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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