Optimation CEO Lundy Urges Alignment of Production Resources with Profit Goals

Optimation CEO Lundy Urges Alignment of Production Resources with Profit Goals

In order to manage a company well, executives must know how a company creates profit and measure the components that determine the targeted results. Primary Standards are designed to determine if production resources are performing in line with corporate profit goals. Optimation has introduced Primary Standards™ which greatly reduces the cost of measuring manufacturing performance. According to Michael D. Lundy, P.E., President & CEO of Optimation, “Primary Standards enables a manufacturer to know how each part produced contributes to the profitability of the company avoiding secondary standards that mislead and cause wrong decisions. Consider a department that is staffed with 6 people. The department is charged with processing $1,000,000 of product made up of 100,000 pieces in a given month. The department works at the efficiently rate of 625 pieces per hour or 5,000 pieces per 8 hour day. This would produce the $1,000,000 in a 20-day month. If the department was able to produce at 650 pieces per hour, the 100,000 pieces could be produced in 19.23 days instead of 20. However, if the department continues to pay for 6 people for 20 days, there is no change in expense. If there is no change in expense, there is no change in profit. A worse scenario is for management to offer a bonus for the higher pieces per hour rate. In that case, expense went up, and profit went down. This is exactly what happened in many businesses in the 1960’s to 1980’s when focus on piece part productivity was at its height.” For thirty years Optimation® (www.optimation.com) has been the world leader in Part Nesting for Optimized Material and Labor utilization. Consistently providing product advancement leadership to industry, the company’s new Nesting Technology, AxiomVE make previous nesting methods obsolete. The new technology, Vision Emulation™, allows the system to “see” the shape of parts, just as human eyes would view them. When a person looks at a part, they see the whole shape and any special features on the part. This information is then used to determine if the part will fit in an area of the nest. Vision Emulation eliminates excessive trial and error as well as excessive rotation. Optimation offers benchmarking against any other method of part nesting; recent benchmarks have show improvements up to 15% in material efficiency alone. As lean efficiencies are essential, the most advanced nesting technology guarantees the most important parts are always nested in the next available machine, providing advanced information to integrated costing, labor reporting, and material inventory systems. Because Optimation is strong financially and has the most advanced technology; the company offers direct financing from its own capital resources. Optimation www.optimation.com Michael D Lundy P.E. Opti1@optinest.com 877-827-2100