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Tips for Industrial Metal-Cutting Companies Transitioning to ISO 9001:2015

January 1, 2017 / , , , , ,


It’s a new year, which means companies are getting a jump start on major projects and working toward new goals. For many manufacturers, this includes transitioning from the ISO 9001:2008 quality management standard to the updated ISO 9001:2015 standard. Although the revised version of the standard was published back in September 2015, companies have until September 2018 to complete the transition. The following is a quick summary for industrial metal-cutting companies that are considering recertification.

Revision Details

While many would say that ISO’s most recent revision is “significant,” as explained here in an article from the Association of Manufacturing Excellence (AME), the changes are more evolutionary then revolutionary. “These new guidelines are less prescriptive than previous versions – an effort to adapt to the working conditions of the 21st century,” the AME article states. “ISO 9001:2015 is the result of the intensive study from experts in about 95 countries throughout a three-year period. It’s a tool to help improve efficiency while maintaining the ability to adapt to today’s quickly changing work environments.”

Some of the key updates in ISO 9001:2015 include the introduction of new terminology, restructuring of some information, and increased leadership requirements. Another key change is that the new update incudes ten clauses, whereas the previous version included only eight. According to Luc Marivoet, a quality expert at Paulwels Consultant, the first three clauses in ISO 9001:2015 are largely the same as those in ISO 9001:2008, but there are considerable differences between ISO 9001:2008 and ISO 9001:2015 from the fourth clause onwards. More specifically, the last seven clauses are now arranged according to the PDCA cycle (Plan, Do, Check, Act). You can read more about the clause changes here.

Overall, most experts agree that the newly updated standard is more relevant and has been written for the benefit of organizations, not auditors. ISO says that the revised standard was designed to bring companies the following benefits:

Steps to Update

As noted above, companies have a three-year transition period from the date of publication (September 2015) to move to the 2015 version. This means that, after the end of September 2018, a certificate to ISO 9001:2008 will no longer be valid.

Why go through the recertification process? That question is discussed in more detail here, but in general, it is widely accepted that ISO 9001 certification provides companies with several benefits, including improved quality and cost savings. In fact, the eBook, Five Performance-Boosting Best Practices for your Industrial Metal-Cutting Organization, lists ISO 9001 certification as a key strategy for industrial metal-cutting companies that want to improve their performance.

There is no question that transitioning to the new standard will take considerable time and resources. ISO offers the following tips for companies that are transitioning to ISO 9001:2015:

  1. Familiarize yourself with the new document. While some things have indeed changed, many remain the same. A correlation matrix, available from ISO/TC 176/SC 2, will help you identify if parts of the standard have been moved to other sections.
  2. Identify any organizational gaps which need to be addressed to meet the new requirements.
  3. Develop an implementation plan.
  4. Provide appropriate training and awareness for all parties that have an impact on the effectiveness of the organization.
  5. Update your existing quality management system to meet the revised requirements.
  6. If you are certified to the standard, talk to your certification body about transitioning to the new version.

Additional Resources

To further assist industrial metal-cutting companies that are seeking ISO 9001:2015 certification, the LENOX Institute of Technology has gathered a few helpful resources:

How might recertification benefit your industrial metal-cutting organization?

quality

Machine Shops Benefit from Standardized Work Processes

December 20, 2016 / , , , , , , , ,


With a slew of improvement strategies, tools, and technologies available, many managers have lost sight of one of the simplest ways they can optimize the performance of their operations—standardized processes.

In fact, according to the Lean Enterprise Institute, standardized work is one of the most powerful, but least used lean manufacturing tools. “By documenting the current best practice, standardized work forms the baseline for kaizen or continuous improvement,” the organization explains here. “As the standard is improved, the new standard becomes the baseline for further improvements and so on. Improving standardized work is a never-ending process.”

As defined by iSixSigma, standardized work is the most efficient method to produce a product (or perform a service) at a balanced flow to achieve a desired output rate. It breaks down the work into elements, which are sequenced, organized, and repeatedly followed.

