http://blog.lenoxtools.com/industrial-metal-cutting/feed/

customer satisfaction metrics

Choosing Metrics that Matter for Your Fabrication Shop

January 10, 2015 / , , , , , , , , , , ,


As most manufacturing experts will attest, measurement is the only way fabricators can truly optimize their operations. By choosing the right metrics, today’s managers are able to quantify their successes, identify areas for improvement, and anticipate possible failures.

Unfortunately, knowing what to measure is the hardest part. When it comes to metrics, more is not always better. In fact, the goal should always be quality, not quantity. As this blog post from MESA International says, if you find your shop measuring things like parking space vacancy and food trucks, it’s probably time to re-evaluate.

Choosing the right metrics for your shop needs to be a strategic decision, which means there isn’t a sure-fire formula. However, there are some basic guidelines that can help you gauge if you are at least headed in the right direction. Below are a few tips that may help:

customer satisfaction metrics

Enhancing Customer Service in Your Metal Service Center

October 5, 2014 / , , , , , , , , ,


In today’s competitive landscape, many industries are finding that enhanced customer service is becoming more important than ever. Companies like Amazon are raising the bar on what customers should expect from a service provider, whether that means Sunday deliveries or using the latest technology to improve the purchasing experience.

Not surprisingly, the so-called “Amazon effect” has found its way into the manufacturing world. Supply chain consultant Lisa Anderson says she has seen this first hand with all of her manufacturing and distribution clients. On-time deliveries, she says, are no longer enough. Today’s customers are looking for suppliers that can offer faster lead times and value-added services that will benefit their bottom line. Sound familiar?

In this blog post, Anderson suggests several ways manufacturers can provide Amazon-type service in their own operations. From same-day delivery to collaborative programs, she challenges manufacturers to think outside their service “comfort zone” and consider new ways they can add value to their customer relationships.

This trend has already started to take root among leading service centers. As stated in this white paper from the LENOX Institute of Technology, more and more service centers are relying on value-added processing services like sawing, laser cutting, and parts fabrication for a more predictable stream of revenue. These additional services offerings are also helping these companies gain an edge over the competition.

What could this mean for your service center? What services could you add? The answer to those questions will vary based on the needs of your customers, your budget, and simply put, your willingness to change.

To help get your wheels turning, below are examples of three metal service centers that decided to enhance their current services in some way. While each company took a different approach, all three have found that value-added service has been beneficial to both their customers and their business.

customer satisfaction metrics

How to Bring Innovation into Your Machine Shop

September 20, 2014 / , , , , , , , , ,


In today’s world, most manufacturing executives wouldn’t exactly consider metal cutting to be the most innovative industry. Important? Yes. Evolving? Yes. But innovative? Probably not.

However, experts are saying that too many people underestimate the value that innovation can bring to any industry—or to any company for that matter. A recent article from Jeffrey Chidester, director of Policy Programs at University of Virginia, believes that innovation is the key to saving American manufacturing. And he’s not just talking about efforts from big names like Google and Apple.

“For over a century, America has produced individuals and ideas that have transformed how we interact with the world around us, and it remains the global leader today,” Chidester says in the article published by IndustryWeek. “Yet, while America continues to lead the way in disruptive innovations, its insatiable drive to open new frontiers sometimes overlooks the importance of innovating within current industries.”

Chidester goes on to argue that it would serve our country (and its industries) better to stop thinking “outside the box” and start thinking “inside the box” so that we can enlarge what we already have. This concept, widely used throughout Germany, focuses less on radical innovation and more on incremental improvement.

And while Chidester’s argument is focused more on smaller firms creating technology for the manufacturing industry—not necessarily the manufacturers themselves being innovators—the case for innovation holds. If innovation is the key to leadership, the question becomes: How can your machine shop innovate? If given the opportunity, what new ideas could your staff come up with to improve productivity, save costs, or expand your business? How can you “enlarge your box” to become an industry leader?

If we use Germany’s theory of incremental improvement as a basis for innovation, the concept seems less daunting. Instead of trying to revolutionize your operation, start with trying to find a new approach within the ordinary processes you follow every day. Not sure where to start? The Harvard Business Review offers four steps for “finding something original in the ordinary:”

What could this look like in a machine shop? D&J Technologies, a machine shop featured this white paper from the LENOX Institute of Technology, was able to expand its “box” by simply re-evaluating its outsourced services. After taking a close look at its operation, the shop discovered that sending out parts for nickel-plating was causing a bottleneck and making it difficult to guarantee on-time delivery of finished parts. By bringing plating in-house, D&J was able to provide its customers with an additional service, remove a production bottleneck, and speed up the delivery process.

A recent article from Modern Machine Shop goes even further by suggesting that shops should consider forming their own insurance companies to save money on taxes. “Section 831(b) of the Internal Revenue Code specifically creates a tax incentive for businesses to form their own small insurance companies that can provide them with a broad range of risk management capabilities,” the article states. “Basically, the captive insures those risks that a typical property and casualty insurance company does not, such as the loss of a large customer or a key employee.” (You can read the full article here.)

