Our December PMPA Business Trends Report for December 2017 finished at 125 for the year, up 6.8% over last year’s 117.
It has been a great year for our precision machining shops, and “Busy” is the watchword.
Our sentiment indicators for the year ahead were positive as well.
PMPA members can read the full report here
By the way, we predicted in May that our year end sales level would be 126.25- an error of just 1.25% from the actual value of 125!
Press representatives desiring a copy of the report please contact gro.apmp@reuabnehcrikm to get a copy of the full report or to arrange an interview.
We are confident that 2018 will be a similarly strong year for our industry- starting in 1st quarter where our indicators are all strongly positive.-Net Sales, Lead Times, Employment and Profitability.
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Tag: Lead Times
Here are 5 things that can unnecessarily add costs or delays to your Precision Machined Part:
- Small Order Quantities
- Material Selection
- Special Diameter Holes
- Close Tolerances
- Unnecessarily Fine Surface Finish
Small Order Quantities are a two edged sword. Minimizing inventory on hand is an important Lean concept; but often the cost of separate setups for small runs is more expensive than holding a modest inventory. If your parts are standard to you, getting the economic order quantity correct can save you money by minimizing what you have to pay for set up costs. (And by the way, we’re working like crazy to reduce those setup costs!)
Material Selection can increase costs of production and can mean missed deliveries if the grade is “just not commercially available.” Engineering requirements for the end use must be paramount, but the material contribution to manufacturing costs need to be evaluated as well. The reduction in suppliers, suppliers’ inventories, and every one’s attention to ‘Lean’ along the supply chain means that the ‘perfect material’ for that part just might be a six month lead time rolling lot accumulation with no assurances of delivery…
Special Diameter Holes are often overlooked as a cost driver. But with every non standard hole diameter specified, The suopplier will need to purchase higher cost non-standard drills, reamers, and plug gages. Lead times for specials could also mean your parts are delayed while tools are made for your job. Are you certain that a standard hole size won’t do the job needed?
Close Tolerances are a source of pride to the craftsmen of the precision machining industry. Our people, processes, and engineering can assure that the hole delivered is as specified. But if you specify tolerances that are ‘closer than needed,’ the extra attention, more frequent tool adjustments and changes, and loss of productivity to make those adjustments can add incrementally to the cost. We can make what you need- are you asking for more precision (cost) than you need?
Unnecessarily Fine Surface Finish, like close tolerances can add higher costs when specified unnecessarily. What is the reason for the finish specified? While today’s modern tooling and machines are able to provide better surface finish than machining technology of the distant past- for some requirements a separate grinding, shaving, burnishing or other treatment may be required. If there is not really a close fit, sliding fit, and there is no movement on/of the surface, over-specifying surface finish can needlessly increase your part costs.
Practicing ‘Lean’ and minimizing waste is not just the responsibility of the producer. As the 5 items above point out, eliminating needless waste is also a responsibility of the customer.
As my grandparents- who came through the WWI, The Great Depression, WWII rationing, and a host of other economic and life challenges- used to say to me:
I think it’s great advice.