Issue:
Minimise scrap generation by purchasing sheet steel in bulk coils and processing it in house.

Current Situation:
Steel is purchased as a cut to size sheet to suit the component manufactured from it. Scrap is generated by the steel merchant. Some parts can be cut from coils but there is a limitation to the size of the component that can be made.

Objective:
Allow all components to be cut from standard size bulk coil. Inter-cut with different components to optimise the use of the material.

Improvement Initiative:
Commission new plant that will handle coils to suit all sizes of components currently manufactured. Design and build a control system to allow high accuracy and flexibility for changing to different components. Expected capital outlay $80,000.

Timing:
Competed end December 2005.

Measurement:
Reduced scrap levels to be monitored and reported on Production reports.