The point is that innovation doesn’t have to be about iPhones and analytical software, and it shouldn’t only be expected from tech firms. In fact, many people consider Disney to be an innovative company because of how it runs its business, not because of what it makes. Can your customers say the same thing about you?

customer satisfaction metrics

What Connectivity Could Mean for Industrial Metal Cutting Companies

August 15, 2014 / , , , , , , , , , , , , ,


If the words the “Internet of Things” and “real-time data” mean nothing to you or your metal-cutting operation, you may want to lean in. A growing number of industry experts believe these buzzwords may just transform the manufacturing industry.

“Today’s more powerful sensors and devices, connected to back-end systems, analytics software, and the cloud, are transforming industries, right now,” says Sanjay Ravi, Worldwide Managing Director, Discrete Manufacturing Industry at Microsoft in this blog post. “With the rise of these connected operations, manufacturing executives are not only finding new ways to automate and create efficiency, they are also focusing on a big new opportunity for revenue growth—services.”

In other words, forward-thinking manufacturers are finding that connecting their production equipment to the Internet and/or to other devices is providing insight into their internal operations they may not have been able to get otherwise. By gathering production data and then using software to make it understandable, they are improving efficiency and uncovering new service opportunities.

And according to Ravi, this is no passing trend. Quoting research from IDC (commissioned by Microsoft), Ravi says “manufacturers stand to gain $371 billion in value from data over the next four years.”

A recent article from Forbes echoes this sentiment, stating that factories that are connected to the Internet are more efficient, productive, and smarter than their non-connected counterparts. However, the article also says that only 10 percent of industrial operations are currently using the connected enterprise, which means 90 percent are missing out.

The way in which manufacturers can use connectivity will vary by industry and application, but as this article from O’Reilly Radar describes, the Internet of Things (IoT) and connectivity are revolutionizing manufacturing policies and procedures in two key ways:

  1. For the first time, managers can actually know what’s happening on the assembly line to both products and machinery in real time.
  2. That information can be shared, also in real time, with anyone inside or outside the enterprise who could improve their operating efficiency and decision-making with that real-time data.

As the Forbes article describes, companies like manufacturing giant GE, bread maker King’s Hawaiian, and Sine-Wave, a provider of technology solutions, are already taking full advantage of what many are calling the “information revolution.” At GE’s Durathon battery factory in Schenectady, NY,  for example, 10,000 sensors on the assembly line, along with sensors located in every single battery it produces, allow managers to instantly find out the status of production.

This is happening in the metal-cutting world as well. According to this white paper from the LENOX Institute of Technology (LIT), one metal service center developed an internal software system to automatically track the number of square inches processed by each band saw and each blade. At any point, the operations manager can go to a computer screen, click on a saw, and see how many square inches that saw is currently processing and has processed in the past. This has allowed the service center to easily track trends and quickly detect problem areas.

Tim Heston, senior editor at The Fabricator, also sees the opportunities sensors, data, and connectivity offer the metal fabrication industry and its supply chain. “Imagine a future in which you have trillions of sensors able to predict customer demand throughout the supply chain, monitor machine conditions to prevent unplanned downtime; and a future with machine tool technology and manufacturing methodologies allowing shops to change over between jobs within seconds (some of this technology is already here), all synced with customer demands,”  he says in a recent editorial. “In short, imagine a future in which the majority of activities in the supply chain add value.”

Does connectivity have a place in your metal-cutting operation? Could it? At the very least, these are the questions leading companies should be asking. Unless, of course, they are part of the 10 percent that is already connected.

customer satisfaction metrics

Taking Your Industrial Metal Cutting Organization from On Time to Agile

June 28, 2014 / , , , , , , , , , , , ,


As customers continue to redefine delivery expectations, manufacturers need to have strategies in place to not only meet those changing requirements but, even more so, anticipate them. Getting ahead of customer needs is the key to both retaining and gaining customers in today’s metals industry. As many leading manufacturers are discovering, agility is what sets you apart.

What does it mean to be an agile manufacturer? According to this overview from leanproduction.com, agile manufacturing “places an extremely strong focus on rapid response to the customer—turning speed and agility into a key competitive advantage.” An agile company is able to take advantage of short windows of opportunity and adapt to fast changes in customer demand. This tactic can be especially attractive for industrial metal-cutting companies that are trying to gain an advantage over offshore competitors.

Whether you are a high-production machine shop or a low-mix metal service center, below are a few best practices we gathered to help your industrial metal-cutting organization move from an “on-time” service provider to an agile, customer-focused partner:

 

customer satisfaction metrics

Should Your Machine Shop Undergo ISO 9001 Certification?

May 20, 2014 / , , , , , , , , , ,


As the industrial metal-cutting industry becomes more competitive, a growing number of machine shops are looking for ways to differentiate their operations, whether that means offering value-added services or implementing the latest lean techniques.

One best practice that many of today’s leading shops tout is ISO 9001 certification. The standard, described in detail here, is based on a number of quality management principles, including a strong customer focus, the motivation and implication of top management, and continuous improvement. The basic goal of the standard is to help companies provide customers with consistent, good quality products and services, which, in turn, often brings business benefits like improved financial performance.

Metal Cutting Service, a specialty shop based in City of Industry, CA, has reaped the rewards of ISO certification, including improved productivity and quality. The company, featured in a series of LIT case studies, estimates that quality has improved 20 to 30% since it became ISO certified more than 12 years ago.

However, ISO certification isn’t a quick fix nor should it be taken lightly. Like any company-wide initiative, it requires time, money, and strategic planning. Here are a few points to consider before undergoing ISO certification:

1 2