Sapa Extrusions Saves over 30% with Technical Service Agreement
FlexPAC recently partnered with Sapa Extrusions, a world-leading aluminum extruder covering 40 countries. Sapa was struggling with maintaining and repairing handheld strapping equipment, leading to rushed service charges and unrepaired backup units. FlexPAC collaborated with Sapa to create a solution that would streamline this process eliminating downtime and overpaying for service.
The process Sapa previously had in place required broken units to be packaged and shipped over 500 miles to Atlanta for repairs, which could take on average 2-3 weeks to complete. This process caused disruptions to production, costly shipping and hourly repair charges, and left no way to track equipment repairs.
FlexPAC’s solution was a combination of process improvements within Sapa’s existing procedures coupled with a simple easy to implement repair program. Step one was to have Sapa properly tag units in red as “Out of Service”. Step two requires tagged equipment to be placed in a bin identified as “FlexPAC Equipment Repair”. Each week, if necessary, a bin is returned to Sapa with repaired units tagged in green as “Repaired” and the bin containing damaged units is picked up and returned to FlexPAC. During repair, FlexPAC catalogs serial numbers and any work associated with the unit. Turnaround time for repairs is typically one week and pricing was negotiated as a flat fee bench rate with a percentage off parts.
In the first week, FlexPAC received 6 units ranging from entirely dismantled to fully functional units thought to be broken. Total offline equipment value was more than $20,000.
– Projected cost savings is between 30-40% in parts and labor
– Turnaround time was improved by 5-10 business days helping prevent downtime
– Proper identification and isolation of broken units helps prevent injuries by removing bad units from the plant floor
– Equipment tracking will allow dollars to be associated with specific equipment to identify when a unit needs to be replaced.
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