Creating a machine shop franchise template: this contract shop applies basic franchising concepts to maximize efficiency in all aspects of its business. Its intent is not to sow multiple franchise locations, but rather to make its sole facility perform as predictably and profitably as possible

Modern Machine Shop, Feb, 2005 by Derek Korn

It's no mystery how fast food chains can build, equip, staff and then open new locations for business in the blink of an eye. These turnkey business systems are based on a proven, predictable franchise template.

A successful franchise template requires utmost efficiency of equipment, processes and management to enable quick and easy replication at another location. In addition, standard practices must be established, and a substantial knowledge base must be made available to the entire workforce. This will allow workers of nearly any skill level not only to learn new job duties in short order, but also carry out those responsibilities without significant management handholding. This concept is detailed in a book written by Michael Gerber called "The E-Myth Revisited" (in this case, the "E" stands for entrepreneurial, not electronic).

There is considerable value in looking at how this might be applied to the business of producing machined parts, even if a shop has no intention of opening another location. The idea is to get that single location as close to "fast food" speed and efficiency levels as possible to best meet customers' JIT and quick delivery needs.

This concept is successfully being applied at Pro CNC in scenic Bellingham, Washington. Pro CNC's management and shop workers continuously seek new ways to increase shop efficiency, as any company would in developing its franchise template. Pro CNC's comprehensive shop management system--an open, Web-based system of its own design--makes readily available all information that a worker may need to set up a job, run a machine or inspect parts. It also tracks every aspect of the manufacturing process from purchase order to part shipment in real time.

Though Pro CNC certainly isn't to the point of having a parts "drive-thru" on the side of its building, the shop has thrived by striving to reach such a level of part-making proficiency.

Efficiency In Motion

Before starting their business, the founders of Pro CNC studied together at Western Washington University, where they joined the school's Vehicle Research Institute (VRI). According to Paul Van Metre, Pro CNC's vice president, they not only designed and built many award-winning Formula SAE-style racecars at VRI, but they also learned a great deal about machine tools and machining processes.

Racecar designs are inherently efficient. Pro CNC applied the concept of design efficiency to its machine shop, which melds lean manufacturing concepts such as 5S (workplace organization) and kaizen (continuous improvement), as well as a variety of setup reduction techniques. A shop tour with Mr. Van Metre revealed numerous examples of how Pro CNC has integrated both standardization and design efficiency into its manufacturing processes.

* Machine layout--When determining the layout of its new 10,000-square-foot facility a few years back, Pro CNC worked with a lean manufacturing consultant to help devise a machine layout that would best match its desire for quick throughput of small part lots. Because many of the parts that the shop produces for its aerospace, medical and sporting goods customers flow between two or more machines, the machine layout needed to allow fluid, efficient worker motion. Rather than establishing cells, the company arranged its machines in rows, and spaced the machines less than 10 feet apart. This minimizes operator walking distance for jobs that might flow between any combination of machines, but it doesn't make the shop floor so cramped that workers are bumping into each other. In order to power auxiliary equipment such as a vacuum table, 120-, 220- and 480-volt electrical outlets are provided at every machine.

* Machine workstations--Small, well-organized worktables at each machine minimize operator movement between tasks and eliminate time-wasting searches for commonly used tools. Limited table surface area encourages the use of quick-access storage devices, including shadow boards, magnetic plates to secure metal tools, and clearly labeled trays and bins. Machine-specific colored tape is attached to some tools to make sure they remain at the proper machine workstation. Each workstation has a computer, keyboard and flat screen monitor located near the machine control for easy access to the shop management system.

* Carts--Pro CNC uses a number of carts to facilitate part and equipment movement throughout the shop. For every new job, a job cart is stocked according to a preprocessing checklist, which lists everything an operator will need to set up and run that particular job. Items on the job cart might include the job folder, material cut to size, preset tools loaded in a caddy, vises or fixtures, buckets of part cleaner, measurement devices and so on. A finished parts cart is positioned at each machine to allow easy part transfer to another machine, the shipping department, or deburring or assembly stations.

Two dedicated inspection carts topped with granite plates enable operators to perform in-process or first-article inspection at any machine. Two "plug-and-play" vacuum table carts contain everything needed to quickly install a vacuum table into a machine, including vacuum pump, vacuum gages, a manifold with quick-release vacuum line fittings and a canister for collecting coolant that might be pulled into the vacuum system.