Turnkey Illusions – How to Avoid Pitfalls When Outsourcing Welding Automation

April 6, 2010

“You can easily purchase high-performance welding automation “turnkey” without needing in-house welding expertise, because the integrator is “the expert”.” Really? That’s a familiar idea. But is it true, or… is it just a manufacturing management myth?
It’s a MYTH.

Chances of success? Probably less than 10%. That’s how you purchase poor to mediocre welding automation performance, like most of your competition has, which usually produces small profit margins. Is that the solution that will REALLY help you survive and get stronger? If it’s seemed like every launch is a new Vegas gambling junket, you may not be far from the truth: 10% odds on bringing home a profit doesn’t sound very appealing. Still want to try it again?

Instead, why not try the rare “high-profit expertise” approach?  Let’s compare. In this valuable article I’ll cover:

  • Three Foundational Welding Automation Principles.
  • The Two Successful Paths to achieving high-performance welding automation.
  • Three classic reasons that welding integration suppliers can rarely deliver world-class “turnkey” welding automation results.
  • Five suggestions on how to pick an excellent welding automation designer/integrator and achieve great results.

You buy or create automation for two basic reasons:  to improve profit & quality, or because a customer demands it of you for those very reasons.  So why not be hugely successful at it?  Why not say goodbye to painful, lame launch results? Why not aspire to be so successful in manufacturing automation, that you trounce your competitors? Why shouldn’t one of your biggest challenges be developing strategies to hide how profitable your welding operations are from your nosy customers and envious competitors?Robot in welding integration

To be most successful in welding automation, the first two questions to ask are “what is our path to the best long-term profits, and what will it take to get us there?”  Because I have repeatedly achieved that in complex welding automation, and created cultures of effective Continuous Improvement, I have some solid answers for those questions. But to explain, I need to build the foundational principles – because they are invisible on the radar screen of most company management.

First, let’s realize a simple point: whatever the Pepsi machine says in the display window is how much it costs to get a bottle or can out of the machine.  If the goal is high-profitability, high-quality welding automation that gives you a competitive advantage, then there are some coins required to get there.  Don’t dare think you can save money by cutting critical “options” from the purchase order: that’s like watching a manager beating on the $1 Pepsi machine and demanding a drink for their customer when they only put in 75 cents. Don’t create such embarrassment… decide upfront to pay the price for success.

Instead of looking for ways to cheat the cost of success, which creates a high risk of project failure or tiny profits, look for low-cost opportunities to innovate and make the automation even more profitable than the proposal said it would be.

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Manufacturing Welding Companies can Grasp Rare Opportunities in Economic Upheaval

February 27, 2009

These are days in American and world history of unprecedented business pressures and explosive economic upheaval.  There are so many unknowns and variables that even the best “crystal balls” look cloudy.  Yet there remains some general agreement from those who analyze international manufacturing trends and competition, that in the end, companies who are best able to harness flexible high-performance automation will come out the winners and leaders in 21st century manufacturing.


Many companies manufacture welded assemblies, but precious few realize that even in product design, quoting and launch, their entire business is wrapped up in selling their expertise at manufacturing welded assemblies:  having never realized this, they have never sought and developed true expertise in high-profit welding – yet it’s their most complex core process.  Instead, over 90% of companies (and too many welding engineers) are content to merely enable the welding processes, oblivious to the potential to achieve 40-95% improvements in them.  The few competitors who grasp this potential can leverage an advantage that’s as great or greater than union vs union-free manufacturing.


For a moment, consider one picture of an ideal profitable company of the future:  working as a team who is sharply focused on applying formidable expertise in the mechanisms, controls, and processes of flexible welding automation, supporting a structure that enables Continuous Improvement and “closes the loop” of design, launch and manufacturing.

To do this well will require assembling a team of technical expertise that is fully capable of effective CI, DFM, and DFSS thinking in every core discipline.  The critical essentials that are perhaps most often overlooked are a smart controls engineer and a smart welding engineer (SWE).  And “closing the loop” requires leadership with the experience to shape a team and craft mechanisms that can move past the traditional hurdles that are so commonplace in industry.  Accomplishing this, bridging this chasm between design and production, has been my passion.  So I believe that it could be worth millions to your company to consider some of my perspectives. Read the rest of this entry »