Carrier needed a better way to receive and distribute the many nuts, bolts screws and washers used in assembling packaged air conditioning units. The previous system required an extensive inventory system and resulted in significant waste cardboard.
The system that was developed involved making metal "chicken feeders" out of metal ducts. The feeders were weighed and bar coded for the particular part. These feeders are sent directly to the distributor and Carrier then buys all components by weight. This totally eliminated package waste associated with small parts.
Elimination of 36,000 pounds of waste packaging material per year going to a landfill.
Details of Reductions
Additional Information :
Carrier knew that the savings in reduced waste would be significant. This turned out to be $30,000 per year. What was not figured in to the initial savings was the reduced labor due to less handling of packages and waste (about $40,000/yr.), a decrease in back injuries due to lifting (about 5/yr. and a $40,000 reduction in workmen compensation.), inventory could be reduced by three days and 600 sq. ft. of warehouse was freed up, and lastly, less downtime from running out of parts (saving almost $250,000 a year). The total savings for the project was $360,000 a year.