CASE STUDY No. 9708


KEY WORDS METAL SCRAP, REDUCTION

Reliance Electric Industrial Company
2855 Michigan Road
Madison, IN 47250

Contact: Delbert Liter, Plant Engineer. Tel: 812-273-1664. Fax: 812-273-6874.


Summary

Reduction of metal scrap and other waste prevention initiatives enable an electric motor manufacturer to reduce disposal by 300 tons per year and realize savings of $150,000.

Action

Reliance Electric Industrial Company makes small electric motors. To address waste reduction issues, the company created REACT--Reliance Environmental Awareness Conservation Team. Here's how the team has responded concerning specific metals:

  1. Copper. Large amounts of scrap copper wire are generated in the process of manufacturing electric motors. This leftover wire has always been recovered and sold in the scrap markets. It is far more beneficial, however, to reduce the scrap rate. The REACT team found that by: specifying delivery of wire on larger spools, reducing wire winding machine malfunctions, and developing a more accurate method of determining when spools were running low on wire, wire purchases could be reduced about 15,000 pounds a year, yielding a 20% reduction in materials costs for this one item.
  2. Aluminum. Excess and waste aluminum from the rotor manufacturing process was being sold as high-grade scrap. The team found it was possible both to increase the scrap recovery rate through procedural changes and re-smelt it in ingot form for direct return to the plant's manufacturing line. This change resulted in a $27,000 reduction in raw materials costs.
  3. Steel. Excessive scrap losses were observed during the welding of motor frames. The team found the cause was primarily uneven application of heat during welding. A $15,000 modification to the welding machine has reduced the waste steel rate by 15% and increased productivity.

Additional reductions in waste were achieved by:

  1. Resharpening instead of scrapping carbide tooling inserts, prolonging their life;
  2. Installing new paint guns in the paint booth, reducing touch-up and paint consumption;
  3. Replacing metal nameplates with laser-applied data--burned into the motor housing after painting;
  4. Return of plastic buckets and wire spools to vendors for reuse,
  5. saving disposal expense for 40 tons of material;
  6. Correcting an overflow leak, reducing process water demand by 50%.

Payback

Although the company has not calculated its return on investment, most of the changes required no capital, and payback time should be considered minimal. This is typical of industrial programs in which small quality improvements are made continuously.

 


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