An issue facing many precision-component manufacturers is what machining requirements they should sub-contract to third parties and what they should undertake in-house. The choice is not necessarily clear-cut, as there are benefits associated with each option.
Established in 1990, the Dorchester-based sub-contract specialist Engineering Control Supplies Ltd (ECS) used to sub-contract some of its machining requirements to a select number of local companies.
The good relationships and strong partnerships developed over many years with these hand-picked suppliers meant that there were very few issues relating to quality or lead times — the usual ‘bug bears’ associated with sub-contracting work out.
However, winning multi-million-pound long-term contracts has changed the situation dramatically; over the last two years, ECS has invested in 10 used machine tools from Bristol-based Machine Tool Sales Online (
www.machinetoolsalesonline.com), and two new CNC machines from MACH Machine Tools Ltd (
www.machmt.co.uk), again based in Bristol.
ECS is ISO:9001-certified, has 30 staff and offers its customers a design-to-manufacture service that includes concept design, component manufacture (from prototypes and one-offs through to small- and medium-volume batch production), fabrication, assembly and testing — predominantly for mechanical, electro-mechanical, hydraulic and pneumatic equipment for land, sea and air systems.
The company also has a subsidiary on the same site, ECS Special Projects Ltd; this engineering design consultancy was responsible for the Cobra sub-sea ordnance (mine) neutralisation and disposal system, and the VAL (non-lethal Vessel Arrest Launcher) marine security system, which was used during the 2012 Olympic Games for harbour security.
Cost-down pressures
Luke Anderson, ECS’s operations director (pictured top with MTSO's Dave Andrew), says: “A significant proportion of our work is repeat business, and we operate in a number of high-technology sectors where accuracy, reliability and cost-competitiveness are essential.
While we had no issues with our previous business model, increasing cost-down pressures on our customers and long-term agreements signed with a number of them, stipulating that we would contribute to overall cost reductions, meant we had to review our manufacturing operations to ensure our long-term growth and profitability.”
This review meant that ECS’s machining arrangements were put under the spotlight.
Contracts director Kim Perrin said: “We knew that being able to undertake most of our machining requirements in-house would make us more flexible and better able to manage our work-flow and production scheduling. We also knew that, with the right mix of machines, we would be able to reduce costs.”
Mr Perrin knew that building up ECS’s in-house machining capacity would raise a number of considerations, including: the initial cost of CNC machine tools, as well as the on-going cost of materials, tooling, coolant, work-holding, fixtures and maintenance; and machine tool programmer and operator costs, along with the hiring of skilled staff and, where appropriate, training them. Other considerations included issues relating to re-organising the machine shop, and the impact on other areas associated with manufacturing, such as inspection.
New and used
Due to the lengthy lead times normally associated with new machines, the directors of ECS decided to buy a mix of high-quality used machines and new machines; it was a meeting at the 2014 Southern Manufacturing Show with representatives from Bristol-based used machine tool specialist Machine Tool Sales Online (MTSO), which was exhibiting at the event, that proved to be profitable for both companies.
Mr Perrin said: “We were looking for a particular manufacturer’s CNC mill and CNC lathe, but having met MTSO’s Dave Andrew, we discussed the possibility of us acquiring two used Haas machines — a machining centre and a lathe — that he would soon have available.”
The two machines — a Haas SL 10 slant-bed lathe and a Haas TM 1P vertical machining centre — were ordered at the show and were installed a few weeks later. They were soon followed by further used machines from MTSO, namely: a Hardinge GS-200 MSY (multi-tasking lathe), with driven tools, Y axis, sub-spindle and Samsys bar-feeder; a Hardinge Elite 8/51 lathe with sub-spindle, full C-axis capability on both spindles and bar-feeder; a Hwatcheon Hi-Tech 200B lathe with driven tools and bar puller; and two Bridgeport vertical machining centres — an XP1000-30 and an XP600.
“We liked MTSO’s approach and their integrity. All the machines have performed as expected, and they have helped to improve our productivity and profitability. We opted for multi-tasking machines to help us machine parts in fewer set-ups, reduce cycle times and avoid production bottlenecks.”
The relationship that developed between ECS and MTSO has seen the former invest in two new CNC machining centres from MACH Machine Tools Ltd, a company established by Dave Andrew and now run by directors Matt Andrew and Marc Bowers. Pictured right is Luke Anderson with MACH Machine Tool's Matt Andrew.
Mr Anderson says: “We were introduced to MACH Machine Tools by Dave and Matt Andrew in late 2015. “Our investment plans meant we also needed two high-rigidity large-capacity multi-tasking vertical machining centres, and we liked the look of the MACH 1020 Linear VMC.
“This comes with a fourth-axis unit, a BT40 10,000rev/min spindle with through-coolant capability, a 24-position ATC, and a Fanuc 0i-MD control with extended memory. Moreover, machines were available immediately — and extremely cost-competitive. We bought two of them, and they haven’t missed a beat since they were installed. Most recently, we bought a MACH VS-1 turret-type manual milling machine from MACH Machine Tools.”
In conclusion, Mr Anderson says: “Bringing our machining capabilities in-house has paid dividends. We are more productive, more flexible and better able to control our manufacturing costs. The importance of developing strong mutually profitable relationships — first with MTSO and subsequently with MACH Machine Tools — as part of the in-house investment process, should not be underestimated.”