Questions about supplementary material or other data gathered for this case study can be addressed to Jan Youtie, Economic Development Institute, Georgia Institute of Technology, Atlanta, Georgia 30332-0640, (voice) 404/894-6111, (fax) 404/894-0069, e-mail: jan.youtie@edi.gatech.edu.

For questions about the engagement, please contact Andrew LeBlanc, Georgia Institute of Technology, Norcross Regional Office, 1770 Indian Trail Road, Suite 410, Norcross, GA 30093, (voice) 770/806-2119, (fax) 770/806-2114, e-mail: andrew.leblanc@edi.gatech.edu.

Executive Summary

Footwhere-USA Group, Inc. (Footwhere) is a minority-owned company in Atlanta, Georgia which designs and manufactures souvenir and novelty items. The start-up company moved to Atlanta in 1990 following the selection of Atlanta to host the 1996 Centennial Olympic Games. Footwhere's primary product is a clear acrylic footprint-shaped key chain which contains dirt from various tourist attractions. The dirt is sealed in a groove inside the footprint.

With assistance from the Georgia Manufacturing Extension Alliance (GMEA), the company recently increased production output by $700,000 in additional sales. Footwhere moved into a new 1,200 square foot facility, set up a manufacturing line, and hired eight new employees to operate the line.

Footwhere was having difficulties with the design and manufacture of its footprint key chain. The dirt would leak outside the groove, and the solvent used to seal the footprint together would turn the clear acrylic cloudy. The result was a 20 to 50 percent rejection rate.

After reading a brochure about manufacturing assistance,, Footwhere's president contacted the local GMEA office in October 1995 to request assistance to solve the dirt-dispensing and sealing problems. The local GMEA engineer researched the problems and recommended adopting new process technologies as solutions. The GMEA engineer linked the company to several outside suppliers and technicians to provide custom dispensing and sealing machinery. He also designed a new, more automated manufacturing assembly line. Footwhere upgraded and adopted the recommended technologies through capital purchases of $35,000. By June 1996, the assembly line was fully operational.

The new line reduced Footwhere's rejection rate to one percent. This decline in the rejection rate equates to $36,000 to $104,000 in materials and additional labor costs on an annual basis. The rejection rate decline helps Footwhere keep its costs low, thereby providing domestically manufactured keychains which typically are imported from Asia.

During the engagement, the Footwhere's president, who had a marketing and accounting background, gained much knowledge about manufacturing processes. In addition, he learned about other outside resources. He said, "I would have sought out other outside assistance services, but I didn't know about any of them offhand." At the time he contacted GMEA, Footwhere's president said, "I saw some of the [mechanical engineering consultants] charges and they were cost prohibitive. Some were just designers, and I wanted a one-stop shop."

Case Report

Footwhere-USA Group, Inc. (Footwhere) is a minority-owned company in Atlanta, Georgia which designs and manufactures souvenir and novelty items. The start-up company moved to Atlanta in 1990 following the selection of Atlanta to host the 1996 Centennial Olympic Games. Footwhere's primary product is a clear acrylic footprint-shaped key chain which contains dirt from various tourist attractions. The dirt is sealed in a groove inside the footprint.

Product Design and Manufacturing Problems

Footwhere was having difficulties with the design and manufacture of its footprint key chain. The dirt, which was pressed inside the footprint manually with squeeze bottles, would leak outside the groove. The solvent used to seal the top and bottom of the footprint together would turn the clear acrylic cloudy. The result was a 20 to 50 percent rejection rate.

GMEA Identifies Technological Solutions

Footwhere's president came across a brochure about Georgia Tech's manufacturing assistance programs while applying for a job. The president contacted the local office of the Georgia Manufacturing Extension Alliance (GMEA) in October 1995 to request assistance with its dirt-dispensing and sealing problems. The local GMEA engineer researched the dirt-dispensing problem and recommended that the company automate the process with an "auger filler"a screw-like device that controls the amount and speed of material dispensed. The engineer linked the company to a Georgia firm which produces auger fillers for use by a major manufacturer of sugar packets, and helped Footwhere find a mechanical technician to build a custom table for the auger filler. The GMEA engineer also helped Footwhere find a small local company to develop a long-term, automated device to enable the filler to better handle variability in the content of the dirt.

The GMEA engineer recommended addressing the sealing problem with "ultrasonic welding"a process that fuses parts together using heat created through vibration. He worked with Footwhere to write an order for purchasing an ultrasonic welder from a local supplier. To use the welder, Footwhere had to modify the acrylic keychain pieces. The GMEA engineer recommended specifications for the modifications.

