Date of Submission
Industrial and Systems Engineering
Dr. Adeel Khalid
GeoStabilization International has been in business since the beginning of 2002, with a focus on transportation infrastructure, emergency landslide repairs, rockfall mitigation, and grouting. Nearly 20 years later, business is booming, and GeoStabilization has come to realize that they are spending approximately $20,000,000 per year on outsourced steel fabrication. The purpose of this project is to reduce these outsourcing costs and maximize profits to create a smoother, more cost-effective operation for GeoStabilization International.
After meeting with J. Reid Bailey, GeoStabilization’s Senior Project Development Engineer, and understanding their most areas of greatest concern, the team researched and investigated the company’s yearly expenditures, facility arrangements, and manual processes. The team also analyzed their inventory, outsourcing and production records. An economic financial analysis was executed by way of gathering data for order costs, holding costs, and delivery costs from facility providers.
The team then requested to analyze the facilities blueprints and recognized that GeoStabilization International could simply reduce these costs and liabilities with the implementation of their own new steel metal fabrication facility and saving GeoStabilization a minimum of 5 million dollars annually.
To successfully complete this project our team will go through a series of phases that begins with the remodification of GeoStabilization’s inventory warehouse. This is the optimal course of action in terms of our budget and schedule, as it eliminates all construction costs for a new facility. After rearranging and implementing a new design in the warehouse, our team will begin acquiring the equipment and machinery necessary to fabricate the highly demanded steel plates.
Once the implementation of the newly designed warehouse is complete, our team will then begin by hiring one certified and experienced fabricator who will then be accompanied by GeoStabilization’s manpower resources from within the company to train on these machines to start outputting products. These machines do not necessarily require highly skilled fabricators; however, acquiring one trained professional to train two current employees will satisfy the successful operation of these machines and further ensure quality and efficiency. Additionally, the implementation of a dust collection system is mandatory to maintain a clean and healthy work environment from all the exposed fumes and metals. Quality Control will be used to identify if the process operates according to the standards and guidelines of GeoStabilization’s demand for steel plates.