JanaMcLendonFieldExercise - Running head DANFOSS FIELD...

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Introduction to Process Technology
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Chapter 10 / Exercise 15
Introduction to Process Technology
Thomas
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Running head: DANFOSS FIELD EXERCISEOperations Observations at Danfoss within the Medium-power Division Jana McLendonBellevue UniversityFebruary 26, 20161
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Introduction to Process Technology
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Chapter 10 / Exercise 15
Introduction to Process Technology
Thomas
Expert Verified
DANFOSS FIELD EXERCISEOperations Observations at Danfoss within the Medium-power Division IntroductionDanfoss has numerous plants around the globe, including divisions of heating, power, andrefrigeration and air conditioning. Each plant is a part of one division, and varying products are produced at each plant. Originally, each unique product was manufactured at one plant. Throughout the past several years, Danfoss has changed its business strategy in that similar products are now manufactured in multiple locations across the globe. For example, the Ames location was the only plant producing medium-power pumps, but after the shift in strategy, plantsin Europe, China, and Japan are creating these as well. It was taking months for the pumps to getoverseas, and now deliveries are faster and more economical, therefore creating more profit for the company. This also prevents a total shutdown of production if something happens to a plant and it is unable to produce product for any amount of time.Danfoss Power Solutions is a manufacturer of many different items. The plant in Ames, IA, is home of the medium and high-power hydraulic pump manufacturing. These pumps are sold directly to equipment manufacturers and wholesalers. The Danfoss hydraulic pumps can be found in many different pieces of equipment from small landscape tractors to large construction dirt movers. All pumps made in this location are strictly produced on a made-to-order basis, and the company holds no inventory. Brad Larson, Medium-power Operations Manager, was the host for this operations observation, of which his division was the subject of this study. He has been with the company for more than 18 years and has held various roles in multiple locations. The author shadowed Larson for eight hours on Monday, February 15. Many meetings were attended, however, with the tight schedule, Larson did not perform introductions. Therefore, no names other than Larson 2
DANFOSS FIELD EXERCISEare included in this report.Service and Product DesignThe medium-power division contains four production lines, with each line creating a unique hydraulic pump. Two of the parts required to make the pumps are produced on-site. A sister facility in Rockford, IL, produces some additional materials that are part of the manufactured pumps, and all other parts are ordered from suppliers and received in the plant on ajust-in-time basis. The plant attempts to keep all raw materials at a minimal amount while maximizing order discounts for these parts.Within the Ames plant, the four lines are completely unique of each other. One belongs to an equipment manufacturer and is not technically Danfoss equipment, but Danfoss staffs and manages the production, improvements, and shipping of the products to the manufacturer. Each of the four lines produces a varying number of pumps per day, with the total output of all lines

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