Sample Shop

THE2020MODERNMACHINESHOPTOPSHOPSBENCHMARKINGSURVEY

  

ThankyouforparticipatinginModernMachineShop’stenthannualTopShopsbenchmarkingsurvey,whichenablesshopsofalltypesandsizestoseehowtheycompareagainstleadingU.S.machiningbusinesses.

Inworkingwithourcompany’sresearchandanalyticsteam,GardnerIntelligence(gardnerintelligence.com),toprovideadditionalvaluetoourreaders,wehavedevelopedthiscustomreportthatranksyourresponsestothesurvey’squantitativequestionsrelativetoothersurveyparticipants.Thegoalindevelopingthisreportisnotjusttoofferabaselineperformance“reportcard”ofsorts,buttohelpeliminatetheneedtorelyongutfeelingsasamethodofidentifyingandprioritizingyourshop’simprovementefforts.

Theinitialpagesofthisreportdescribehowtoreadthedataplotsforthevarioussurveyquestionsandprovideageneralperformancesummaryforyourcompany.Thatsummaryincludesyouroverallsurveyrank(amongthereportablesurveysreceivedthisyear)andlistskeymetricsforwhichyourcompanyisparticularlystrong,isonparwithothers,orperhapsshouldbetargetedforimprovement.

EachTopShopssurveyopensinJanuaryandrunsthroughFebruary.Wewillagainprovidefreecustomreportslikethisonetosurveyparticipantsasweworktoimproveourreportingefforts.Ihopeyoucontinuetoparticipateinourannualsurvey.

MatthewDanfordSeniorEditorModernMachineShopmdanford@mmsonline.com

1

Strengths

OnTrack

Opportunities

Yourresponseforthismetricisinthetop25%ofallresponses.Yourcompanyisaleaderinthismetric.

Yourresponseforthismetricisatypicalresponse,betweenthe25thand75thpercentiles.Yourcompanyiscomparabletotheindustrystandard.

Yourresponseforthismetricisinthebottom25%ofallresponses.Considerwhatcanbedoneinthisareatoimproveperformance.

CapitalSpending(9)QuotetoBookRatio(10)ScrapasaPercentageofParts(6)ScrapasaPercentageofSales(6)

StrengthsAnnualSalesGrowth(16)CAMProgrammerWages(20)CapacityUtilization(4)EstimatedAnnualSalesGrowth(16)FinishedFirstPassQualityYield(7)IncidentRate(21)LaborInvestmentperEmployee(12)LaborInvestmentperMachine(13)LaborTurnover(18)MachineOperatorWages(19)MachineUsage(8)MaterialInvestmentperEmployee(13)MaterialInvestmentperMachine(14)On-TimeDelivery(7)SetupPersonnelWages(20)SetupTime(5)SpindleUtilization(4)ToolingInvestmentperEmployee(12)ToolingInvestmentperMachine(14)

OnTrackCustomerRetention(9)EmployeeAge(11)EmployeeExperience(18)OrderLeadTime(5)SalesperEmployee(15)SalesperMachine(15) Abc

Abc

Abc

Abc

Abc

Abc

Opportunities

YourOverallPercentile:44%

PerformanceSummary

2

Thenumberfollowingeachmeasureinparenthesesisthepagenumberinthisreportwheretheoverallresultsforthatmeasureareshown.

REDThereddotandnumberindicateyourresponse,andtheoverallpercentileofthatresponse,comparedtoallshopscombined.

BLUEBluedotsrepresenttheresponsesofothershops—thedarkertheblue,themoreresponsesthatwereclosetothatvalue.

GRAYTheshadedareamarksthe75thand25thpercentiles,wherehigherpercentilesarebetter.Thebreakintheshadingrepresentsthemedian.

Missingareddotornumber?Therearetwopossiblereasons:1. Youdidnotprovideananswertothisquestion.2. Youprovidedananswer,butitwasanoutlier.

MedianThemedianisthevalue'inthemiddle'whenallvaluesareorderedfromlowesttohighest.Medianvaluescanbetterrepresent'middleofthepack'thanaverages,whichcanbeskewedbyevenoneextremedatapoint.

HOWTOREADYOURREPORT

3

TopShops OtherShops0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100..

SpindleUtilization

CapacityUtilization

65%49%

60.0%30%

TopShops OtherShops0%

10%

20%

30%

40%

50%

60%

70%

80%

90%100%

YourShop'sValue:YourOverallPercentile:

YourShop'sValue:YourOverallPercentile:

Spindlein-cuttimeasapercentageofmachineuptime(%)

Whythisisimportant:Machinetoolsonlymakemoneywhenthey'remakingchips.Shopstypicallyworktomaximizespindleutilizationbyminimizingdowntimeassociatedwithnewjobsetups,commonlyusingtechnologysuchasquick-changefixturing,on-machineprobing,etc.

Capacitybeingusedasapercentageoftotalplantcapacity(%)

Whythisisimportant:Capacityutilizationquantifieshowmuchofashop'stotalavailablecapacityisbeingused.Lowcapacityutilizationindicatestheinvestmentinsomeequipmentisn'tgeneratingincome,whichcanleadtoreducedprofits.

4

OrderLeadTime

SetupTime

YourShop'sValue:YourOverallPercentile:

YourShop'sValue:YourOverallPercentile:

Timebetweenreceiptofordertodeliverytocustomer(days,lowerisbetter)

Whythisisimportant:Orderleadtimeisameasureofhowlongittakestosatisfycustomers'needs.Shorterleadtimesprovidecustomersfasteraccesstopartsandtheabilitytoworkwithintighterdeadlines.Thiscanalsoenablefastertimetomarketfortheirnewproductdesigns.