There are several benefits shops can gain from standardizing processes. The following are just a few:

Many shops are experiencing these and other benefits of standardized processes. Hard Milling Solutions (HMS), a shop featured here in Modern Machine Shop, standardized its parameters for specific material and cutting tool combinations to manage a highly varied workload with minimal labor. “Our primary goal with this system is to ensure every programmer cuts the same way, and gets the same results,” Corey Greenwald, owner of HMS, tells Modern Machine Shop. “We want customer needs to dictate what comes out of this company, not the experience and ability of any one individual.”

Quality Industries (QI), a metal fabricator based in La Vergne, TN, have seen the benefits of standardized work processes across several business areas. “For QI, the move to standardized work created positive scenarios and brought both obvious and underlying benefits to the business,” the fabricator says here on its website. Below are just a few of the ways QI has made standardization work in its operations:

  1. Process Documentation for All Shifts. Historically, many of QI’s productive processes were understood only inside the heads of experienced team members. Creating precise documentation to supplement and replace this “tribal knowledge” helps the fabricator to critically evaluate each manufacturing process to ensure that the most productive sequences and work practices were being documented. In addition, the documentation ensured that a given process could be duplicated on all shifts, and in all work cells and departments.
  2. Reductions in Variability. Once production processes were standardized, variability in product characteristics and quality was greatly reduced. While slight variations still existed due to different machine types, makes or models or tooling types, QI says most of these variations were eliminated because of the achieved consistency of steps and sequences in both material work and downstream activities. This aspect of Standardized Work also delivered tremendous value to the customer, who could rely on consistent finished goods.
  3. Easier Training for New Operators. In any manufacturing environment, bringing new personnel up to speed quickly is a challenge. For QI, standardized work and well-crafted documentation simplified the process. The best process documents not only spelled out steps in clear language, but were also highly visual—with images, charts, drawings and any other helpful illustrations. This training resource provided a continuous reference for the operators and enabled a new communication system for the team.  In the QI shop floor environment, team leaders and others from outside the department were able to determine the level at which each operator is qualified on machines, work cells, and specific operations.

In today’s fast-paced market, process control is essential for shops that want to stay competitive and maintain the high quality customers demand. As stated in the industry brief, “Strategies for Improving Workflow and Eliminating Bottlenecks in Industrial Metal-Cutting,” today’s industrial metal-cutting companies can’t afford costly mistakes that can slow down or stop production. By implementing standardized work processes, many shops are finding they can not only increase productivity, but reduce variable(s?) variable overhead? and improve several other business areas that contribute to the bottom line.

Are your shop’s metal-cutting work processes standardized? 

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CEO Survey Reveals Three Key Focus Areas for Industrial Metal-Cutting Companies

December 15, 2016 / , , , , , ,


Industrial manufacturers find themselves competing in an increasing uncertain global market with rising customer expectations and ever-evolving technology, according to the 19th Annual Global CEO Survey from PricewaterhouseCoopers (PwC).

The survey found that only 24% of manufacturing CEOs think global growth will improve over the next 12 months compared to 34% last year, and 23% think it will worsen compared to 18% the prior year. In addition, just 29% of industrial manufacturers are confident of revenue growth in the next 12 months, but when given a three-year span, 46% of manufacturers think they’ll see growth.

Data also suggests that CEOs believe business risk has increased.  According to the survey, 55% of industrial manufacturing CEOs said opportunities have increased during the past three years; however, 61% believe the number of threats has increased.

The PwC survey, which interviewed 205 industrial, manufacturing CEOs in 53 countries, revealed that industrial manufacturing companies are working hard to deliver results year after year, but most understand that the future brings complex challenges. The survey highlights three key focus areas for today’s industrial manufacturing CEOs:

