Operations
Goals and Objectives
- Produce and sell the premier refrigerant recovery system at a competitive price.
- Determine the operational and design problems with recovery systems currently on the market and design a unit based on suggestions and input from service technicians and wholesalers/distributors.
- Utilize a forty six (46) point quality control system during manufacturing which will rigorously test each completed unit and ensure the highest quality and performance.
- Establish an open channel of feedback between customers and the company.
- Establish a customer "hot-line" to provide on-the-spot assistance and information.
- Send out follow-up questionnaires and conduct in-depth interviews with ROAD RUNNER users.
- Keep employees enthusiastic, productive, and informed.
- Provide job enrichment and job enlargement programs for employees (including cross-training, rotation, shift leadership, and educational seminars).
- Encourage a healthy social climate in the workplace (social outings, contests, theme days).
ROAD RUNNER's operations strategy is designed to efficiently manufacture the premier refrigerant recovery system. This will be achieved through the use of quality control checklists, time motion studies, and employee training. Furthermore, an ongoing research and development department along with established relations with suppliers, will enable ROAD RUNNER to stay at the forefront of its industry.
Efficient and High Quality Production
The operations of ROAD RUNNER will initially take place at the Real Manufacturing Co. plant in Phoenix, Arizona. This facility encompasses 12,000 square feet and has ample resources available for ROAD RUNNER's use. As sales and the distribution network grow, production of the ROAD RUNNER will expand to RMC's plant in Dallas, Texas (15,000 square feet). This facility will provide ROAD RUNNER extra manufacturing space and will serve as distribution center to the Midwest and east coast.
The assembly process includes eleven (11) different production stations. Through time motion studies, data pertaining to time-per-station was gathered and calculated. This resulted in an a highly efficient and organized operation flow. Moreover, ROAD RUNNER employees work as a team and are trained to participate in all phases of the manufacturing process. Through job enrichment and job enlargement practices, the cohesiveness and flexibility of the team have resulted in rapid and high quality production. Through the following manufacturing analysis, maximum production with current resources has been estimated at 13,360 units per year.
Assumptions:
- Two 7.5 hour shifts per day (8.5 hour shift less .5 hour lunch and two 15 minute breaks)
- 14 line employees per shift
- 37.5 hours per week per employee (7.5 hours × 5 days)
- 1050 production hours per week (2 shifts × 14 employees × 7.5 hours × 5 days)
- 4 hours to complete each unit
- 1050 production-hours/4 hours per unit = 262 per week
- 262 per week × 51 manufacturing weeks = 13,360 units/year
To ensure a defect free product, ROAD RUNNER utilizes a forty six (46) point quality control checklist. This checklist concentrates on such areas as structural integrity, pressure tests, electrical tests and packaging requirements. Through the first six months of production this system has ensured a virtually defect free product (less than 1%).
R&d Provides Quality Products
All product design and technical writing are completed by ROAD RUNNER's design engineer, Antoine Walker. The R&D period for the ROAD RUNNER elapsed over a four month period, by which ample in-depth research of all aspects of refrigerant recovery systems and the refrigeration industry took place. A thorough investigation of technician's needs, competitor's systems, and the components that comprise the ROAD RUNNER, has resulted in a recovery system that surpasses all others in quality and performance.
Perhaps the most noteworthy portion of the research and development of the ROAD RUNNER occurred upon the system's designing, building, and implementation. Through follow up interviews and customer surveys, an evaluation of the ROAD RUNNER's performance in the field took place. This provided the engineer with technician's opinions and actual field data, which have proven extremely valuable in making minor adjustments and in the design phase for future products.
Road Runner Carefully Selects Suppliers
To maintain control over cost and schedule, ROAD RUNNER will manage the purchasing of components, scheduling, and inventory control. Special order arrangements were negotiated with suppliers, allow ROAD RUNNER the advantage of purchasing assembly parts and components within one month of production. This will assist ROAD RUNNER in managing cash flow as well as storage concerns. Inventory will be purchased from a variety of suppliers. The suppliers were chosen based on a criterion composed of: quality, shipment flexibility, parts availability, location, payment terms, and price. Choosing suppliers became a critical function of our initial operations as ROAD RUNNER views its suppliers as an integral part of the team.
Only Minimal Capital Equipment Required
Although the assembly and production of the ROAD RUNNER will occur in-house, the capital equipment requirements are not immense. The manufacturing procedure is not "high-tech" since its composition consists mainly of a series of labor intensive tasks including: brazing, soldering, and fastening. As sales grow, further equipment investment will take place. A list of necessary capital equipment is provided below:
| Capital Equipment | |
| *Total does not include leased machinery. Listed equipment is sufficient to produce 13,360 units | |
| Tube bending machine ($1000/shape, 10 shapes) | $10,000 |
| Welding equipment ($300/set, 3 sets) | 900 |
| Tube cutting machine | 170 |
| Misc. tools (sockets, screw drivers, wrenches, etc.) | 700 |
| Misc. equipment (safety gear, solders, packaging equip.) | 520 |
| Wire cutting machine | 400 |
| Lugging machine (Leased month-to-month, $195 per month) Electronic test equipment | 2000 |
| Total * | $15,440 |
