High Speed Machining Precision Tooling - Indobiz.biz

Shop Management
profi table work in the shop is the name
of the game, and the key is accurate
job costing. A busy shop fl oor does not
necessarily translate into higher profi t
margins. The shop must be busy with
the most profi table jobs possible.
Accurate costing will get back to the
estimators so they can clearly see what
jobs were successful and which ones
were poor performers. They will then
know not to accept the same bad job
down the road. A real-time bar coding
system on the fl oor, for example, can
eliminate a lot of guesswork by allowing
estimators to obtain an accurate job
history. It can help them identify areas
of miscalculation and where they need
to re-evaluate the manufacture of
particular items from an engineering
standpoint.
Throughput, scheduling and reduction
of labor for a given job are what shop
management personnel look to address
most. They want to try to get as many
jobs through the shop as possible to
reduce the number of days in-house,
from the time an order comes in to the
time the job ships. With the right data,
the shop can easily analyze which jobs
perform best under the given criteria.
Shops are busy, but typically they spend
the majority of their time on the jobs
with the lowest profi t margin. This type
of work can bog a shop down, keeping it
from capitalizing on the profi table jobs. A
suitable shop management system can
provide accurate costing, even broken
down by types of work, so a shop can
determine what types of jobs to take in
the future based on which ones bring in
the most profi t.
Evaluation Team
Because of their direct relationship
to the profi tability of the company, the
shop management personnel are the
most critical players in selecting the new
system. They are the ones who make the
decisions on how to effi ciently get more
jobs through the shop. What happens
on the shop fl oor is what determines
profi tability, but it is not uncommon for
the knowledge accumulated there to take
a back seat to the business decisions
of the fi nancial and IT personnel. The
shop foreman, purchasing manager and
estimators, though, must be involved in
the decision.
Yes, the IT department (or consultants
performing this function) can play a big
part in determining what hardware or
network is needed to run the system.
The IT department should also be
concerned with the tools that were used
in developing the new system. They will
have the best knowledge about whether
the system under consideration is up
to date using the latest tools and if it is
a mainstream package. They will have
a good idea of whether the software
will be around and manageable down
the road and if training will be readily
available. But IT will not be familiar with
the direct implications of the features
and functionality on the shop fl oor, and
therefore, should not drive the decision
of which solution is the best fi t.
The moral of the story is to look at the
big picture in what the new system can
do for the business. It is only human
nature for the people involved within a
company to be concerned solely with
how the new system will affect their own
job. But in the long run, it is the people
who make the biggest difference in the
company who should determine the
direction.
Software Demonstration
Before making a purchasing decision
about the system, a shop should make
sure that the software vendor takes the
company’s shop-specifi c data through
the software. While a demonstration with
sample data can provide a good overview
of the capabilities of the system, it does
not show how it will actually perform on
the job. The demonstration needs to be
geared toward solving the shop’s specifi c
needs, with real customer data.
That’s not to say that the customer
should take control of entering the data
during the demonstration. The software
is complex enough that, without training,
the customer may not be able to make
a reasonable judgement as to its
effectiveness. But if the customer’s job
information, purchasing information and
scheduling requirements are plugged in
by a trained operator and analysis from
the software is effectively presented
to him, he can then see whether the
software can help. The sales person
should ask as many questions about the
requirements of the shop as the shop is
asking about the software.
An integrated system that brings all
elements of shop management together
is modular by nature. As such, it is
important that the entire system was
developed and tested in-house by the
vendor. A shop management system with
a core developed by the vendor, and an
array of bolt-on modules contributed by
external sources can lead to confusing
and inconsistent operational methods.
From one level of functionality to the
next, the software should have the
same look and feel and architecture as
the original, core package. The modules,
then, become an advantage to the
buyer, providing the option to purchase
only the necessary functionality, with
the opportunity to add on later with little
or no learning curve to contend with.
Closing The Deal
After seeing the software demonstration,
it’s time to check the references. It is
always nice to visit other shops on-site
to see how they are using the system.
But more importantly, it is imperative to
talk to people who are in the exact same
industry, doing the same type of work.
It makes little sense for a buyer to visit
a mold shop down the street if a screw
machine shop identical to his is easily
accessible over the phone.
The vendor should supply a detailed
quote of what the customer will receive
and what options are available. Each
module should be listed with its
matching price, giving the customer the
opportunity to purchase only what he or
she needs. Other modules can be added
down the road when the shop is ready to
implement them.
Implementing the right manufacturing
software can signifi cantly improve a
company’s use of available information,
as well as increase productivity and
profi ts. As long as a shop has organized
and effi cient processes, the appropriate
people in line for software evaluation,
and the opportunity to use real data
in testing to solve specifi c problems, a
well-suited shop management system
should be within reach.
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indometalworking news Vol. 2 / 2008