Tag Archives: shop efficiency

Shop Efficiency Series Part 6 : Gauging Your Shop’s Efficiency with the Magnificent 7

We have dedicated a lot of time and brought out a lot of ideas in our Shop Efficiency series … but most have been based “on the shop floor” and have targeted machining … set-up … and tooling. Quite a few clients have written us to ask about the business side … more of the “How do I actually know if my shop is efficient” … which is a great question. So in this post we turn our attention to the shop management and specifically ways of gauging your shop efficiency.

magnificent_seven

I have listed a few of what I consider critical areas in this Shop Efficiency post … one’s that I feel are among the easiest to gauge and important to watch … what I call the Magnificent Seven. The points below are not in the order of most importance … just simply a list of all the metrics. Creating a spreadsheet and taking a daily count with most of these factors will allow you to see the results as they happen … and over time will reveal the ups and downs of the shop in general … and allow you to make corrections. You can start your journey on the first of the month … for example … and take a few minutes every day or every week to fill in the numbers … building the information in the spreadsheet as you go along. Make a graph … and watch what these factors will reveal. If you stick with it … you will be shocked … maybe happily … maybe not.

(1) Revenue Per Man Hour

Revenue per Man-hour is the annual revenue ( or do it by month ) divided by the total paid man-hours, including paid vacations and overtime. Keeping a running total of these activities and although this is a general look at the numbers … it can be very telling.

(2) Lead Time

Customer Order Lead Time includes order-entry through production to shipment for every job. Again, start a running list from the first of the month and carry on. This stat will reveal your shop efficiency as well as give you a chance to look at the quantity of work going through the shop … and the time frame it takes to go from order received to revenue received.

(3) Labor Turnover

quittingLabor Turnover Rate is the number of voluntary and involuntary separations divided by the typical number of employees. Hopefully you won’t be keeping a monthly log of this stat … but keeping a log of the turnover rate will still yield a telling tale. Although this stat has it’s own revelation … it also shows one key point regarding efficiency. When an employee leaves a company ( for any reason ) he / she also takes a piece of that company’s memory and experiences with them. That loss of memory or experience can lead to efficiency and productivity loss. A company that experiences high turnover rates needs to find ways to insure that experiences and memory don’t leave the building along with the employee. A low labor turnover rate … as the inverse … helps achieve and maintain high performance, productivity and efficiency.

(4) Completion Rate

This factor can be described as the On-Time Completion Rate. It is the percentage of goods delivered on time. This is … obviously … a direct result of shop efficiency. Keep a log for every job going through the shop and how it fared in the On-Time Completion Rate.

(5) Scrap and Rework

scrap

This factor is the Scrap and Rework as a percentage of shop sales. Scrap and rework cost time and money. Some scrap and even some rework is inevitable … but this factor may be most useful as an indicator of how well things are going out on the shop floor. An high scrap and rework percentage is an early tip-off that something … or someone … needs a deeper look.

(6) Machine Uptime

Total Machine Uptime is the hours of production as a percentage of the total operating hours for the shop per week. In other words, what percentage of an average shift are each of your shop’s machines running. Basically put … your employees get paid every day whether they are productive or not … idle machines are not making that money even though the employees are getting paid. Therefore, how much a machine is up and running becomes an important factor for determining just how productive and profitable that shop is.

(7) Machine Availability

Machine Availability is the time machines are actually available for use compared to the time they are supposed to be available. Unscheduled maintenance or other problems will reduce a machine’s expected availability … and impact production schedules negatively which in turn reduce the ability of a shop to deliver product on time.

There will be some out there that utter the phrase “I know all this just by being out in the shop every day.” And that may be true. But seeing the numbers on “paper” ( it might be your computer screen ) is much more telling … and much more emphatic … and makes the point much more clearer.

So … there you have it … the Magnificent Seven. Keeping a close eye on these factors or metrics will most definitely put your shop’s efficiency in glaring focus … and will most likely open your eyes and mind to whole list of other metrics that may be pertinent to your particular shop and operation. Taking the time to develop and review your information as it develops will prove to be more than worth the effort … and keeping the faith will insure your shop is on the straight and steady track.