  1. Great expectations and influences. When asked to describe their company’s purpose, the survey found many industrial manufacturing CEOs believed it was centered on filling customer needs or developing first-class products, but others said it was creating a great place to work for employees or achieving social goals. And the influences that impact that purpose and overall strategy are many. As one would expect, customer demands drive final products, but 89% of industrial manufacturers say their customers and clients have an impact on their overall business strategy. Supply chain partners weigh-in, too, with 88% of CEOs planning to address social and environmental impacts of their supply chain. In addition, competitors and peers are also a focus, with a third of CEOs saying they too have a high impact on strategy.
  2. Technology and talent. Executives know Industry 4.0 has arrived and are working to invest in new innovations and train their workforce to capitalize on their investments. The survey found that 90% of industrial manufacturing CEOs plan to make changes in how they use technology to assess and deliver on wider stakeholder expectations. However, with new technology comes new skill requirements, and 76% of respondents say they are concerned about the availability of key skills to grow their business. In response, more than half of CEOs are changing their talent strategy.
  3. Measuring and communicating success. Data showed that 60% of survey respondents said innovation is the number one area where the business could do more to measure the impact and value for stakeholders. Not only are CEOs realizing they need to measure and track business success, but that they also need to communicate that success. The survey found that 68% of CEOs believe R&D and innovation has the potential to drive better engagement with wider stakeholders. Together with customer relationship management, data and analytics take the top three spots—validating smart manufacturing will be a driving force for industry leaders.

Like any industrial manufacturer, PwC’s survey findings can help metal-cutting organizations prepare for another challenging, but transformative, year. As reported in the case study, “Best Practices of High Production Metal-Cutting Companies,” sometimes this means investing in technology. Jett Cutting Service, for example, hit a record-setting 1.1 million cut parts last year and attributes the milestone to smart investments. “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 said. “The newer technology also allows us to offer competitive pricing, which has led to many new customers.”

However, Jett Cutting also understands that it needs to be just as committed to its employees and its customers. The metal-cutting organization also has a strong training program for new employees, an ISO certification program to maintain high quality standards, and additional training for existing employees every time new equipment or software is purchased.

For many metal-cutting companies, 2016 certainly hasn’t been the best of years, but it also hasn’t been the worst. As PwC’s survey confirms, no one is confident about what next year will bring; however, industrial manufacturing leaders aren’t standing idle. Jett Cutting and many others are investing in new technology and training now to prepare for growth in the future.

How is your industrial metal-cutting company investing in the future?

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Training Strategies for Today’s Advanced Metal Fabrication Shops

December 10, 2016 / , , , , , , , ,


With all the buzz around connectivity and “smart” factories, it appears as if the manufacturing industry is on the brink of a major shift. Some experts, as we reported here, are calling this Industry 4.0. Even companies in more mature industries like metal fabrication are starting to realize that the demands of today’s customers are not only changing the scope of their work, but the way in which they actually need to do their work.

“Investments in fabricating technology, information systems, and employees will be necessary to stay on top of the growing complexity in the metal fabricating business,” Dan Davis, editor of The Fabricator, says here in a recent editorial. “There’s no other way around it in this world of massive customization in manufacturing.”

While most industry leaders understand the capital and technology investments that may be necessary in the near future, many fail to realize the growing importance of investing in employees and, more specifically, in their training. In today’s lean manufacturing world, metal fabricators and other industry metal-cutting organizations have been conditioned to think in terms of efficiency. This means that secondary activities like employee training are often neglected because they don’t directly contribute to the bottom line.

However, as stated in the brief, “Strategies for Training and Maintaining Talent in Industrial Metal-Cutting Organizations,” research shows that investing in areas like training can provide a host of benefits, including better quality, faster on-time customer delivery, higher revenue per operator, and lower rework costs. “Put simply, companies can’t afford to neglect one of its greatest assets,” the brief states. “By investing resources into the workforce, industrial metal-cutting leaders can better equip themselves for today, as well as the future.”

For shops that want (or need) to beef up their training programs, an article from Foundry magazine provides some insight on what it takes to create an effective training program. According to the article, training programs should include a strong combination of education, engagement, and use: “Training must educate by teaching skills, transferring knowledge, cultivating attitudes and hitting other specific targets. But training that is purely educational doesn’t get results. That is why training must present information in ways that are engaging, interactive and require the learner to think and use the information learned.”

The article goes on to describe a method often used in training known as VAK Attack. VAK is an acronym describing the three ways people learn, as spelled out below:

According to the Foundry article, effective training should include all three of the VAK principles so that employees can better learn and absorb the information presented. The author also suggests hiring an outside trainer to ensure long, impactful results. (You can read the full article here.)

It would be hard for anyone to ignore the advancements of the manufacturing industry; however, too many companies are ignoring the role employees play in today’s increasingly complex production environments. By investing in employees and their training, today’s metal fabricators can prepare for the future and, more importantly, stay competitive today.

