Manufacturing Performance Measurements Determines Resource Alignment According to Optimation

Released on: August 7, 2008, 8:21 am

Press Release Author: Thomas R. Cutler

Industry: Software

Press Release Summary: Manufacturing Performance Measurements Determines Resource
Alignment According to Optimation

Press Release Body: Optimation has introduced Primary StandardsT which greatly
reduces the cost of measuring manufacturing performance. According to Michael D.
Lundy, P.E., President & CEO of Optimation, "Primary Standards enables a
manufacturer to know how each part produced contributes to the profitability of the
company avoiding secondary standards that mislead and cause wrong decisions.
Consider a department that is staffed with 6 people. The department is charged with
processing $1,000,000 of product made up of 100,000 pieces in a given month. The
department works at the efficiently rate of 625 pieces per hour or 5,000 pieces per
8 hour day. This would produce the $1,000,000 in a 20-day month. If the department
was able to produce at 650 pieces per hour, the 100,000 pieces could be produced in
19.23 days instead of 20. However, if the department continues to pay for 6 people
for 20 days, there is no change in expense. If there is no change in expense, there
is no change in profit. A worse scenario is for management to offer a bonus for the
higher pieces per hour rate. In that case, expense went up, and profit went down.
This is exactly what happened in many businesses in the 1960's to 1980's when focus
on piece part productivity was at its height."

In order to manage a company well, executives must know how a company creates profit
and measure the components that determine the targeted results. Primary Standards
are designed to determine if production resources are performing in line with
corporate profit goals.

For thirty years Optimation® (www.optimation) has been the world leader in Part
Nesting for Optimized Material and Labor utilization. Consistently providing product
advancement leadership to industry, the company's new Nesting Technology, AxiomVE
make previous nesting methods obsolete. The new technology, Vision EmulationT,
allows the system to "see" the shape of parts, just as human eyes would view them.
When a person looks at a part, they see the whole shape and any special features on
the part. This information is then used to determine if the part will fit in an
area of the nest. Vision Emulation eliminates excessive trial and error as well as
excessive rotation.
Optimation offers benchmarking against any other method of part nesting; recent
benchmarks have show improvements up to 15% in material efficiency alone. As lean
efficiencies are essential, the most advanced nesting technology guarantees the most
important parts are always nested in the next available machine, providing advanced
information to integrated costing, labor reporting, and material inventory systems.
Because Optimation is strong financially and has the most advanced technology; the
company offers direct financing from its own capital resources.

Optimation
www.optimation.com
Michael D Lundy P.E.
Opti1@optinest.com
877-827-2100


Web Site: http://www.optimation.com

Contact Details: Optimation
704 NW Mock Street
Blue Springs, MO 64015
816-228-2100

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