Timeittakestoprepareanewjobformachining(minutes,lowerisbetter)

Whythisisimportant:Setuptimeindicateshowquicklyashopcantransitionfromonejobtothenext,maximizingspindleutilizationandminimizingmachinedowntime.

38.032%

TopShops OtherShops0

102030405060708090

100110120130140150160170180190

19.0088%

TopShops OtherShops0

25

5075

100

125150

175200

225

250275

300

325

5

MMSTopShopsMethodologyTopShopsSelectmeasuresarescoredandtalliedforeachsurveyparticipanttoidentifythetop20-percentbenchmarkinggroup. Thisbenchmarkinggroupisdesignated"TopShops". FourTopShopsareprofiledinModernMachineShop.

General· Sample:  ModernMachineShopmagazine

subscribersandvisitorstorelevantwebsites,blogs,etc.forbroadexposureandparticipation

· Fieldperiod: January7–March2,2020

· Basesize: 296reportablereturns

Survey· Distribution: Sentviaemailwithonlinelink

andpostedtorelevantwebsites,blogs,etc.

· Questionareas:  Machiningtechnology,shopfloorpractices,businessstrategies,humanresources,firmographicsanddemographics

· Responseoptions: Formats"normalized"toreducebiasassociatedwithshopcharacteristicslikesize,makingcomparisonsandcompetitionfairandreasonableacrossshops

Data· Tabulation:DatatabulatedforTopShops

andOtherShops

· Cleaning: Outliervaluesareremovedfromnumbers-basedquestionsusingadatabasedapproachandlogic

Aerospace

Appliances

Automotive

Die/mold

Electronics,computers&telecommsForming&fabricating(non-automotive)Furnituremanufacturing

Industrialmotors,hydraulics

Machinery/equipmentmanufacturing

Medical

Military

Off-road&constructionmachinery

Oil-&gas-field&miningmachinery

Powergeneration

Pumps,valves&plumbingproducts 35%

22%

36%

27%

44%

46%

53%

37%

7%

22%

29%

20%

37%

10%

60%

33%

21%

40%

30%

44%

44%

54%

32%

5%

24%

33%

17%

33%

8%

60%

TopShops OtherShops

Batchsize

SKUsproduced

CNCmachinesinproduction

Machineage

Employeecount

Numberofcustomers 35.024.08.0

13.070071.0

40.537.08.0

21.0854.550.0

BusinessAttributes:2019MedianValue

Contractshop

Captiveshop

Jobshop 59%

12%

29%

48%

9%

42%

ShopType

IndustriesServed

6

10% 20% 30% 40% 50% 60% 70% 80% 90%

AluminumStainlesssteels

MildsteelsBrass

ToolsteelsBronzeCopper

TitaniumHightemperaturealloys

CastironCompactedgraphiteiron

MaterialsMachined10% 20% 30% 40% 50% 60% 70% 80% 90%

Four-axispositioningUnattendedmachiningHighspeedmachining

PrototypingFour-axiscontouring

HardturningHardmilling

Five-axispositioningFive-axiscontouring

Micromachining

MachiningStrategies

10% 20% 30% 40% 50% 60% 70% 80% 90%

Indexers/rotarytablesMultipleworkpiecefixturing

Quick-changedevicesTombstones

PalletchangersHydraulics/pneumatic

MagneticchucksVacuumchucks

WorkholdingTechnology

10% 20% 30% 40% 50% 60% 70% 80% 90%

Through-toolcoolantdeliveryCarbiderecyclingprogram

LivetoolingonlathesCustom/specialtytooling

High-pressurecoolantdelive..On-machineprobing

ToolinventorymanagementCoolantmanagement

ToolpresettingShopfloortoolvending

ToolregrindingCoolantchillerToolbalancing

Minimumquantitylubrication

Tooling

10% 20% 30% 40% 50% 60% 70% 80% 90%

ERP/MRP3DCAD

CAMCMM

ToolpathsimulationJobestimating

2DCADSPC/Qualitymanagement

PLM

Software

10% 20% 30% 40% 50% 60% 70% 80% 90%

CMMinqualitydepartmentOpticalcomparatorsOn-machineprobes

MicroscopesVisionsystemsShopfloorCMM

PortablemeasuringarmsLasertrackers

InspectionEquipment

10% 20% 30% 40% 50% 60% 70% 80% 90%

ChiphandlingMistcontrolunits

Marking/engravingBarfeeders

MachingconnectivityBarpullers

MachineconditionmonitoringHeattreatment

Ballbarcalibration

AncillaryEquipment

TopShopsOtherSh..

OtherShopsTopShops

7

10% 20% 30% 40% 50% 60% 70% 80% 90%

VerticalmachiningcentersSawingmachines

Horizontalturningw/CNCHorizontalmachiningcenters

Lathes(non-CNC)Millingmachines(non-CNC)

DrillingmachinesGrinding(workpieces)

Twinturretw/CNCGrinding(Tools)

Swiss-typelathesWire/sinkerEDM

HoningmachinesVerticalturningw/CNC

BroachingmachinesLaser-cuttingmachines

FlexiblemfgsystemsWaterjet

Gear-cuttingmachinesPlasma/oxycuttingw/CNC

MachineType