Cost Reduction Proposal for a Tamper-Indicating Closures Manufacturing Cell

Abstract

Rexam Closures & Containers manufactures the tamper-indicating cJosure (CGI) product Jine to compete in the automotive after-market. Due to extreme price pressure in the market, Rexam Closures & Containers found it desirable to reduce the cost to manufacture the CGI closure. In order to identify potential cost savings, lean manufacturing techniques were researched and utilized where appropriate. In particular, the value stream associated with the manufacturing process used for the CGl was mapped and analyzed to identify non-value-added operations. The value stream mapping process generated several opportunities to reduce waste and, therefore, cost. Product testing was conducted in order to verify that the cost savings alternatives did not negatively affect product function. As a result of the analysis, a recommendation that documents potential cost savings of $24,000 annually was forwarded to Rexam CJosures & Containers' senior management.