Gordon Aluminum Industries Success

Results

Gordon Aluminum chose to replace its die ovens as part of the project. The aluminum extrusion process requires dies to be pre-heated to 850 degrees by electric heating elements in die ovens. The PSI assessment found that replacing the old die ovens with energy-saving models would save $76,000 per year in energy costs, with a payback on the ovens of 1.15 years.  

The second project focused on scrap reduction. Gaurav Gandhi, manufacturing specialist at WMEP, leveraged his extensive background with Six Sigma and continuous improvement to identify ways to reduce the scrap generated during the aluminum extrusion process.  Initially, the scrap reduction project set a goal of reducing scrap cost by $300,000 annually, but after further analysis and implementation of the changes recommended by Gandhi, scrap reductions will render at least $600,000 in savings per year. Over 5 years, Gordon Aluminum will save $3M on scrap reductions alone. “One of the intangible benefits Gordon Aluminum got from the project is learning some of the problem-solving techniques that other industries have used in the past for similar continuous improvement projects,” said Gandhi.

In addition to savings, a host of other benefits were gained by Gordon through the PSI process – including access to funding and capital. Through Focus on Energy, Gordon received a $30,000 grant for the purchase of the die ovens, and was able to secure bank financing for the rest of the investment. “Gordon Aluminum, like most businesses, is debt-financed. You need someone there that’s going to back your play, especially when you’re going to make a major investment,” said  AJ Gordon, president of Gordon Aluminum. “. . . it certainly helps to have that independent view in your back pocket. . . we’re not alone in this fight. WMEP is well-known, the bankers know who it is, and frankly, our customers know who it is.”