Top Shops Executive Summary

2011 Executive Summary

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Executive Summary SHOPFLOOR PRACTICES & PERFORMANCES Machine availability, spindle utilization and overall equipment effectiveness (OEE) indicate how well shops make use of their capital equipment. For all the surveyed shops, machine availability as a percentage of sched- uled uptime increased from 80 percent in 2007 to 85 percent in 2010. However, only the Top Shops showed improvement in spindle utilization, jumping from 71 percent three years ago to 80 percent in 2010. The other shops reported spindle utilization of only 60 percent for both years, hinting that no progress has been made to improve the percentage of time their machines are in the cut. On the other hand, all shops reported better values for OEE (the product of the percentages of machine availability, quality yield and optimal rate at which the equipment operates). This figure increased for all shops from 70 percent in 2007 to 75 percent in 2010. ALL SHOPS TOP SHOPS OTHER SHOPS Similarly, all the surveyed shops have improved setup times in recent years. In 2010, the median setup time for the Top Shops was 2.5 hours versus 3 hours in 2007. For the other shops, these times were slightly longer at 3.5 and 4 hours, respectively. Data shows that 72 percent of the Top Shops have implemented lean manufacturing in some way versus only 43 percent for the other shops. Nearly 42 percent of respondents that identified themselves as job shops are following some form of lean manufacturing. However, what “lean” means to each shop can greatly differ. In some cases, a shop may con- sider itself lean by simply implementing 5S workplace organization. Ap- proximately 27 percent of surveyed job shops do 5S. Notably, 54 percent of the Top Shops are practicing 5S. 2010 Machine availability (as % of scheduled uptime) Median Average 75th Percentile 25th Percentile 0 10 20 30 85.0% 84.9% 71.7% 70.9% 72.0% 95.0% 95.0% 95.0% 37.5% 40 50.0% 50.0% 50 60 70 80 90 100 87.5% 2010 Spindle utilization time (in-cut time as % of machine uptime) 65.0% Median Average 75th Percentile 25th Percentile 0 10 20 30 40 80.0% 60.0% 64.1% 70.9% 61.4% 80.0% 88.8% 75.0% 50.0% 50.0% 50 52.5% 60 70 80 90 All Shops Top Shops Other Shops 100 SPONSORED BY AMT amtonline.org | IMTS imts.com 15

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