How is your fabrication shop investing in employee training?

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Enhancing Customer Service In Your Metal Forge

November 25, 2016 / , , , , , , , , ,


There is no question that customer expectations are changing. Companies like Amazon have raised 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 industrial manufacturing. 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.

While same-day delivery may not yet be feasible, industry leaders are finding several ways to enhance customer service. According to the brief, “Strategies for Improving Customer Service and On-Time Delivery in Industrial Metal Cutting,” the following are just a few of the strategies industrial metal-cutting organizations are using to better meet the demands of their customers:

Many forges and other industrial metal-cutting companies are also diversifying their services to better serve new and existing customers. In fact, Ampco-Pittsburgh Corporation has built diversification into its corporate strategy. Earlier this month, the Carnegie, PA-based forging operation announced the acquisition of ASW Steel, Inc., a steel producer based in Welland, Ontario, Canada.Commenting on the acquisition, John Stanik, Ampco-Pittsburgh’s CEO, said:

“This acquisition is a very important element in Ampco-Pittsburgh’s strategic diversification plan. ASW’s proven broad expertise in flexible steel refining methods will provide us with the capabilities to manufacture the additional chemistries needed to expand our reach in the open-die forging market. The transaction also enhances our ability to grow in markets in which we currently participate and to add new markets for customers in the oil and gas, power generation, aerospace, transportation, and construction industries.”

What does it take to keep your customers satisfied and, more importantly, gain their loyalty? In today’s demanding market, most industrial metal-cutting companies would say high quality, competitive costs, and on-time delivery. However, those have always been the hallmarks of any good manufacturer, and some might argue that the last few years weeded out any companies that even remotely lagged in these key areas. How you “amp up” your customer service game will largely depend on what you already have in place, but the above strategies are just a few ideas to get you started.

What is one thing you could do to improve customer service in your forging operation?

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Improve Your Metal Service Center Operations with Standardized Processes

November 5, 2016 / , , , , , , , , ,


Process improvement strategies are nothing new to manufacturing. As an industrial metal-cutting company in today’s challenging market, chances are you’ve spent time finding ways to reduce costs while increasing output to keep up with rising material costs and customer demands.

However, with a slew of improvement strategies, tools, and technologies available, many managers have lost sight of one of the simplest ways they can optimize the performance of their operations—process control.

Process control can help metal service centers ensure consistent quality, and minimize blade and machinery failures that can cause a workflow bottleneck. While there are many ways to implement process control, standardization is perhaps the easiest and most successful way to keep employees moving in the same direction.

Standardized practices, as defined by leanmanufacture.net, dissect larger, overall processes into simple, easy-to-follow steps that any operator can easily perform. This standardized approach allows operators to perform tasks the same exact way every time, which results in using resources, such as time and raw materials, more efficiently.

According to the Lean Enterprise Institute, standardized work “is one of the most powerful, but least used lean tools. By documenting the current best practice, standardized work forms the baseline for kaizen or continuous improvement. As the standard is improved, the new standard becomes the baseline for further improvements and so on. Improving standardized work is a never-ending process.” The approach consists of three elements:

  1. Takt time, or the rate at which products must be made in a process to meet customer demand.
  2. The work sequence in which an operator performs tasks within takt time.
  3. The standard inventory, including units in machines, required to keep the process operating smoothly.

Benefits of standardized practices include:

Not convinced such a simple approach can make a big impact? Case in point—McDonald’s, the world’s largest restaurant chain. As cited in this article by consulting firm WIPRO, McDonald’s has standardized it “manufacturing” process for hamburgers so well that most of the organization is focused on growing the business, product development and marketing.

As described here, metal manufacturer ThyssenKrupp reduced work-in-process by 40%, reduced operator movement by nearly 5,000 feet per day and improved productivity by 9% by implementing standardized work at two working stations at its Sao Paulo, Brazil plant.

In today’s fast-paced market, process control is essential for metal service centers that want to grow against competition. According to the industry brief, Strategies for Improving Workflow and Eliminating Bottlenecks in Industrial Metal-Cutting, as the pace on the shop floor increases, metal service centers can’t afford a blade failure or costly mistakes that can slow down and stop production. Today’s metal service centers must focus on the process to identify and correct any mistakes on the shop floor immediately. By implementing standardized work, metal service centers not only gain insight into potential workflow bottlenecks, but also have a solid foundation for a continuous improvement plan going forward.

