Product category:
Bearings, lubrication, oil and filters
News Release from: Castrol UK | Subject: TFM
Edited by the Processingtalk Editorial
Team on 08 July 2004
Delphi has the Castrol advantage in six
key areas
Following a relationship with Castrol lasting more than ten years diesel systems manufacturer Delphi decided to extend the supply-only contract at its Gillingham site to include total fluid management
Following a relationship with Castrol lasting more than ten years diesel systems manufacturer Delphi decided to extend the supply-only contract at its Gillingham site to include total fluid management Has TFM met expectations? Have cost savings justified the decision? Spokesmen for both companies review the results
This article was originally published on Processingtalk on 22 Oct 2003 at 8.00am (UK)
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Although TFM is a new project for Delphi, the relationship with Castrol is not.
For some years the two companies have worked together to find coolant solutions to a variety of challenges thrown up by technological advancement and the need for cutting edge process development.
The common aim was to enable Delphi to maintain its position as a leading manufacturer of diesel systems for the automotive industry.
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The Delphi spokesman explains that outsourcing non-core activities such as fluid management through 'Integrator Partnerships' with specialist suppliers, not only adds value to Delphi business, but saves costs directly and indirectly.
He adds that Castrol expertise in Total Fluid Management has already proved successful at other Delphi sites and this level of understanding of Delphi business enabled the Castrol team to design a tailored fluid management system that continually monitors the company's needs and evolves to respond to change.
Commenting on the scope of the fluid management programme and the potential for savings, the Castrol site contract manager says every area of the Delphi Gillingham operation has been examined by the TFM team, in order to identify process efficiencies and cost reductions.
He quotes recycling as a major area for improvement, saying: "One of the first things we did was invest GBP30,000 to refurbish the Delphi ultra filtration system.
This was part of a commitment to achieving best environmental practices and allowed us to dramatically reduce waste by cleaning out and recycling the fluid in all water based machining operations.
This is saving an estimated half million litres of waste each year, plus the cost of removing and disposing of the fluid".
In total he estimates that recycling saves Delphi hundreds of thousands of pounds year-on-year and adds that the cleaner coolant reduces operator skin problems to a minimum and produces better tool life.
Removing debris from machine sumps has also helped to reduce problems with tank corrosion.
Stock control was another priority, as the Delphi spokesman explains.
"When we handed control of fluid management to Castrol we were using over two hundred different products supplied by more than one hundred different suppliers, which meant invoicing was a nightmare that took up precious time and resources, and we were unable to get competitive prices from buying in bulk!".
Castrol has since initiated a rationalisation programme that has already reduced by half the different product types and the amount of stock we hold on site.
When fully implemented the Gillingham site will be running just one water-soluble coolant for all relevant processes, which will allow bulk ordering of product and ensure that we achieve significant price reductions.
Castrol has also introduced a single point invoicing system that means we receive just one monthly invoice".
The Castrol contract manager points to other benefits of the rationalisation programme: "Health and safety are also important where manufacturing processes are involved, and fluid management can help customers like Delphi address these issues more effectively".
Customers have access to Castrol global experience as an innovator in health and safety - from the very best in PPE, and staff training, to high grade safety equipment that is designed to protect people and the environment in virtually any situation.
Acknowledging that prevention is better than cure, the Castrol team is helping to reduce H and S risk by constantly reducing the amount of stock held on site and eliminating products completely where possible.
At Gillingham, the reduction in stock held has meant a 35% reduction in the number of 208-litre drums, and more reductions are promised as the rationalisation process progresses.
Much is also being achieved by single sourcing using products such as Castrol Hysol XF - a multifunctional fluid that covers more than 95% of Delphi day-to-day production requirements.
This, plus the fact that it is recyclable and extremely resilient to bacterial infection, has enabled Delphi to save money by buying in bulk.
Castrol has also worked with Delphi to achieve compliance with the latest bunding regulations.
The ISO 14001 environmental legislation covering the handling of bulk liquids requires all fluids to be stored in a secondary containment area large enough to hold 110% of the fluid being stored.
This ensures that if a container is damaged, the contents do not cause a health or environmental hazard.
All drums stored on site are bunded and only drums holding working stock are permitted on the shop floor.
These measures have improved safety throughout the factory and supported Delphi in its drive for ISO 14001 standard certification.
The rationalisation of all lubes, hydraulic oils and greases at the Gillingham site has produced benefits far beyond the expected cost effectiveness of single sourcing.
Says the Delphi spokesman: "Equally important health and safety benefits have very quickly become apparent".
First Line Lubrication - another essential element in the programme - is controlled using the Castrol computerised fluid scheduling system, which ensures close monitoring and scheduling of all day to day, week by week, monthly and annual fluid management tasks.
The Castrol contract manager says the system helps to ensure that the Castrol team meets its responsibility for first line lubrication of more than 300 machines in the Gillingham plant, much of it running 16 hours or more a day.
He explains: "All tasks are printed onto daily work lists and are signed off on completion, which provides us with a complete history of every machine.
Records are kept electronically and as hard copy.
The computerised system is scheduled to re-activate tasks to a pre-determined frequency, ensuring that no task is missed".
The Castrol on-site lubrication technician keeps exception logs for use in benchmarking and fault analysis, as well as entering faults onto the Delphi Shire system, which alerts the engineering department to possible leaks and raises an engineering request for any repairs.
Bringing the relationship right up to date, the Delphi spokesman highlights a recent addition to the total fluid management programme, which gives Castrol responsibility for day to day titrations and adjustments on all machine washes, plus wash clean outs and first line filter changes on the various washes.
"Delphi uses approximately 28,000 litres of wash water per week," he says: "all of it used to wash components to clinical cleanliness levels.
Maintaining these standards requires a high level of maintenance and training, which is one of many benefits Castrol has introduced since adopting this project".
He adds that the move has also stabilised dirt audit results and helped to keep wash fluid consumption under control.
Looking to the future, Castrol is constantly suggesting process improvements to meet its commitment to reduce Delphi lubrication costs.
Areas currently under consideration include, product improvements, pack size rationalisation, recycling of calibration oils and wash fluid, and reductions in fluid changes and machine downtime.
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