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Partially sealed unit. These are the units you want to utitilize for "real" refrigeration work. Can be user serviceable, and rebuilt and are rated for either indoor or outdoor use and are the best option for extremes.

(-10 and below)

1940 - Semi-hermetic

Completely sealed, especially against the escape or entry of air. So called "tin cans". There are no user serviceable parts inside. Once this compressor fails, your only option is to replace it. These are typically for indoor use.

1950 - Hermetic

Air compressors - a mechanical device that compresses gasses by taking in air at atmospheric pressure and delivering it at a higher pressure.

The purpose of the compressor is to circulate the refrigerant in the system under pressure, this concentrates the heat it contains.

What they do?

Anna Bieńkowska

Maciej Dutkiewicz

Grzegorz Fulczyński

Łukasz Gośniak

Maciej Karlic

Copeland milestones

• Copeland began from the refrigerator compressors

• Company developed 2 markets OEM and wholesalers, their main strength was aftersales service

• They moved into 3 segments: commercial, residential central, room units

• Their strong side is remanufacturing

• Outside experts are called in to make decisions about strategic manufacturing issues,

• Capital investments is the primary means for catching up with competition or achieving a competitive advantage,

• Start looking for long-term development and trends that may have a significant impact on manufacturing ability to respond to needs of other parts of the organization,

• The most progressive stage of manufacturing development which corresponds to the situation when competitive strategy rests to a significant degree on the company’s manufacturing capability.

Remanufacturing is a form of a product recovery process which differs from other recovery processes in its completeness:

A remanufactured machine should match the same customer expectation as new machines.

• Company was customer oriented but not market oriented

• “Welded Problem” with hermetic compressors – they designed CR line

• Energy crisis – they started to look on energy save products / energy efficient

Basic company problems

Rebuilding of a product to specifications of the original manufactured product using a combination of reused, repaired and new parts.

Remanufacturing

How is remanufacturing different from original manufacturing?

A major difference arise as a consequence of using worn-out, discarded or defective products as a primary material source.

Remanufacturing tends to be labor intensive rather than capital intensive.

What to do about Sidney?

By mid-1980, Copeland had focused factories operating at Hartselle and Rushville, and was planning a third at Shelby. Sidney’s collection of diverse product lines had been greatly reduced. But even after large Copes were moved out, the factory would still be home to eight Copelametic and five Copelaweld families.

Factory in Sidney

  • New plant manager experienced in machining and statistical quality control had been hired,
  • They produced strategic goals:
  • Quantum improvement in Copelametic quality,
  • Quantum improvement in Copelaweld costs,
  • Quantum improvement in systems,
  • Simplification of certain design specifications

Option #1

The first option is to divide plant into two parts:

  • Machining part (divided on two production line, with own foreman; those two lines finish at the same point)
  • Assembling part (employees could bump into other position if their qualification are needed – it increases labor relations)

Option #2

The second option is also to divide plant into two parts:

  • Copelameric production process
  • Copelweld production process

and separate the plant by a brick wall.

Changes included:

  • Separating parking lots, entrances, cafeteria for Copelametic and Copelweld employees
  • Prohibition to transferring to other production line

A little bit of history

• Copeland leveraged its sales to OEMs by strength in after-sales service. The company’s national network of 450 independent refrigeration wholesalers, developed during the 1940s and 1950s, guaranteed four-hour replacement should a supermarket case fail.

• The company developed two primary refrigeration markets for its semi-hermetic compressors: original equipment manufacturers (OEMs), such as Hussmann and Friedrich, and wholesalers.

Semi-hermetic Compressors

• In the 1940s, Copeland achieved a major breakthrough in compressor design. It encased both motor and pump within the same cast-iron housing, so that it was “hermetic,” or sealed.

• Since 1937, the Copeland Corporation had made compressor and condenser units for commercial refrigeration. Compressors were the most costly component of a refrigeration system, they soon became and remained about 90% of the company’s outside sales.

In the 1950’s:

• Company developed Hermetic compressors for smaller, commercial and most residential use.

• Copeland moved into three segments of the growing air conditioning market.

• Tough competition in the air-conditioning market.

• The compressors sold by Copeland’s wholesalers could be new, but since 1960 were more likely to have been rebuilt or remanufactured.

The “Welded Problem”

• During the 1960s and early 1970s, the company invested major resources in its hermetic compressors. Yet their contribution remained small, their costs high, and their failure rates just marginally acceptable.

Management referred to these

difficulties as the “welded problem.”

Moeller thought the high costs resulted from an absence of vertical integration and proposed that the company become more integrated.

• In 1975, Diggs assumed the presidency of Copeland. Immediately, he pressed for a CR design that was highly energy efficient rather than inexpensive and his insistence on improved reliability ultimately led to cost increases. The number of parts was reduced, all major components were standardized across models, and the number of models became few and standardized.

• Diggs devised a two-pronged attack: moving rebuilds out of Brooklyn Avenue and establishing clearly in the minds of customers the superiority of Copeland’s rebuilt products.

The term “remanufactured” would be used to herald the change and to distinguish the new products.

In order to escape the work-force disruption caused by bumping between original manufacturing and rebuilding, Diggs concluded that semi-hermetic remanufacturing would have to be located in Rushville, Indiana.

• Service teardown was next moved to Brooklyn Avenue.

Because of proximity, the two plants were governed by the same union and same seniority rules on bumping.

Diggs began to appreciate the need for a separate work force to perform rebuilding because of the specialized knowledge and skills required.

While the move to Brooklyn Avenue had reduced rebuild problems and improved aftermarket delivery, problems of materials control, layout, and capacity remained.

The “Focused Factory”

• The term “focused factory” was used for the first time at Copeland to refer to the Hartselle plant. After having seen the word “focus” in another company’s annual report, Diggs described Hartselle, in his own 1978 annual report, as a "focused plant, where the organization, manufacturing processes, and facilities are all concentrated on a single product - the CR compressor."

• Until mid-1976, it had been assumed that the CR would be made at Sidney, replacing existing Sidney Copelawelds. But a bitter three-month strike and customer concerns about potential disruption of supply, changed Diggs’s perspective. Moreover, the prevailing manufacturing mindset at Sidney also pointed toward a new location in Hartselle, Alabama.

Large Cope focused factory planned in Shelby, NC

Remanufacturing at Rushville, Indiana

Once Hartselle was operational and Rushville planning was underway, Diggs turned to the remaining products at Sidney and plan to transfer 20–40 horsepower models that were the heart of the refrigeration market to Shelby.

The world-class remanufacturing plant envisioned by Diggs had similar objectives. Like Hartselle, it was expected to differentiate Copeland products through manufacturing excellence. The production process would therefore be state-of-the-art, especially when compared with rebuilding.

New manufacturing in

Hartselle, Alabama

An outside consulting firm was called in for advice and concluded that Copeland would surely fail if it tried a new product, a new plant, a new process, and new management all at once. Nevertheless, Diggs decided to proceed with the new "focused" plant.

The Copeland Case

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