Reprinted with permission from Modern Woodworking.
What small shops need to know before launching into automation
By Jeff Crissey
The many benefits of automated machinery have been spelled out in this and other trade publications in the woodworking industry. But for small shops considering automation for the first time, are they considering all the variables? There’s much more to switching to automation than you hear in a sales pitch or see at a trade show. Before you take flight, be sure you do your homework first.
A defining moment
Any prosperous company can trace the reasons for success back to one or two key decisions or events that spurred its growth. That defining moment for woodworking companies is often the decision to automate their production, for whatever reason.
“We knew we didn’t have any choice but to automate because our customers told us what business they had coming up,” says Stewart Belet, owner of Belet’s Millwork, Jacksonville, Fla. “If we wanted to keep their business, we were going to have to change our production strategy.”
LT Design, a residential cabinetmaker in San Diego, was seeking better quality parts.
“At the time we were using traditional machinery, and we were outsourcing cabinets for larger projects to another cabinet shop that was automated,” says Michael Lowry, owner. “Seeing how they manufactured cabinets and the quality of the finished product, we were amazed. When we would install the cabinets they made, everything was perfect – doors fit, drawers closed perfectly. That led us to ask ourselves, ‘What is it going to take for us to get like this?’”
Steve Schoenacker, owner of CCW, a successful commercial casework company based in Scottsville, N.Y., had a vision for his business from the start.
“I started my business when I was 20 years old, and I bought my first automated machinery when I was 23,” he says. “I knew from day one that I didn’t want to be a standard cabinet shop. It was a big decision, but I had it set in my mind that if I wanted to produce larger jobs as a small shop, I would have to rely on automation instead of a shop full of employees. I wanted talented people with automation to support them. The idea is to work smarter, not harder.”
Other companies opt for automation to remove the guesswork and problems that a shop full of employees can present.
“We seemed to handle a part 10 times before a product was ever assembled,” says David Muller, co-owner of Lone Star Millwork, Houston. “We were looking to decrease labor and not deal with the headache that it presents.”
At the right time, for the right reasons
The decision process is the biggest factor in determining a company’s level of success with incorporating automation and its inherent learning curve. Where many companies fail, say machinery experts, is investing for the wrong reasons.
“One mistake that I often see when companies first incorporate automation into the shop is that they are getting the machine for a particular job that is due almost immediately,” says David Brooks, product manager for entry-level CNC machining centers, SCM Group USA. “They are either told or they disregard that there is a learning curve in operating the machine properly. People don’t want to admit it, but it will take some time and many mistakes before the operator becomes proficient in using the machine.”
“There is a huge risk associated with putting the decision to automate off until it becomes a critical point,” says Michael Dupont, CNC product manager for Altendorf America. “Oftentimes they have a timeline for completing a job, and the job they won is the one they need to justify the purchase of the machine. What that actually does is increase the stress load and extends the ramp-up period because now they no longer have the appropriate amount of time to train people and integrate the new process. If they had looked at their schedule and planned the integration in advance, they would find they would have the discipline to do the required training and get the results they want.”
“Fortunately, my machinery vendor told me to cut parts for as many jobs as possible with my vertical panel saw before I shut it down to install the automated machinery,” says Walter Hess, owner of Hess Woodworking, a one-man shop in Burbank, Calif. “I had about four carts worth of pre-cut parts. That way, I still had parts to assemble and install during the installation and ramp-up time for the automated machinery.”
In other cases, shop owners view automation as the inevitable next step for their business, and predicate their decision to purchase automated machinery for the wrong reasons.
“If you’ve decided on purchasing a certain type of automated machinery, look for what is the simplest to learn, simplest to acquire, simplest to teach, simplest to use, repair and maintain, ,” says Spencer Dick, president of TigerStop. “But shops need to understand why they are being successful and make sure whatever automated machinery they buy will reinforce that success. They need to establish their core competencies that allow them to win bids and reinforce that. Otherwise, they are just throwing more overhead onto their business.”
“Just because you go out and get a CNC router doesn’t mean you’re going to double your production,” warns Schoenacker. “You have to have the work to support that cost and do the sales and marketing required to support that workload.”
Don’t let price alone determine your decision whether or not to automate production. Ask yourself, ‘What can this machine do for me? What expenses can it replace in my current operation?
“Once the buyer understands that this is an investment in the future of his business, he will see the potential benefits far outweigh the initial costs associated with the machine,” says Brooks.