Even if your metal service center has a cutting-edge improvement plan in place, take a step back and look at your processes. Are they standardized? Have they gotten too complex? By going back to the basics and standardizing work practices, managers can optimize operations and ensure that every employee—and every process—is successful, every time.

What process controls and improvements have you implemented at your metal service center? Is standardized work one of them?

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Using Predictive Analytics in Ball and Roller Bearing Manufacturing

October 30, 2016 / , , , , , , , , , , , ,


In today’s competitive and quickly changing market, manufacturers are finding that it pays to be proactive—not reactive—in their strategic approaches. That’s why a growing number of industrial manufacturers are starting to take a serious look at advanced technologies like predictive analytics, which allows them to not only measure performance, but to also predict and prevent future challenges.

According to Deloitte’s 2016 Global Manufacturing Competitiveness Index, more than 500 senior manufacturing executives from around the world ranked predictive analytics as the number one technology vital to their companies’ future competitiveness. As reported here, another report from Aberdeen Group shows that 86 percent of top-performing manufacturers are already using predictive analytics to reduce risk and improve operations, compared to 38 percent of those companies with an average performance and 26 percent of those with less than stellar results.

The trend has found its way into industrial metal cutting as well. According to the LENOX Institute of Technology’s benchmark study of more than 100 industrial metal-cutting organizations, companies can gain additional productivity and efficiency on the shop floor by “investing in smarter, more predictive and more agile operations management approaches.”

What is Predictive Analytics?
Predictive analytics utilizes a variety of statistical and analytical techniques to develop mathematical models that “predict” future events or behaviors based on past data. As the Deloitte study explains, this allows companies to uncover hidden patterns, relationships, and greater insights by analyzing both structured and unstructured data.

In a manufacturing environment, companies can use predictive analytics to measure the health of production equipment and detect potential failures. However, the possibilities are virtually limitless. According to one analyst’s blog, manufacturers could potentially use software and predictive analytics to forecast potential staffing or supply-chain interruptions, such as a flu outbreak that could cause a temporary personnel shortage or even a blizzard that could disrupt deliveries.

Bearing manufacturing leader Timken has taken a different approach and is using predictive analytics to improve inventory optimization and supply chain performance in the automotive aftermarket sector. As reported by SearchAutoParts.com, Timken is leveraging sales history, registration data, and other information, along with complex analytics, to improve sales and reduce costs.

“Timken’s catalog team matches parts and vehicles, and combines that information with vehicle registration and replacement/failure rates, along with internal sales data,” the article explains. “Crunching that data using proprietary algorithms helps them predict how many parts will be needed in a given geography, and how those parts sales will fall within the premium aftermarket, economy aftermarket and OEMs.”

Common Use Cases
Because predictive analytics is an emerging technology, applications are typically specific to each manufacturer’s products and processes—as in the Timken example. However, an article from Toolbox.com describes four common use cases for predictive analytics that are applicable in most manufacturing environments:

  1. Quality Improvement. Improvements in databases and data storage and easier-to-use analytical software are the big changes for quality improvement. Standard quality improvement analysis is being pushed toward less technical analysts using new software that automates much of the analytical process. Storing more information about products and the manufacturing process also leads to analysis of more factors that influence quality.
  2. Demand Forecast. Predictive analytics takes historical sales data and applies forms of regression to predict future sales based upon past sales. Good predictive analytics modelers find additional factors that influenced sales in the past and apply those factors into forecasted sales models.
  3. Preventative Maintenance. Predictive analytics increases production equipment uptime. Knowing that a machine is likely to break down in the near future means a manufacturer can perform the needed maintenance in non-emergency conditions without shutting down production.
  4. Machine Utilization. Predictive analytics applications for machine scheduling combines forecast for demand with product mix to optimize machine utilization. Using new predictive analytics techniques improves accuracy.

Predicting Success
While there is no question that predictive analytics is still new to many ball and roller bearing manufacturers, industry leaders know that proactive strategies are key in today’s uncertain market. Finding ways to anticipate future events and reduce unplanned downtime can not only help your operation gain efficiency but, more importantly, help you stay competitive.

