feature
process families.
Top Shops are also more likely to use
machine monitoring and connectivity tools.
This technology provides real-time process
data that helps them make the proper
improvements more quickly. They also do
a better job of providing employees with
the advanced tools they need where
they need them. For instance, Top Shops
are more likely to have sophisticated measurement equipment, such as CMMs and
measurement arms, near production areas
on the shop floor rather than only in the
quality lab.
A greater number of shops are integrating machine-tending robots, which isn't
surprising given today's challenges of a
small pool of skilled labor and growing
healthcare costs. While the percentage of
Top Shops using automation has remained
relatively steady over the last three surveys
(right around 16 percent), a much higher
percentage of the other surveyed shops
said they have robots (14 percent) compared
to past surveys.
The shopfloor practices Honors Program
Winner is NASDAQ-listed WSI Industries,
a contract shop located in Monticello,
Minnesota. WSI pursues ongoing production programs and divides its work into
three primary sectors: high-volume aluminum work, repetitive batch work and largepart machining for primarily energy-industry customers.
Benjamin Rashleger, WSI's president,
says the shop's customers expect their
suppliers of parts and assemblies to have
advanced, accurate machining equipment.
WSI does. Therefore, what separates WSI
from others, he believes, is the shop's
additional value-adding services and shopfloor processes that maximize efficiency
14 MMS August 2013 mmsonline.com/topshops
and workflow. For instance, the company
creates cells that include additional processes such as parts cleaning, testing and
assembly. Some integrate automation, too.
WSI also employs a number of shopfloor
CMMs and a measurement arm so employees can perform precision measuring routines on the shop floor. These and other
examples are highlighted in this video.
BuSIneSS StrategIeS
In terms of absolute spending on capital
equipment, Top Shops and other shops
outlay similar amounts. However, a comparison of capital equipment spending per
gross sales reveals that Top Shops spend
much more of their revenue on capital
equipment than other shops. In 2012,
this value was 10 percent (median) and
13 percent (average) for Top Shops, compared to just 2 percent and 6 percent,
respectively, for other shops. The data is
similar to our last two surveys, demonstrating that Top Shops continually make significantly larger investments in the latest
machine tool technology.
Top Shops' investment in advanced
equipment and focus on establishing processes to leverage that capacity is reflected
in their financial performance. As shown
in Table 4 on the previous page, their profit
margin is nearly double that of other shops.
Their growth rates are significantly higher,
too. The median growth rate for Top Shops
is approximately 100 percent higher, and
the average rate is 50 percent higher.
Top Shops have higher gross sales per
machine, too, at $266,123 versus $152,000
(in median values).
Top Shops are also more effective at
quoting jobs. The quote-to-book ratio is a
metric tracked primarily by job shops, but