Computer Residuals De-manufacturing Method and Its Economic Value

1. Computer ResidualsDe-manufacturing Method and Its Economic Value Project Site: PSE&G Resource Recovery Center Paulsboro, N.J. Group Members: Sheila Navarro Hazel Savellano Rebecca Sutton

2. Dilbert by Scott Adams

3. Outline • Problem Statement • Current Solution • Scope of Project • Operational Analysis • Economic Analysis • Recommendations • Conclusion

4. Problem Statement • Approximately 2000 computers per year • 50% refurbished and donated • 40% remanufactured and resold • 10% residual Problem: What to do with the residuals?

5. Current Solution Contracted to outside source • Take Monitors and CPU • Storage required • Optimal truckload capacity • “Out of sight, out of mind.”

6. Scope of Project Alternative Solution • Establish a method of de-manufacturing • consider CPU only • environmental issues with monitors • Economic evaluation against current solution • target costing • break-even analysis • comparing alternatives

7. Operational Assumptions • IBM family of CPU • Optimal working environment • Tools allow for easiest disassembly

8. Establishing the Work Standard MOST (Maynard Operation Sequence Technique) • Predetermined motion time system • Determines amount of time required • planning • performance rating • establishing costs

9. Basic MOST Technique • General Move (for movement of object through air) • Controlled Move (for the movement of object in contact with surface or other object) • Tool Use (for use of hand tools)

10. Application of MOST Removing Fasteners or Screws LH: A1 B0 G3 A1 B0 P1 A1 RH: A1 B0 G1 A1 B0 (P3 A0 L16) A1 B0 P1 A0

11. Operations of Disassembly Remove Metal Casing Remove Power & Data Cables from Floppy Drive Unfasten Floppy Drive Unfasten Supporting Bar

12. Operations of Disassembly Remove Support & Floppy Drive Remove Power & Data Cables from Power Supply Remove Mother Board Unfasten& remove PowerSupply

13. Operations of Disassembly UnfastenDriveHousing RemoveRubberFeet Work Area ** Pictures taken from actual disassembly at PRCC**

14. Work Method Results • Assume 2 hour work period per day • Allowances taken into consideration (26%) • Use of force, energy 5% • Mental Strain 1% • Monotony 1% • Personal allowance 5% • Unavoidable delay 10% • Basic fatigue 4% De-manufacturing rate for one unit: 8.16 units per hour = 7.35 minutes per unit

15. Economic Assumptions • Costs are analyzed as present economy studies • Analysis designed to break-even • No MARR

16. Economic Data Outside service costs: Labor = $10 per unit Transportation = $1.70 per unit Total = $11.70 per unit* * prices based on full capacity truck load

17. Tools and Equipment * • Computer Screwdriver $20.55 • Grip Floor Mat $14.79 • Hammer $5.91 • Industrial Stool $59.38 • Protective Eyewear $3.77 • Utility Bar $4.24 • Utility Knife $0.59 • Utility Table Bin $0.45 • Wire Cutter $9.90 • Wood Table $310.00 • Worker’s Gloves $6.50 *(unit prices)

18. Target Cost Analysis * U.S. Department of Labor, Bureau of Labor Statistics - March 1998

19. Cost & Time Evaluation • Equipment cost per worker = $286.03 • Set-up cost of $1,893.47 = 6 workers • Disassembly rate for 200 units = 24.5 hours

20. Recommendations • Demanufacturing task as part of unused computer handling operation • Schedule 2 workers per week for demanufacturing • Set-up 2 workstations • 1 workstation for CPU disassembly • 1 workstation for sub-disassembly • Set-up cost = $572.06

21. Final Thought Implementing an efficient de-manufacturing operation will result in a 70% cost reduction.