How Should Ball and Roller Bearing Manufacturers Allocate Resources for their Metal Cutting Operations?
February 28, 2015 / blade selection, circular sawing, Cost Management, employee incentives, Employee Morale, human capital, LIT, maintaining talent, operator training, productivity, quality, resource allocation, skills gap, strategic planning
Today’s cost-sensitive market makes it difficult for managers to gauge how they should strategically allocate resources within their industrial metal-cutting operations. Is it wise to make high-tech capital investments in an uncertain economy, or would manufacturers be better served to invest in their human capital to close the growing skills gap?
These types of questions can be especially challenging in a mature market like ball and roller bearing manufacturing, where seasoned employees may be resistant to change, both in terms of company culture and technology. However, leaders need to be sure they are making strategic decisions that benefit both the company and their employees, and avoiding the trap of making allocation decisions because “that’s the way they’ve always been done.”
To help ball and roller bearing manufacturers discern how to best allocate resources within their operations, below are some resources that discuss some of the trends and strategies today’s manufacturing leaders are using to get ahead in today’s market:
- Be Smart about Getting Smart. The ideology that industry leaders use cutting-edge technology carries some truth, but that doesn’t mean that every manufacturer should go out and invest in the latest high-tech connectivity software. That is, not without at least doing a little research. Check out this article from IndustryWeek, which does a great job of explaining how managers can start to make a business case around “smart” manufacturing investments, including data capture, connectivity, remote control and analytics. In addition, business consultancy ARC Advisory Group has developed a handful of evaluation and selection guides to help industrial manufacturers determine which technologies they should adopt to get the best return on investment.
- Small Upgrades Can Pay Off. Having the right tools for the job is critical in metal-cutting, which means that even a small upgrade in tooling has the potential to make a huge impact. According to the white paper, The Top Five Operating Challenges Ball and Roller Bearing Manufacturers Face in Industrial Metal Cutting, managers should re-evaluate their tooling choices every few years, even if they feel satisfied with current results. While testing new blade technologies can be a time-consuming endeavor, it can certainly pay off if the end result is faster cutting times and lower costs. Recent advancements in tooth geometries, wear-resistant materials, and blade life are providing significant improvements in productivity and quality. For example, the tips of many precision circular saw blades are now made with cermet, a composite material composed of ceramic and metallic materials. These blades can cost more upfront, but they are said to offer longer blade life as well as provide exceptional heat and wear resistance when cutting solid, carbon-based metals.
- Human Capital Counts. While manufacturers have historically invested in machines over people, the looming skills gap is starting to change that. As more baby boomers retire, industry reports like this one from Deloitte and The Manufacturing Institute have been suggesting that manufacturers focus on investing in their human capital, both in terms of training and recruiting. And according to a recent article from manufacturing.net, companies may also want to consider increasing the wages they pay their employees. The trend, the article states, is moving in that direction. “We have seen an increase in jobs, but not an increase in pay, but that is starting to change,” Traci Fiatte, president of General Staffing at recruiting firm Randstad, tells manufacturing.net. “Even in entry level positions, the salaries are staring to creep up, and that is what you would expect to find when demand is high and supply is low.” Regardless of how managers decide to address the skills gap, the overarching lesson it is teaching the manufacturing industry is clear: human capital counts.