Your company has a policy for investing in manufacturing and processing equipment
 
Making appropriate investments in modern, process-capable equipment is the foundation for sustaining good manufacturing operations. Investing in modern, flexible equipment able to perform a number of operations in a single set up, reduces the need to transfer work and improves flow through the factory.
Key Issues
·         The design of a production module to make products which meet the customer’s expectations must be the yardstick for establishing equipment specifications and justifying expenditure
·         Investment in modern manufacturing and process equipment must be:
o     aligned with the company business plan, the make versus buy strategy and the protection of intellectual property
o     targeted at improving the performance of in-house production modules, removing bottlenecks or meeting Health and Safety legislation
o     part of a plan to improve an area of production identified in the business plan
o     supported by the necessary training for both operations and maintenance
·         The investment sanction needed to purchase new equipment must also include provision for all necessary foundations, tooling, commissioning and services
·         All new equipment should be fully process-capable, able to detect faults and operate with the minimum number of people
·         Technical, performance and commercial risk assessments must be undertaken to identify the most appropriate cost effective solution
·         The justification for capital investment is made easier the more intensive the planned use by production, for example three shifts, six days a week
·         Responsibility for the complete system and achieving specified performance targets should agreed in the contract with the main vendor(s)
·         Investments must focus on achieving significant progress toward achieving the business strategy.
·         All additional costs must be Identified as they may be significant
·         Detailed equipment specifications, tooling, commissioning trials, foundations, service requirements, installation, support, training, delivery date and prices must all be agreed before placing orders for equipment and auxiliary items
·         The price should be negotiated by an experienced purchasing manager
Factors for Success      
Factors to  Avoid
1.     All purchased equipment is process-capable and refurbished if necessary
2.     Measuring systems are evaluated and of known capability
3.     Implementation is properly project managed
1.     Expecting the workforce to operate new equipment without training
2.     Placing orders for single items to replace existing equipment items without thinking things through
3.     Taking responsibility for integrating equipment from different suppliers
Who does this apply to?
Senior management, project manager
Realisable Benefits
Enhanced, more cost effective production facilities delivering improved quality

Guides:

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