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Productivity, Hiring, Technology

What It Takes To Be A High Performing CNC Shop

October 7, 2016

This is the sixth year that Gardner Business Media, has surveyed CNC shops to find the strongest performers and determine what they are doing to rise to the top of the list. As in the past, there are many statistics that reveal a significant difference between how the top 20% of shops operate versus the rest.

A few of the key performance indicators for top shops identified by the survey:

  • Median spindle uptime for top shops is 72% versus 60% for all others.
  • Profit margins were 15% for top shops, 8% for others.
  • The quote-to-book ratio for top shops was 61% compared to 50%.

For this report, Gardner asked industrial management consulting firm, Harbour Results, Inc., to review the survey findings and identify the key practices or strategies these high performing shops share:

Technology Investment

  • Those shops that spend more than 10% of revenue on capital improvements are 4% more profitable.
  • These shops operate younger, more efficient machines.
  • The less profitable shops tend to use older machines, have more scrap and longer lead times.

Apprenticeship Programs

  • Shops with apprenticeships have 13% shorter setup times and higher machine utilization.
  • Shops with apprenticeships also have lower scrap rates, shorter order lead times and a greater number of production runs.

Continuous Improvement Programs

  • These initiatives, such as lean manufacturing and Value Stream Mapping (VSM), result in fewer quality problems, faster deliveries and greater spindle usage.

The Executive Summary for this study is loaded with specifics regarding the makeup of the Top Shops, the kinds of machines, software and other equipment they use, and the shop floor practices they employ.

Being a Top Shop pays great dividends and Gosiger can help you get there with the latest machining technology, engineering assistance, robotic automation and technical service and support.