JIG QTY

2014

JIG COST/pc

JIG COST/pc

NEED　JIG QTY

1st

6AT

2nd

6AT

Third　Shaft



Normalize



NEED　JIG QTY

JIG COST

2012

NEED　JIG QTY

ProductionNumber

1st

JIG COST

Jig+Tray/1set

cast　die price

137,376

$0.0627JIG COST/pc

6AT

JIG COST

$0.1379

$0.1321

1st


219,600

219,600

219,600

NEED　JIG QTY

JIG COST

NEED　JIG QTY

JIG COST

219,600

$0.0493 $0.0683

6AT

6AT

6AT

6AT

$0.1946

$0.1406

$0.0799$0.0567

87,120

NEED　JIG QTY

2nd

17,568


$0.1032

2nd

2011

40,320

US JIGGET COST

DOWN

$6,185

$16,270

$26,755

$29,300

($56,845)

($5,332)

$0.0953 $0.0758

$0.0616$0.0810

$135,662


$32,623

$37,604

$49,102

$1.0245 $1.2919 $1.0982

$0.0526 $0.3486

$0.0452


Supplier Name:Bucyrus Precision Tech, Inc. Originator: Tad Shealy

Part Name: M/S, S/S, T/S Date: 5/13/2011

Item No. Idea Annual Impact ($) Idea ItemAnnual Impact

($)Idea Item

Annual Impact

($)

Localize M/S & S/S Coil Reduce import costs Localize Coil



Reduce Cycle time T/S Lathes 3 4000.00 T/S Cycle time 20000.00 T/S Cycle time 70000.00

Reduce Cycle time T/S Oil Hole 3000.00 T/S Cycle time 16000.00 T/S Cycle time 50000.00

Replace Tool checkers with BK micro 0.00 Tool checker 40000.00 Tool Checker 40000.00

Reduce power costs - Solar 0.00 Solar Power Solar Power

Reduce power costs - Wind 0.00 Wind Power Wind Power

JSPS supply small parts in bulk

instead of daily lot supply

Rust issue at HPPG

Internal tool grinding (90% Complete) 21000.00 Tool Grinding Energy 63000.00 Tool Grinding Energy 63000.00

Replace plant lighting with T-5 Plant Lighting Energy 30000.00 Plant lighting Energy 30000.00


Ttl. Potential $28,000.00 Ttl. Potential $169,000.00 Ttl. Potential $253,000.00

Ttl. Sales $/yr $42,000,000.00 Ttl. Sales $/yr $40,000,000.00 Ttl. Sales $/yr $45,000,000.00

0.1% 0.4% 0.6%

S.G.A.P.

Investment

(Tooling & Capital)


Purchased

Components

Lo

gis

tics Packaging

Transportation

90Ki Activity (4/13 ~ 3/14)

Raw Material

Mach

ine P

roc.

Fo

rgin

gA

ssem

bly

Summary Page 11th Mid-Term Cost Improvement Plan

Area Item

88KI (4/11 ~ 3/12) 89Ki Activity (4/12 ~ 3/13)

Piece price reduction from innovation

incorporation

Forecast data

ROI presentation


Project planning

• The products and services provided will help you achieve your cost improvement objectives.

• Example:

• Using the research methodologies, we can provide support in the following areas:• Identified opportunities

• ROI presentation

• Project planning

21

• Contact Information:

• Jason Gallion

• Phone +1 (614) 286-5142

• Email: [email protected]

Thank You!

22

Documents

Cost Improvement EPIC