December 1, 2015 / agility, circular sawing, continuous improvement, Cost Management, industry news, LIT, optimization, productivity, quality, ROI, strategic planning
Last month, executives from the metal forming, fabricating, and welding industries visited Chicago to walk the aisles of McCormick Place for Fabtech 2015. As to be expected, the trade show featured hundreds of new products and technologies. However, many are saying this year’s show was about more than just the latest gadget.
“A certain excitement permeated this year’s show, and it wasn’t just about this incredibly fast laser, that press brake that eliminates setup time, or that welding power source that connects to the cloud and simplifies welding parameter selection,” writes Tim Heston, senior editor, in a column appearing on thefabricator.com. “It was about how all these technologies and more can work together to make a shop better.”
Indeed, it seems the attitude of Fabtech attendees mirrors what several industrial metal-cutting leaders have found: Investing in new technology isn’t about simply cutting a little faster or reducing set-up time. It is about optimizing processes so that every area of the company can benefit—from shop floor operations and maintenance to quality and finance. As Heston writes: “…a fast laser alone won’t ship a product out the door any faster. Even the smallest shops now are tackling front-office planning, scheduling, and often investing in software to streamline information flow throughout an organization.”
In other words, managers should look at the big picture before adopting any new “groundbreaking” technologies. How will this new technology affect your entire operation? What other processes down the line will be impacted by the benefits of the new technology? Do these other processes need updating as well?
That’s not to say, however, that companies should shy away from investing in new technology. In fact, a recent article from manufacturing.net stresses that cutting-edge technology is critical in today’s marketplace.
“The manufacturing sector is a fast-changing, cut-throat industry,” Martin Hurworth, states in the manufacturing.net article. “Firms who make their living there should be constantly looking to invest in new technologies to make their operations smoother, smarter and swifter, not to mention more cost-effective. In a globalized world, staying at the sharp end has never been more important.”
According to Hurworth, strategic technology investment allows companies to improve in three key business activities:
- Sustain Growth and Meet Demand
- Ensure Quality
- Innovate Effectively
Jet Cutting Service has found this to be the case. Last year, the industrial metal-cutting company reached a record-setting 1.1. million cut parts in just one month—310,000 more cut parts than it typically produces on a monthly basis. “I would like to believe that our increase in sales is due to investing in the latest cutting technology, which increases our capacity and production capabilities,” Vice President Mike Baron says in a case study from the LENOX Institute of Technology. “The newer technology also allows us to offer competitive pricing, which has led to many new customers.”
Although Baron admits the financial commitment can be risky, he finds that many technologies are worth the investment. “We need to constantly keep on top of the latest technology out there,” Baron states. “We don’t want to spend extra money, but if it’s going to cut 20 percent quicker than I do now…then we’ll go after it.”
For example, a few years ago, Baron had eight different circular saw blade manufacturers come into his factory to see which blades performed the best. While the process was time-consuming, Baron said it was a huge learning experience for his team and ended up giving him a 20-percent cost savings in the long run.
Will the latest metal-cutting tool or gadget be the answer to all of your operational challenges? Of course not. However, when carefully considered from a strategic, long-term perspective, it could set your company on a growth trajectory you may not have achieved any other way.
What metal-cutting technology investments could positively impact your bottom line?