Outsourcing Machine Tool Maintenance

HydraForce Inc. started with a question: "Is our forte operating machine tools for maximum return or maintaining and repairing them?" At issue was the search for better resource utilization, explains Chris O'Bryan, HydraForce maintenance director. The company is a manufacturer of hydraulic cartridge valves, electro-hydraulic controls and custom integrated circuit manifolds designed for broad application in snowplows, Bobcat tractors, bulldozers, road pavers and transmissions. With a nearly 30 percent compound annual growth rate (CAGR), the company's small maintenance staff was stretched across multiple expanding facilities and an increasing number of machines performing a multitude of functions. Unwilling to compromise its stringent quality standards with tolerances in the millionths of an inch, the company turned to Sunnen Products Co., its primary machine tool manufacturer/supplier.

Adds O'Bryan: "Once we made the decision to outsource the Preventive Maintenance (PM) program, we were able to refocus on meeting the growing product demands. There was no question the machine tool supplier could deliver because they're the ones who built our 28 honing machines."

Looking back over the five years since outsourcing maintenance, O'Bryan refers to satisfying results. He reports stocking fewer parts due to efficient supplier responsiveness and lower costs when repair parts are required. "Our downtime has been cut by 33 percent, but our machines rarely go down anymore. With five thorough service visits a year, most problems are detected and fixed before a part ever fails."

Those outcomes mirror the expectations of Sun Hydraulics, a manufacturer of high-performance hydraulic cartridge valves and manifolds used in lifts, ladders, motors and payload equipment for tractors.

While a service contract can have a definite customer advantage, it also benefits the machine tool builder, says Wes McCullough, field service manager, Sunnen Products Co.

Sun was challenged with scaling up production based upon strong year-over-year sales. Sun's managers wanted resources focused on production, especially given its demanding quality and tolerance requirements, honing hydraulic valve surfaces to millionths of an inch.

The decision point came when a 12th honing machine was added, says Sun's Mike Smith, honing team leader. He says two considerations led to outsourcing maintenance: "What business are we in and what do our customers come here to buy?"

"That evaluation led to a breakthrough decision to implement a service contract to give us the cost savings we wanted across labor and inventory, as well as the equipment utilization needed on our two shifts."

The result: a broad-based payout.

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