International Operations

Management
Prof. Pietro De Giovanni

Group Assignment - Group 1

Jan Fritz
Karolin Konopka
Maximilian Sandbaek
Sabrina Wee

B00617435
B00622933
B00620348
B00542989

Introduction
Analysis
Recommendations and Conclusion

One of the leading companies in Europe in the field of

dismantling and cleaning engine and transmitting parts as well
as recycling.
Focus on the vehicle transmission remanufacturing of mechanical transmissions
-- Shaft and Shift Collar of the Transmission

Improve current recycle rate from 8090% of a transmission to

85-90%
Mack GmbH process layout for Vehicle Transmitting
Remanufacturing

Introduction
Analysis
Recommendations and Conclusion

Analysis Variables

Corrosion level and Cleaning Time

Effect of throwing 2% corroded parts affects

cleaning and quality, which affects cost
Predicted recoverable parts by throwing away 2% corroded parts
% total parts
% of recoverable parts
Level 1
100%
80,0%
Level 2
100%
81,3%
Level 3 (-2%)
98%
79,7%
Difference recov. parts
-0,31%

Saved costs
Cleaning time
Preassembly time
Special cleaning
Total Cost
Saved costs (2%)

Average
106
45
21

Costs per unit

0,80
0,40
1,00

Total Cost
84,80
18,00
21,00
123,80
2,48

Difference recov. parts

-0,3%

Revenue per %
5,00

Total Revenue loss

-1,55

Saved costs

Revenue loss

Profit increase

2,48

-1,55

4,03

Revenue loss and change in profit

Revenue loss

Change in Profit

Throwing 2% also affects quality due to lower % in

recoverable parts (but why?)

Profit analysis of cleaning time

Difference in Units
Saved cost
1,00
Revenue loss
0,05%
Profit change

Impact in per Unit

0,80
5,00

Total impact in
0,80
0,26
0,54

Introduction
Analysis
Recommendations and Conclusion

10

Suggestion

Rationale

Impact

conducting a stricter preselection of incoming products,

meaning that transmitters that
score high on these variables
are excluded at the very
beginning of the recycling
process.

Deviation from standard size

and Component age have a
negative impact on % of
recoverable parts,

This would not only allow Mack

to increase and stabilize its
recycle rate for transmitters but
also to save unnecessary costs
in case the recycling of certain
transmitters should not be
profitable

Mack could consider increasing

the average cleaning time
per transmitter

as this variable has a positive

and statistically significant
effect on the % of recoverable
parts.
given that the additional
revenues resulting from an
increase in the % of
recoverable parts outweigh the
cost related to the rise in
average cleaning per
transmitter

further improve the quality and

profitability of the process.

conducting a similar analysis for

its remaining remanufacturing
activities

provided data and the format of

the report have merely enabled
us to focus on improving the
process for transmitting

supporting Macks vision of

becoming the leading supplier
in dismantling and cleaning
11
technologies

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