$80k/month Increase in Allison Transmission Scrap Revenue
What do you do when manufacturing waste like oil ruins your scrap value?
Problem:
Allison Transmissions in Indiana was facing challenges with handling oily scrap chips generated from their machine shop. The plant was selling the scrap loose in plastic-lined roll-off containers to a local scrap yard, which resulted in inefficient processes and potential environmental hazards due to oil leakage.
Solution:
Factory Scrap conducted a site visit to assess the situation and immediately recommended the installation of processing equipment. This equipment was designed to extract oil from the scrap chips and densify them into pucks, effectively eliminating the environmental hazard outside and containing oil recovery within the plant.
Additionally, we shifted the sale of scrap to an end user rather than the local scrap yard to maximize profitability.
Outcomes:
The installation of the processing equipment led to significant improvements. The facility saw an approximate $80,000 increase in revenue due to the change in scrap sales and achieved $35,000 in labor savings.
Furthermore, the facility reduced administrative costs by simplifying the tracking of containers, which had previously been inefficient due to the light weights of the loose scrap.
Conclusion:
This case study highlights the impact of implementing strategic processing solutions in a machine shop environment. By addressing both environmental concerns and operational inefficiencies, Factory Scrap was able to enhance Allison Transmissions' scrap management, resulting in substantial cost savings and revenue improvement.
Our approach not only optimized scrap processing but also ensured a safer and more efficient working environment.
