Case Study: Tyco Electronics, Rock Hill, SC
May – August 2003

Original Condition    Tyco Electronics, Rock Hill, SC purchases the specified core pin between $47 and $100 each from suppliers as follows:

IMP Assistance

The challenge for this project is to create a new manufacturing process using the high technology and technical experts from the Institute for Manufacturing Productivity’s industry partners that will allow manufacturing to remain in the United States.  That is, competing with offshore manufacturing in PRICE, Quality, and Delivery.

Critical tolerances of this part are + 20 millionths of an inch.

Tyco Electronics registered one student, a senior machinist, in the IMP-501 Process Development continuing education class.  The team members were Tom Dickerson, P.E.-YTC, Bud Rushin-Charmilles Technologies, Tim Eagen-Tyco Electronics, Richard Howard-Sandvik, William Beaver, P.E., M.B.A.-YTC.  Note:  Bud Rushin and Richard Howard are application engineers from industry partners of the Institute for Manufacturing Productivity (IMP).

The team established a new manufacturing process in six days documented on the attached report.

• The first 10 pieces were made by the entire team,
   

• The next 40 pieces were made solely by Tim Eagen – the machinist of Tyco Electronics, with William Beaver, P.E., M.B.A observing, documenting, and timing the process,
   

• The purpose of having Tim Eagen produce 40 pieces is to assure that technology transfer has occurred from the IMP to the customer without the assistance of the technical experts,
   

• Tyco Electronics receives all CNC programs, a documented process, and a fully trained high-skilled worker to begin realizing the economic benefits of this process development course.

Image of raw material, in-process core pins, and individual finished product (above)

Finished product (above)

Summary:

            Before:   Price per core pin between $47 and $75, from suppliers.

After:  Manufacturing per part cost with new process as follows:

Material cost:                $0.015

Labor cost:                   $0.897

Machinery cost:            $8.101

TOTAL COST:              $9.01

Results & Verification of Effectiveness:

“Two stages of coring were delivered to the company for inspection. The first set of ten (10) pins verified application and tolerance capability to complete the project planning and to set a timeline standard.  The balance of the pins was delivered the week of 8/11/03.  Inspection results indicated that all 40 pins met tolerance/manufacturing requirements as specified by the engineering drawing and group.  The total of 50 core pins will be implemented into the manufacturing process.” – Tyco Electronics Management

Synopsis from Tyco Electronics Management

“The joint venture between the Institute for Manufacturing Productivity and Tyco Electronics proved to be beneficial for both organizations.  Education was achieved on both fronts.  Capability and cost analysis of the IMP-501 Core Pin Project identified significant potential for establishing future projects between academics and industry.”  “Thank you to all who supported this project.  We look forward to continuing our venture with York Tech with future projects.” - Tyco Electronics Management

Economic Impact

Per part cost reduced by $38 to $66 each.  Total economic impact depends on volume.  Additionally, the new process can be applied to the entire family of core pins.