Modern Machine Shop

AUG 2013 TOP SHOPS

Modern Machine Shop is focused on all aspects of metalworking technology - Providing the new product technologies; process solutions; supplier listings; business management; networking; and event information that companies need to be competitive.

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one-off Commentary Leveraging Benchmarking This award-winning shop looked to Top Shops benchmarking data to help guide its continuous improvement efforts. This month, we offer analysis of our 2013 Top Shops benchmarking survey (see the article on page 8). The survey enables you to 1) see how your business and machining metrics stack up against others, and 2) review the equipment and practices that leading shops are applying. derek korn senior editor dkorn@mmsonline.com "Benchmarking should be part of every shop's continuous improvement plan." We've gotten positive feedback from a number of shop owners and managers who value these surveys. One such person is Paul Hayes, who says he used Top Shops benchmarking data to help guide positive change at Able Tool after being promoted to company president a couple of years ago. In fact, the Cincinnati, Ohio shop recently received a manufacturing award from Cincy - The Magazine for Business Professionals in honor of its successful continuous improvement efforts. The strides Able Tool has taken to improve its operation yielded a 5.2-percent increase in gross profits last year, and the company expects a 10-percent increase this year. 6 MMS August 2013 mmsonline.com/topshops During a recent visit to the nearby shop, Mr. Hayes explained that both the company's sales and its overall shopfloor performance were stagnant at the time he moved from general manager to president. Employees seemed disengaged and management was so busy with day-to-day duties that it couldn't focus on the big picture. He knew a culture change was needed to enable the business to prosper and grow. Mr. Hayes and his management team tapped a few sources in their initial efforts to turn things around. First, they solicited feedback from shopfloor employees about the process inefficiencies they encountered each day and what tools might increase efficiency. Second, they tapped the expertise of TechSolve, a Cincinnati-based organization that provides consulting and R&D; services to the manufacturing community. Third, they reviewed Top Shops benchmarking data to learn about the s h o pf l o o r c o n c e pts, p ro c e s s e s a n d equipment other shops were leveraging. Mr. Hayes says he appreciates the Top Shops program because the best-practices intelligence it offers can be particularly challenging for small shops like Able Tool to access. In reviewing the Top Shops data, Mr. Hayes noted that the vast majority of

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