“For the small shop, the best thing they can do is to identify their business goals,” says Hix. “Then take a look at what tools, processes and applications will allow them to get to that point. Those are crucial decisions because too often people get confused by the ‘bigger, faster, better’ mentality, when in essence they should focus on modifying their process and integrating a full solution. Whether you’re looking at a $40,000 machine or a $180,000 total solution, it depends on your business goals. If the goal is to make more money, they should approach it from that perspective. If the goal is to reduce labor costs, they need to determine what costs they will be able to remove from that operation with a new machine.”
Uncovering the true cost of automation
Another mistake shop owners make is underestimating the true cost of adding automated machinery to their production. In addition to the sizable investment in the machine itself, automated machinery often requires new tooling, adequate dust collection, three-phase electrical power, high-speed Internet service for remote diagnostics, parts, training, service and more.
Perhaps the biggest expense in switching to automation occurs in the weeks and months following the machine and software installation. The growing pains during this time result in increased stress, frustration and decreased revenues until the production is at a point which.
“There are those who think that they’ll incorporate all of this technology in one day and that cash will be flowing in the next,” says Dupont. “There are very few cases where that is realistic. Most often, shop owners need to get used to the technology and the effects it will have on their business. Often there is a ramp-up period that costs a little bit of time.”
“I was calling my machine vendor daily to figure out what the machine would be able to do for me,” recalls Hess. “‘What happens when I get rid of my old machinery and I have to implement the new stuff?’ ‘What’s going to happen during that downtime?’ Some questions can’t be answered until the machine is up and running and actually cutting parts. You have to manipulate hole boring, dadoing, hinge boring, etc., to the way you build cabinets. It took two months to dial it in perfect before I was pumping out kitchens again.”
How much time depends on the technical skills of the dedication of shop management and the amount of forethought and planning associated with the move to automation.
“It took some time to get things in the right place and get them all networked together correctly,” says Schoenacker. “I’m still working on the new software. It took at least a month if not two before all the parts were running smoothly. It’s unrealistic to expect otherwise.”
Maintenance costs are another consideration when determining the true cost of automated machinery. Don’t let the sticker price decide which machine you’ll buy – look at the service and support program from the supplier and its reputation.
“You have to spend a few hours each week performing preventive maintenance and making sure the machine is clean and greased,” says Lowry. “I just had a machinery representative come in and do a tune-up and cleaning of my automated machinery, and I’ll probably do that every year. It was a $1,200 investment on a $90,000 machine and it’s worth it because I can’t afford for it to break down. For repair and part replacement, you have to rely on who you purchased your machinery from. What happens if it breaks? Who’s going to fix it and when? You may have to pay top dollar for a machine and service, but it’s much better than having your shop sit idle for several days.”
Perhaps the highest ticket item next to the machine itself is the software that runs it. Choosing the right software package for you business is just as important as the decision on which automated machinery to purchase.
“I don’t care whose software you use, you need to be trained on it, and you need to devote the time to set it up because none of them are plug-and-play right out of the box,” says Schoenacker. “Interfacing the machines and making sure they are coded correctly is a big undertaking. If you’re not 100-percent devoted to doing it, it could be a major disappointment.”
Software packages should be viewed as a tool. Some are better suited to your needs than others, depending on the applications they are designed for. But with all the choices available, how do you choose?
“Choose a package that best works for your application,” says Brooks. “Research the software just like you would the machine for which you are buying it. Essentially the machine is just one big printer for the software that you purchase.”
Although the initial investment in software can quickly reach tens of thousands of dollars, you need to be willing to re-visit your software options in a few years. As technology changes, so do the capabilities of the software programs. Being flexible to leverage new technologies can quickly outweigh the initial cost of the software.
Been there, done that
Woodworkers share their experience and advice to small companies considering automation for the first time:
“Learn your software before you invest any money in automated machinery. Work with the software, get trained on using it, and use it in your business for several months first.” – David Muller, Lone Star Millwork
“Be patient. Make sure you look at your software purchase carefully. Automated machines are nice, but they’re only as good as the software you have to run them. The software has to be oriented around what you produce.” – Steve Schoenacker, CCW
“Make sure you check out the equipment and software at someone else’s cabinet shop. Don’t buy something simply because a salesman tells you to or because you saw it working on display somewhere.” – Michael Lowry, LT Design
“You have to be comfortable with the vendor and manufacturer you’re dealing with. Equip yourself with what you can afford.” – Stewart Belet, Belet’s Millwork
“Do your research on what you’re purchasing because there are a lot of machines out there.” – Walter Hess, Hess Woodworking
Reprinted with permission from Modern Woodworking.
