EIP Implemented: Homerville Projects Yield Savings and Process Enhancements

Two EIP projects in Homerville, GA, recently recognized as part of the Mauser Employee Award program, have led to ongoing savings and enhanced processes at the facilities. These initiatives required minimal financial investment and were driven by proactive individuals committed to driving change.

New Supplier for Child Safety Labels

Scope

Qualify alternative supplier for pressure sensitive child warning labels used at Homerville

Goal

Reduce cost by transitioning Homerville to a more cost-effective label supplier used by Chicago Metal while maintaining or exceeding current quality and performance

Result

$65K annualized savings by switching to the supplier used by Chicago Metal

To address a price discrepancy between two suppliers for child safety labels, Brandy Carmichael (Quality Supervisor, Homerville) initiated a project to evaluate the viability of the more cost-effective supplier used by Chicago Metals. In 2023, Brandy requested 100 labels from Chicago Metals to determine if the labels met the required quality standards for Homerville. The labels from Chicago were affixed to 100 pails and subjected to rigorous and lengthy testing. After passing external tests at a third-party location, the pails were returned to the Homerville facility where additional quality tests were conducted, and the labels were approved for use. The new labels were approved in Q2 2024, and the facility transitioned to the new supplier. Total savings in 2024 from the new supplier amounted to $12,000, with a projected annual savings of $65K when implemented for a full year.

Homerville uses child safety labels on 2.5 gallon and 6-gallon pails and drums used by vendors to hold things like paint or water sealant that require a child safety warning label.

In addition to financial savings, using the same qualified supplier for multiple facilities allows locations to share resources when needed. For example, in December, Homerville’s stock was depleted and instead of delaying production while waiting for the supplier's lead time, the facility was able to have labels overnighted from Chicago.

“This project and Brandy’s willingness to lead the process of qualifying the new supplier at Homerville serves as an example of how we want to streamline procurement practices and consolidate suppliers to ensure all facilities are receiving the best price for resources,” said Bill Patrick, Homerville Facility Manager.

Conclusion:

Supplier differences for similar products across multiple facilities are common within Mauser. Significant savings can be achieved when facilities collaborate to identify these discrepancies and transition to the most economical supplier for all locations. Additionally, having the same suppliers approved for multiple facilities allows Mauser to leverage its global footprint to share resources or shift production between locations as needed, ensuring customer needs are met without interruption.

Improved Spoilage Recycling Process

Scope

Implement process for spoilage processing to eliminate the need for third parting sorting and improve transportation of scrap from the facility

Goal

Reduce cost and increase return on spoilage recycling

Result

Accumulated savings of over $545,000 since the projected was implemented

Prior to the implementation of this EIP project, spoilage designated for recycling was not sorted on site at the Homerville facility. Instead, all scrap metal was loaded into roll-off bins, which were collected multiple times daily and transported to the recycler. The recycler then sorted the scrap before recycling it. This inefficient and costly process resulted in a 35-45% reduction in the value of the recycled scrap.

Spoilage refers to the loss of materials or products during the manufacturing process. At Homerville, the most common types of spoilage are metal trim and product that does not meet quality standards.

Recognizing the inefficiency and value loss in the existing process, Armando Carbajal, who was a Homerville Plant Engineer at the time and is now an Engineering Manager, recommended and implemented a new system. He designated specific bins for each type of scrap and trained forklift and manufacturing operators to sort the scrap as it was removed from the facility. Additionally, improvements were made to the rail tracks, and railcars were introduced to receive the scrap material instead of using roll-off bins. The pre-sorted scrap is then loaded into the railcars and transported to recycling facilities. By sorting the scrap internally, the facility can avoid the lower recycling rate and receive the full value for the recycled scrap.

Implementing this system and using rail cars to transport scrap significantly reduced transportation costs. Transporting around 7,000-8,000 pounds of scrap per load by truck used to cost an average of $200 per load. With the new sorting system and use of rail cars for transportation, up to 200,000 pound of scrap can be accommodated per load. While the cost per load is higher, the reduction in loads substantially decreases scrap removal costs.

Conclusion:

Since the project's inception in June 2024, the facility has realized savings of over $545,000 through increased returns on scrap recycling and reduced transportation costs. Beyond the financial benefits, the new spoilage removal process has enhanced safety by cleaning up the scrap area and reducing vehicle traffic. The willingness to challenge the existing process and implement a new one has not only created significant financial gains but also improved workplace safety.

“Armando took the lead on this project and showed great initiative to train operators to sort spoilage and monitored implementation of the new process on a daily basis to ensure compliance with the new process,” comment Bill Patrick, Homerville Facility Manager.

Call to Action

At Mauser, continuous improvement is part of our culture. Since implementation, the Earning Improvement Program (EIP) has been crucial in maintaining our financial stability, saving over $615 million while enhancing safety, collaboration, efficiency, and sustainability.

Your involvement is essential at every stage of the EIP process, from idea generation to implementation.

We've seen significant value where EIP has been embraced, but there's still untapped potential. We need your innovative ideas to achieve our ambitious goal for 2025: $150 million in financial benefits. Submit your ideas and help implement them to drive Mauser forward. Together, we can make a significant impact.