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Tips for Cutting Titanium Alloys in Your Machine Shop

October 20, 2016 / , , , , , , , , ,


As end markets like aerospace and medical look for ways to improve the strength and reliability of their products, many machine shops are seeing increased use of harder materials like titanium alloys.

However, there are a few characteristics that make titanium alloys more challenging to work with than many other metal materials. To help machine shops tackle this often tough-to-cut metal, the following is a brief overview on titanium alloys and the most effective cutting tools and methods for working with this material.

Taking on Titanium
Titanium alloys are praised for their strong, yet lightweight properties. The material also has outstanding corrosion resistance. As explained here by Modern Machine Shop, these properties make the material an ideal choice for aircraft designs,medical devices, and implants.

However, titanium can be tricky to work with due to its reactivity at higher temperatures and its tough composition. “Since titanium’s heat conductivity is low, it will flex and return to its original shape a lot more easily than steel or high-nickel alloys,” explains an article from American Machinist. “The downside of this is experienced during machining: the heat from the operation does not transfer into the part itself or dissipate from the tool edge, which can shorten tool life.”

The article goes on to say that this issue is compounded by the tight tolerances demanded by most customers.  “For aerospace, the tolerances are to within a thousandth of an inch, and if violated, the part must be scrapped,” the article states. “Achieving such tolerances while using such a malleable material is difficult, and wear on the cutters increases significantly compared to similar efforts with nickel and chromium alloys.”

The technical article, “Machining Titanium and Its Alloys,” published by jobshop.com provides key insights into the chemistry behind titanium alloys and lends the following tips for its successful manufacturing (You can read the full article here):

Choosing the Right Blade
Like any material, one crucial aspect of cutting titanium alloys is choosing the right tool. As industry experts, The LENOX Institute of Technology (LIT) offers critical advice concerning blade selection in its white paper, Characteristics of a Carbide-Friendly Bandsaw Machine. Since titanium alloys are a stronger and harder material, they pose a unique cutting challenge best solved by carbide blades. Using a carbide-tipped band saw blade not only allows for the successful cutting of titanium alloys, but it simultaneously offers longer blade life and faster cutting as well.

LIT’s white paper further elaborates on the benefits of the carbide technology by providing a real-life comparison between a bi-metal and a carbide blade. The test produced the following results:

Ultimately, the higher speed and feed rate of the carbide blade enabled it to make the cut 13 minutes faster, translating into 160 more parts produced during an 8-hour shift than its bi-metal counterpart.

Meeting Material Demands
Material trends will come and go, but metal-cutting companies that want to successfully serve existing and potential customers need to be prepared to adapt to the industry’s changing material needs. As the use of titanium grows, today’s machine shops need to understand the material’s unique characteristics and machining requirements so they are fully equipped to tackle every one of their customers’ demands.

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Using DMAIC Methodology in Your Industrial Metal-Cutting Organization

October 1, 2016 / , , , , , , , , ,


Being a leader in today’s industrial metal-cutting industry is tough. In addition to dealing with external challenges like high inventory levels, falling commodity prices, and a slowdown in China, managers still have to deal with operational pain points such as process and workflow bottlenecks, resource allocation, and delivery schedules.

As stated in the eBook, Five Performance-Boosting Best Practices for Your Industrial Metal-Cutting Organization, thriving in today’s unstable market requires metal-cutting executives to focus on continuous improvement. “Whether implementing a lean manufacturing tool to improve processes or investing in training to develop people, proactive leaders are focused on making positive changes in their operations so they can quickly respond to today’s changing customer demands,” the eBook states.

One methodology many leaders are using as part of their continuous improvement initiatives is DMAIC. As explained here by American Society for Quality (ASQ), DMAIC is a data-driven quality strategy used to improve processes. Although it is typically used as part of a Six Sigma initiative, the methodology can also be implemented as a standalone quality improvement procedure or as part of other process improvement initiatives such as lean.