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Kenney Skonieczny – President
Kentech Inc.

Shop Efficiency Series Part 2 : The Infamous MILLING Vise !!

Part 2 in our Shop Efficiency Series will expand a little on Part 1 … and key in on one of the most common workholding options used in the milling world … the vise. Some of the ideas we will present might be old hat for the more professionals in the group … but it’s never a bad idea to refresh and re-look at this subject. For me … something new always clicked when I looked at my vise set-up or holding configuration. Ideas usually led to different set-up ideas … how to position the vise or vises … as well as jaw ideas … material, change-over and others. So we thought it was a good plan to outline some of the newer options available … and to get your idea machine cranked up.

FIRST – DUMP the knee mill vise !!

We still see a lot of shops using an old style knee mill vise … or some revised configuration of one … on their new and modern CNC machine. Ya … you know the ones ….

old_vises

If these look all too familiar to you … the first step in improving your workholding and basically your whole shop floor efficiency is to dump these vises and step up to today. Sure in a pinch … they are OK … but you should really think about putting ’em on Ebay and stick some “hobby machinist” ( whatever the hell that is ) with these toys. If you have a CNC machine and want to be a pro … here are your new alternatives.

new_vises

Here a just couple of important reasons to dump your 1950’s vise for a new CNC vise :

  1. SIZE and SPACE : Without the “wings” sticking our from the sides, these types of vises are slimmer and trimmer ( not to mention lighter ) and will take up less room on your table or fixture plate. That allows for more efficient use of your machine travels and table capacity.
  2. MULTI PART MACHINING : configurations can include double vise jaws … again, multiple part machining. The whole concept of efficiency is to perform the most machining while the tool is in the spindle. That may entail multiples of the same part or combining different parts during the tools cycle.
  3. QUICK CLAMP : The ever present annoyance of rapping your fingers while turning the handle to clamp can also easily be eliminated by incorporating a power clamping system such as a pneumatic wrench instead of the handle … or if you want to “crank it up a notch” … check out the CHIC video below :

SECOND – Jaws for the Modern World

Now that you have upgraded the vise itself … it’s time to incorporate new holding options into the vise. Almost every shop with a CNC vise uses some sort of aluminum vise jaw that has been machined to accept the stock to be machined. It’s a basic … it’s a staple … if you don’t do it it’s time to step into the 70’s.

So the most basic step is to create a CNC program that will machine a blank aluminum vise jaw to fit your CNC vise. That way anytime you need some jaws … call up that proven program and machine some jaws for stock … or keep some on the shelf. Done.

But hold on … now there’s an even better method. We have talked about these jaws before in Making Chips and we are high on their use and rewards. No cap screws … 2 min changeover … and tons of configurations make quick change vise jaws the new go-to vise jaws. Here’s a sample video from Carvesmart … one of our favorites :

THIRD – Don’t forget the TABLE

Part 1 in our series dealt with how to bring your VMC machine table into the 21st century. Combining your new table configuration with these new vise and jaw options can really expand your efficiency. This is a really important read … if you missed that post … here’s the link : http://kentechinc.biz/shop-efficiency-series-part-1-cycletime-vs-workholding/

FOURTH – Don’t forget to MOVE THAT VISE !!

Always placing the vise so it looks nice in the middle of the table causes a lot more harm than you might think. Here’s a past Making Chips post dealing with that subject in detail … http://kentechinc.biz/move-that-vise/ … required reading if you use a vise ( and seriously, who doesn’t ?? ).

RESULT – New Shop Floor Efficiency … with the sky as the limit.

As you can see … these are some fairly simple but really important changes that will greatly effect your shop floor efficiency. From faster set-up changeovers … to more advanced configurations … to faster part load / unload … to simply better cycletimes … these tried and proven changes mean more profits … a happier workforce … with the sky as the limit. We are also confident that as you implement these changes … your “machinist” mind will think of even bigger and better changes now able to be implemented with the upgrades that come with the ones outlined here.

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Please come back for our next installment in our series on Shop Efficiency.  Until next time … Happy Chip Making !!

Kenney Skonieczny – President
Kentech Inc.