Strategies for Expanding a Shop the Right Way

Reader Question:

We have funds available for capital equipment and want to make sure we spend it wisely. We are having trouble deciding on whether we want another machine or perhaps some automation. How would you go about making this decision?

Miller’s Answer:

Not too long ago, this choice didn’t exist — or was at least much easier. If you had money at the end of the year for capital expenditures, the choice was another machine. Automation was expensive and cumbersome and only made sense for the highest volume manufacturers. Now, we are spoiled for choice with automation that is cheaper, easier to implement and more flexible than ever to make sure everything is the perfect fit.

However, with this boom of new automation options, more and more shops are facing a similar decision as yours. Do I buy a new machine or buy robots? It’s very easy to get paralyzed by all the directions you can go with this, and I often hear shops question the decision they made in hindsight. To give us the best chance of success, let’s begin by breaking this decision point down to its simplest forms.

When it comes to upgrading equipment for a shop, there are three basic routes: (1) We can add more of a current capability, (2) we can add an entirely new capability or (3) we can make current capabilities more efficient. To put this into context, we can buy another machine just like the ones we already have, we can buy a new machine platform to do new types of work or we can automate a current system to make it more efficient or run more hours.

Doubling down on a current capability is a viable strategy for a growing shop and it’s often the most obvious. If you have success with a particular machine, then buying another to do more of the same is a logical move. In this strategy, familiarity is the biggest driving factor because we can start making chips as soon as the machine is installed because training is not a hurdle we need to consider. Also, that machine is a known entity, and we know exactly what it will and won’t do. This familiarity should mean instant success, right? In my experience, the answer is often no.

The reason is that unless you have exactly double the amount of work for the second machine to absorb, that asset won’t be utilized fully. This is where the regret often sets in. This comfort in the known often makes shops blind to the benefits of the other two principles.

When it comes to adding a new capability, this usually means an entirely new machine platform. A new machine platform can enable a shop to continue some of their current work with some adaptations, while unlocking new opportunities for more complex, lucrative jobs. For most shops, this means the jump to five-axis, but it can take on other forms too. A more expensive, more accurate machine, even with the same axes, can unlock new levels of quality over a commodity machine. A new CAT50 machine can unlock new opportunities in hard metals, or simply bigger part sizes. A machine that is much faster may be the answer to unlocking higher-volume work. Looking beyond machining centers, this new capability could also mean adding a CMM to increase quality for your customers.

Opposite of the first principle of adding more of a current capability, adding new capabilities comes with some additional hurdles a shop needs to consider. For example, if you’re getting into five-axis, you will need to revisit your CAM situation, while a new CMM may require special training. Understand that your team needs time to learn the new platform, not just the controller, but also the new asset’s strengths and weaknesses. It will take time before that new capability is meeting all the promises it made on paper.

The last principle is making current capabilities more efficient. While we aren’t necessarily adding any new capabilities with our existing machinery, automation can allow us more use of that same equipment to make current work more efficient or allow us to absorb more volume of that same type of work. This comes in the form of unattended hours, perhaps some degree of error proofing, or solves a labor shortage we may be experiencing. Jumping into automation certainly has a learning curve as well, but is overcome with proper preparation.

Hybrid solutions should absolutely be part of the discussion, but this is often where shops can struggle and get too deep into the details. There is some nuance we need to apply here. For example, a shop with a three-axis vertical machining center (VMC) could buy the same machine model, but also purchase the upgraded spindle, the fourth axis rotary or perhaps the through-spindle coolant system. This would increase a current capability while also adding a few new smaller capabilities. A shop could also buy a brand-new platform and the accompanying automation system if funds are available, adding a new capability and its inherent efficiencies from day one.

My suggestion in these cases is to focus on the three primary principles first to find the solution which best addresses the shop’s broader needs, and then to introduce the hybrid solutions if there is some budget left over.

Take time with your team to work through this decision in some type of white board session. Your machinists may know where efficiency lacks with current work, but your sales staff may know of opportunities that could be captured with new capabilities. Working through the three principles will help the team identify the most pressing need or biggest opportunity for your shop. Good luck with your new purchase, whatever path you may take.