DMAIC is an acronym for the five phases that make up the process:

According to an archived article from Six Sigma Daily, the heart of DMAIC is making continuous improvements to an existing process through objective problem solving. “Process is the focal point of DMAIC,” the article explains. “The methodology seeks to improve the quality of a product or service by concentrating not on the output but on the process that created the output. The idea is that concentrating on processes leads to more effective and permanent solutions.”

DMAIC can be used by any project team that is attempting to improve an existing process. For example, SeaDek, a manufacturer of non-skid marine flooring, used DMAIC methods to reduce major inventory stockouts in 2015. The company went from 14 major stockouts in 2014 to one stockout in 2015, resulting in a materials cost savings of more than $250,000 and improving on-time delivery from 44 percent the previous year to 95 percent in 2015. (You can download the entire case study here.)

Paul Bryant, senior OPEX manager of LENOX Tools, says there are two key ways companies can identify when and where to apply the DMAIC method:

  1. Target highest scrap cost by machine and/or cost center
  2. Areas with low production yield or poor quality (i.e., high defective parts per million)

In his experience, Bryant says that DMAIC can be especially helpful in lowering scrap costs. Last year, LENOX made the strategic decision to start making wire internally; however, the blade manufacturer was working 10-15 hours overtime to keep up with weekly demand. “Using the DMAIC process, we reduced scrap and improved production speeds by 19.2%, resulting in $75K plus an additional $30K in overtime reduction,” Bryant says. “In 2017, we expect to pick up an additional 15% in production using the DMAIC methodology.”

Of course, the real payoff is what DMAIC can bring to the customer. “The ultimate expected benefit is that customers receive products of the best quality, on-time, and at lowest possible costs,” Bryant says.

Could DMAIC help your industrial metal-cutting organization? To learn more about this Six Sigma continuous improvement tool, click here for a detailed DMAIC roadmap or here for an overview and short video tutorial.

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Automation ROI for Industrial Metal-Cutting Companies

September 1, 2016 / , , , , , , , ,


For years, experts have touted the benefits of automation. The efficiency and quality improvements are perhaps the biggest draw for industrial metal-cutting companies, especially as customer demands for faster turnaround and tighter tolerances continue to increase.

However, automation may not always be the most cost-effective solution. According to the white paper, Tackling the Top 5 Challenges In Today’s Metal-Cutting Industry, in today’s uncertain market, managers need to strategically determine whether or not allocating resources to automation and technology will offer a true return on investment.

“For example, precision circular saws can outpace band saws 3 to 1 when it comes to cutting certain materials; however, band saws are more economical and offer cutting versatility,” the paper explains. “Therefore, managers need to carefully consider their costs, customer base, and long-term goals before upgrading equipment.”

Of course, this leads to several questions: What does that look like in practice? How do others determine whether or not automation is worth the investment? Who is—and isn’t—investing in automation?

Over the summer, the Manufacturers Alliance for Productivity and Innovation (MAPI) released the results of a national survey that attempted to answer those questions and more. According to the Executive Summary, the survey polled U.S. manufacturers, gathering data on the prevalence of actual and planned automation investment, the drivers of and impediments to automation investment, and the criteria for evaluating new automation technologies.

In general, the study found that actual, planned automation investment is high among U.S. manufacturers. The following is a summary of the survey’s major findings: (You can read the full report here.)

According to Cliff Waldman, one of the MAPI analysts who conducted the study, one of the most interesting findings of the survey was automation activity by company size. Specifically, the survey revealed that automation investments increase as firms grow larger. “Among other things, larger companies have greater output over which to spread the cost of investments,” Waldman writes here on the U.S. Chamber of Commerce web site.

Waldman adds, however, that the prevalence of automation activity among small manufacturers is also notable. “By allowing for significant efficiency improvements in at least some aspects of production, it is possible that automation makes it easier for manufacturing entrepreneurs to overcome often significant barriers to entry as well as for small manufacturing companies that might otherwise have exited the market to stay and compete,” he states.

Waldman concludes that automation technology “does not offer a complete solution to lagging productivity,” but he believes that “an effective strategy for the development of a globally competitive manufacturing sector requires attention to the promise of new technologies being implemented worldwide.”

In other words, manufacturers both small and large still have a lot to gain from investing in automation. In fact, this article from manufacturing.net states that automation is one of the top-three investments manufacturers can make this year. Do you agree?

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