After Work Sampling Was Complete, The Team Collected Data

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After work sampling was complete, the team collected data to generate spaghetti diagrams. Team members stood in different work areas watching operators perform their jobs. On a current layout drawing, team member drew paths of where operators were traveling too. Each individual operator’s spaghetti diagram can be seen in Appendix 7. Each production area is shown below on Figure 11, 12, 13, 14, 15, 16 and 17. These figures do not represent frequency, they only represent path to the destination. As shown in the figures, there is a significant amount of movement and travel beyond an operator’s specific work area. Figure 11: Fabrication Area Spaghetti Diagram Figure 12: Alternative Fabrication Workstation Spaghetti Diagram

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Table 7: Expected Travel Expenses ImageFirst Signs will anticipate a savings of $99,300 per year. This calculation is based on labor costs, space utilization, reduction in rework, and inventory costs. These calculations can be seen in Table 8 below. Labor cost is calculated in two fold. First by multiplying the number of operators (17), number of weeks per year (50), average hourly cost per employee ($16), and the average number of hours anticipated to be saved with the implementation of the deliverables (2 per operator). Second by multiplying the number of shipping and receiving operator (1), number of weeks per year (50), average hourly cost per employee ($16), average number of hours anticipated to be saved with the implementation of the deliverables (5). Space utilization was calculated by considering the average monetary impact of bringing in two new machines. Per Dave, the facility needs to be preparing for two machines. One will be arriving in April and the other one is anticipated to arrive late summer. Reduction in rework was calculated by multiplying an average cost to fix a sign ($250) by the number of months in a year (12) by the average number of defects needed to be fixed per month (5). Lastly, inventory costs were calculated by considering the average number of extra material on hand (20) by the average cost per foot of the material. As seen below in Figure 19, ImageFirst can anticipate an 85% ROI for this

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