The In-Sourced Steel Shop Evolving the Capability

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1 The In-Sourced Steel Shop Evolving the Capability 1 /

2 Agenda Considerations Geography Control Market Evolution Stages Drivers for Change Steelworks Drivers & Scope Building Design & Layout Equipment Transition & Evolution of Std Work 2 /

3 Considerations - Geography Quantity of Possible Suppliers NorthEast Map Environmental Regulations Weather Site Considerations Available Space Zoning Neighbors 3 /

4 Considerations - Market Degree of Standardization Volume Lead Times Labor Skills & Costs Materials/Finish Codes Pic QW 4 /

5 Considerations - Control Turn-around Time Do your requirements match the suppliers capabilities Quality Do the available suppliers over/under whelm your needs? Alternative Work What happens when they find more attractive work? Communication & Collaboration R&D, Issue Resolution, etc 5 /

6 Evolution Pre 2001 Plates and Rebar were outsourced. We caged. Agent took our orders and shopped them out. Many small regional suppliers First Internal Shop Smaller bar shops were acquired or shut down Our Lead Times were decreasing Supplier Lead Times creeping up (5 to 7 to 10 days) Quality issues from some vendors Vendors only wanted large and/or stable orders. Eliminated the Agent, utilized our own purchaser Started with bender (KRB), shear, stud gun, robotic welder, Ironworker, and a couple of welders Plates were roughly 60% in-sourced, rebar was ~90% in-sourced Started Lean Efforts 6s, Kanban for plates Rebar moved to daily orders instead of bulk. Equipment - Barwizer ( 04), Idea machine ( 05), Shear line ( 06) Plates now 65% in-sourced. Heavy welding (haunch/column plates), bent plates and galvanizing was still outsourced. Rebar was 100% in-sourced. 6 /

7 Unistress Steelworks 7 /

8 Unistress Steelworks - Drivers Growth Limited space on main campus needed the space for new forms Volume 150K Lb/wk up from 50k Market Ever shorter lead times Potential to service other businesses Productivity -Moving all operations indoors Multiple shifts Reduced absenteeism Less weather related down time Reduced need for additional laborers during short winter daylight hours 8 /

9 Unistress Steelworks - Scope Simple In-source as much as possible. Size for continued growth All operations indoors Make vs. Buy analysis for each major component type Not everything fits, prioritize accordingly 9 /

10 Building Design / Layout Benchmarked other rebar, fabrication operations Assistance from Schnell Rear entry and independent crane for raw material Leveraged knowledge from previous lean events Confident in plate area layout Collaboration to develop caging area (15k 5k Sq Ft) Space Gets Used up Quickly Raw materials, 45 Idea Machines, Bar Processing Table style plasma cutter would have used too much space 10 /

11 Shop Floor Plan 11 /

12 Equipment Plate Processing Peddinghaus Plasma Cutter & Punch Up to 1 ¼ Plate 5 x 10 Sheets Enabled in-sourcing of Column & Haunch Plates, Column Washers Table Drops Pieces out of the Skeleton Smaller Footprint then Table Plasma Machines 12 /

13 Equipment Bar Processing Schnell Machines Servo Controlled Complicated Shapes 2 Bars Simultaneous Barwizer Processes #3-#6 Shear for Up to #6 Coil 16 #3 - #5 Capability Bar Shear #3 - #11 Capability 13 /

14 Equipment - Assembling (2) 45 Idea Machines 3 Welds, 1 Fixed Used For Walls, Spandrels, Beams We don t use for Columns 14 /

15 Equipment - Additional Other New: MotoMan Robotic Welder (2) 10 Ton Cranes Combi-lift What got left out? Brake Mesh Processing 15 /

16 Transition Many Challenges Caging Outside to inside, 15k 5k sq. ft. New Equipment Training, Shakedown, Optimization New Material Flow Within Shop and Between Facilities Information flow and infrastructure No Sneaker-net Different mix of skills required Less Muscle More Mind Provided Opportunities Less Space Forced to make a decision Reduced time to change Improved Safety Material handling, Slips/trips, Lighting Visibility Everyone under one roof Hard to hide Material Control New Machines Opportunity to Automate Information Flow 16 /

17 Next Steps Automate Information Flow 17 /

18 Summary Your Mileage May Vary Market, geography, and requirements influence the make/buy decision It s a Journey Ease into it develop capabilities, processes, and people Constantly evaluate make vs buy don t be afraid to question status quo Leverage Lean, maintain communication 18 /