Live Case – Project
Maximizing labor efficiencies and quality, while cutting costs in Just-in-Time additive manufacturing process
A Collaboration Between
We custom design and fabricate 3d printed casts for fracture care, and deliver quickly to doctors and hospitals all over the country. Because of the custom nature of the product, our highest cost, by far, is labor. The labor required is skilled labor, so the staff is highly trained, and must be maintained a living wage to retain them. The nature of fracture care is that some days we may have 24 orders, and other days we have 2. But our staff remains overhead expense – which is expensive for a self-funded start-up. It is essential to maximize our labor efficiency and productivity and minimize our costs, which is hard with Just-in-Time, variable demand and quick turnaround time requirements, as we have to staff (and equip) for the peaks, and maintain our trained staff through the slow times.
In addition, quality control is very important on every device that is hand-finished. It’s important to have a second set of eyes and a QC checklist in place for every device, to make sure the product is flawless, shipping contents are complete, shipping is on-time, shipping costs are minimized, and it is sent to the right place.
Finally, our marketing expenses are high, since it is a new technology, and every doctor and sales rep wants a sample. Each sample must be hand-fabricated and finished as inventory, and then shipped at our expense, a small fraction of which result in a sale.
Determine the most effective staff scheduling/management process to ensure that on-demand orders are processed quickly and efficiently, and that staff time/labor is as effective as possible to maximize output and minimize overhead costs.
Determine key checks that must be done on the product, packaging contents and shipping method/address to minimize staff time and eliminate errors.
Find a cheaper shipping option for our marketing samples.
A staffing plan designed to retain trained staff while minimizing cost and turnaround times while maximizing productivity.
A QC procedure that is efficient and effective.
An inventory management plan for our marketing samples.
Better sample and small package shipping rates.
Project Topics
Company Information
Company | ActivArmor |
HQ | Pueblo, CO |
Revenue | N/A |
Employees | 5-10 |
Stage | Established Startup |
Hiring Potential | Follow-on Projects |
Website | http://www.activarmor.com |
Company Overview
Experiential Learning Program Details
School | University of Wisconsin-La Crosse |
Engagement Format | Live Case - Think "Hackathon" or Case Competition with a whole class of students! This learning format allows educators to deliver experiential learning to students at scale. Students are often split into groups to work on a live case (or a series of cases) from a real host company that directly relates to key learning objectives. |
Course | Managerial Accounting |
Level |
|
Students Enrolled | 110 |
Meeting Day & Time | 3 sections - M-W-F 55 mins (11:00 AM 11:55 AM, 12:05 PM 1:00 PM, and 1:10 PM 2:05 PM) Meeting with company once weekly. |
Student Time Commitment | 1-3 Hours Per Week |
Company Time Commitment | 1 Hour |
Duration | 1.43 Weeks |
Program Timeline
Key Project Milestones
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April 18, 2022 - Milestone One: Conduct a Deep Dive into ActivArmor and Conduct Quality Control Cost Analysis, Process Mapping and Performance Improvements
- Conduct a deep analysis of the ActivArmor’s history, brand, mission and values and how these are “lived” by the company.
- What is ActivArmor’s target demographic, product, and business model?
- What is the customer’s problem and how is ActivArmor’s product solving that problem? What is their unique value proposition?
- What is the ActivArmor’s pricing model?
- What are the sources of revenue by category? What are the expenses by category?
- What type of QC control process is the company currently using? Can you map it out end-to-end?
- What cost accounting measures and data points are associated with ActivArmor’s quality control processes? Who are the managerial decision makers and users of this information? How is the information used to assure quality product and cost efficiency?
- How effective is the company’s current QC process? Are there missing costs unaccounted for in the current quality control process?
- How could the quality control process be improved?
Suggested Deliverable:
- Deliverable(s) 1-2 page infographic overview of the company
- Create a workflow infographics depicting current and recommended quality control costs, data inputs, decision makers and decision making timeline in production process;Report and spreadsheet with analysis of costs associated with quality control measures, recommended KPI’s for quality product production and delivery.
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April 25, 2022 - Milestone Two: Manufacturing Labor Cost/Time Analysis and JIT Scheduling for quickest turnarounds
- What are manufacturing labor costs, and how are the allocated (above/below the line)
- What are the sales volumes at which each additional manufacturing employee is at least/max efficiency? Can you measure the ROI of each additional employee and the sales volume at which they break even?
- Considering the process flow of design, print setup, print time, finishing, QC, shipping, shipping hours, and print failures, what is the most efficient and effective work schedule hours plan for manufacturing labor to meet the fastest turnaround times? For the current 2 staff members, then 3, then 4, up to 12 additional employees?
- Can you recommend measures of manufacturing staff ROI for ActivArmor to gain cost efficiency? Time efficiency? What KPI’s do you recommend?
Suggested Deliverable:
Deliverables: Employee cost analysis spreadsheet with accompanying report providing plan and suggestions for improved ROI’s. Staff time schedule and suggestions for improvement in turnaround time and quickly addressing failures.
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May 5, 2022 - Milestone Four: Document and Benchmark Scheduling and Shipping Costs
- What costs are associated with shipping ActivArmor’s sample products?
- How do these costs compare to industry standards in similar product sectors with similar business models (small sample shipping)?
- What labor costs are involved in sample development and shipping?
- What improvements can you recommend to create efficiency in labor and shipping costs for product samples?
Suggested Deliverable:
Deliverables: Spreadsheet with documentation and analysis of current costs and ROI associated with sample production and shipping; Report and infographic detailing recommendations for reducing costs and increasing ROI from sample production and shipping.
Project Resources
Industry Mentors
Academic Mentors
Assigned Students
There are currently no students assigned.