Footwhere Adopts New Manufacturing Technology, Receives Cost Savings

In addition to addressing the dirt-dispensing and sealing problems, the president wanted GMEA to design an automated manufacturing assembly line for his new 1,200 square foot facility. He broke up Footwhere's process into discrete operations, calculated the speed by which products would be produced, and addressed potential bottlenecks to balance out the line. Footwhere upgraded and adopted selected new technologies through capital purchases of $35,000. The purchases included the auger filler, ultrasonic welder, compressor, and an injection mold. By July 1996, the line was fully operational.

The new line reduced Footwhere's rejection rate from 20 to 50 percent to one percent. This decrease in the rejection rate equates to $36,000 to $104,000 in materials and additional labor costs on an annual basis. Novelty items are typically manufactured in lower-cost Asian-Pacific companies and exported to the United States. With this assistance, Footwhere has been able to keep its costs low, thereby providing domestically manufactured keychains which might otherwise have been imported from Asia.

New Sales and Employees

The new GMEA-designed manufacturing line helped Footwhere increase production output 600 to 700 percent. This equates to $625,000 to $750,000 in additional sales on an annual basis. The president said, "I was thoroughly satisfied with the output yesterday."

Changes continue to be made to drive the variability out of the process and increase production; as a result, Footwhere's president anticipates that production output will rise to more than $1 million in additional sales annually. The company, which was using contract workers, hired eight new employees to operate new its manufacturing assembly line.

Learning About Manufacturing, Outside Assistance

During the engagement, the president, who had a marketing and accounting background, gained much knowledge about available technologies and manufacturing processes. The GMEA engineer believes that he helped clarify the company's problems and needs.set priorities, and link the company to outside resources and suppliers. Footwhere's president said, "I would have sought out other outside assistance services, but I didn't know about any of them offhand." At the time he contacted GMEA, he said, "I saw some of the [mechanical engineering consultants] charges and they were cost prohibitive. Some were just designers, and I wanted a one-stop shop."

Supplementary Materials

Chronology of Services

October 19, 1995  Initial meeting held between Footwhere and GMEA.

November 1995     GMEA engineers conducted research. on dirt-dispensing problem.

February 12, 1996 Meeting held between Footwhere and GMEA to discuss sealing problem.

February 23, 1996 GMEA engineer met with Southern Packaging Company to explain Footwhere's                   needs for an auger filler machine.

February 27, 1996 GMEA engineer met with Branson Ultrasonics Corporation to explain Footwhere's                   needs for an ultrasonic welder.

March 15, 1996    GMEA engineer developed a manufacturing plan report for the new Footwhere                   facility.

March 25, 1996    GMEA engineer presented final recommendations and report.

March 28, 1996    GMEA engineer identified an experienced external mechanical technician to set                   up the auger filler process.

April 1996        GMEA engineer followed up with company on recommendations.

                  Footwhere purchased auger filler, ultrasonic welder, compressor, and                   injection mold.

                  Footwhere made additional changes to product design.

May 1, 1996       GMEA engineer met with Footwhere president and Southern Packaging Company to                   finalize auger filler order.

Mid May, 1996     Footwhere moved into a new 1,200 square foot facility and hired eight                   full-time employees.

May 13-14, 1996   GMEA engineer and Footwhere president reviewed manufacturing assembly line                   problems. GMEA engineer recommended interim solution involving external                   mechanical technician and long-term, automated solution from Minitech.

end of May 1996   Mechanical technician built a table for the auger filler.

June 1996         Footwhere began operating new manufacturing line.

July 1996         Footwhere continued to drive variability out of the manufacturing processthe                   rejection rate drops from 20 to 50 percent to 1 percentand increases                   production by 600 to 700 percent.

List of Practice Materials

1. Logic Model

2. Andrew LeBlanc, "FootWhere, Inc. Production Process Recommendations for a Plastic Souvenir Product Manufacturer" Georgia Manufacturing Extension Alliance, March 15, 1996.

3. Georgia Manufacturing Extension Alliance, Customer Evaluation of Services Survey, April 12, 1996.

For more information about GMEA's evaluation plan, please contact Philip Shapira at 404/894-7735 (email:philip.shapira@pubpolicy.gatech.edu) or Jan Youtie at 404/894-6111 (email:jan.youtie@edi.gatech.edu).

modified 11/7/96