Articles
Line Transfer: An Outsourcing Alternative
(PRWEB) April 18, 2007 -- For companies that are making the shift to concentrate on core competencies, lower costs, and to free-up resources, Flinchbaugh Engineering, Inc. offers a unique outsourcing concept known as Line Transfer.
Flinchbaugh Engineering is a pioneer in Line Transfer. The concept is really quite simple; a company's machine tools, technology and overhead are transferred to a second-party facility to produce the parts. This solution recognizes that the company's existing manufacturing line has value: capital, technological and consistency. Because it is the company's machinery and technology, there is no need to develop or redevelop a process. They know what to expect when the parts arrive, providing continuity for the rest of the production or assembly.
Line transfer is a low risk solution. We use the same tooling, CNC technology and processes as you, so you're getting the same product produced in your facility "Line transfer is a low risk solution. We use the same tooling, CNC technology and processes as you, so you're getting the same product produced in your facility," said Rob Campbell, Vice-president, Business Development for Flinchbaugh Engineering, Inc. in York, PA.
Flinchbaugh's first line transfer started in 1986 when CAT transferred 14 machines and 120 part numbers to their facility. Since then, they have been a partner in 13 other line transfers with the likes of Siemens, Mack/Volvo and SKF.
A successful line transfer can produce a 15-30% savings in production costs. The savings is realized from a number of factors such as no upfront capital costs, less overhead, no machinery maintenance, and a greatly reduced learning curve. Flinchbaugh Engineering also offers an option to optimize the machines' capacity by operating 24/7.
According to Flinchbaugh Engineering, the best candidates for this type of manufacturing line transfer are those companies which have aging equipment and capital constraints; have excess capacity on the line; have inflexible work rules and high labor costs; don't or can't implement lean tools; and don't see manufacturing as a core competency. The best product candidates include those which are difficult to produce; larger parts with lower volumes; those forecast to have reduced sales; complex or expensive parts with higher failure risks; and those that are difficult to ship long distances.
Once a company and product is determined to be a candidate, Flinchbaugh Engineering performs a rigorous due diligence on the feasibility of the line transfer. Every aspect of the manufacturing process is scrutinized and brought to the candidate's attention, including any hidden costs as well as a very close look to see that the manufactured part matches the drawings. They recognize that occasionally design modifications have been made during production but the documentation hasn't caught up, which can result in unnecessary expense in the transfer.
Because Flinchbaugh Engineering is a relatively small organization with the benefit of leaders from big business, they are able to offer agility in production and negotiation. Each transfer is unique, with special circumstances that the transfer team works to identify before the move is started. The logistics of the move, the condition of the machinery, and even a roll back plan is negotiated upfront and if it isn't a good fit for either party, they will tell you. Most negotiations last 8 weeks and production generally begins 12 weeks from time of signing, though some transfers can be running within days.
Flinchbaugh engineers plan and execute the physical transfer from removing the first bolt at your facility to installing the last nut in their facility.
Once the line transfer has been established and is running in the new facility, engineers question the questionable and will continue to refine and define more effective processes. Since Flinchbaugh has assumed this function, your engineers are free to focus on new projects.
A line transfer also relieves the equipment burden. Depreciation versus liquidation of the machinery is part of the negotiation. Whether the machinery remains the property of the company or is transferred, Flinchbaugh assumes the responsibility for its maintenance. They employ the Total Preventive Maintenance (TPM) program resulting in equipment longevity and efficient production.
"We are upfront with you. We want to be an extension of your company -- a partner, not a subcontractor," said Mike Lehman, President and CEO of Flinchbaugh Engineering.
In business since 1978, Flinchbaugh Engineering, Inc. has grown to include complete engineering and machining of component parts for diverse industries. Line transfers are a key component of the company's growth.
For more information about Flinchbaugh, an ESOP company, visit www.flinchbaugh-usa.com.
Note: Additional photography and interviews available.
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Line transfer is a low risk solution. We use the same tooling, CNC technology and processes as you, so you're getting the same product produced in your facility "Line transfer is a low risk solution. We use the same tooling, CNC technology and processes as you, so you're getting the same product produced in your facility," said Rob Campbell, Vice-president, Business Development for Flinchbaugh Engineering, Inc. in York, PA.
Flinchbaugh's first line transfer started in 1986 when CAT transferred 14 machines and 120 part numbers to their facility. Since then, they have been a partner in 13 other line transfers with the likes of Siemens, Mack/Volvo and SKF.
A successful line transfer can produce a 15-30% savings in production costs. The savings is realized from a number of factors such as no upfront capital costs, less overhead, no machinery maintenance, and a greatly reduced learning curve. Flinchbaugh Engineering also offers an option to optimize the machines' capacity by operating 24/7.
According to Flinchbaugh Engineering, the best candidates for this type of manufacturing line transfer are those companies which have aging equipment and capital constraints; have excess capacity on the line; have inflexible work rules and high labor costs; don't or can't implement lean tools; and don't see manufacturing as a core competency. The best product candidates include those which are difficult to produce; larger parts with lower volumes; those forecast to have reduced sales; complex or expensive parts with higher failure risks; and those that are difficult to ship long distances.
Once a company and product is determined to be a candidate, Flinchbaugh Engineering performs a rigorous due diligence on the feasibility of the line transfer. Every aspect of the manufacturing process is scrutinized and brought to the candidate's attention, including any hidden costs as well as a very close look to see that the manufactured part matches the drawings. They recognize that occasionally design modifications have been made during production but the documentation hasn't caught up, which can result in unnecessary expense in the transfer.
Because Flinchbaugh Engineering is a relatively small organization with the benefit of leaders from big business, they are able to offer agility in production and negotiation. Each transfer is unique, with special circumstances that the transfer team works to identify before the move is started. The logistics of the move, the condition of the machinery, and even a roll back plan is negotiated upfront and if it isn't a good fit for either party, they will tell you. Most negotiations last 8 weeks and production generally begins 12 weeks from time of signing, though some transfers can be running within days.
Flinchbaugh engineers plan and execute the physical transfer from removing the first bolt at your facility to installing the last nut in their facility.
Once the line transfer has been established and is running in the new facility, engineers question the questionable and will continue to refine and define more effective processes. Since Flinchbaugh has assumed this function, your engineers are free to focus on new projects.
A line transfer also relieves the equipment burden. Depreciation versus liquidation of the machinery is part of the negotiation. Whether the machinery remains the property of the company or is transferred, Flinchbaugh assumes the responsibility for its maintenance. They employ the Total Preventive Maintenance (TPM) program resulting in equipment longevity and efficient production.
"We are upfront with you. We want to be an extension of your company -- a partner, not a subcontractor," said Mike Lehman, President and CEO of Flinchbaugh Engineering.
In business since 1978, Flinchbaugh Engineering, Inc. has grown to include complete engineering and machining of component parts for diverse industries. Line transfers are a key component of the company's growth.
For more information about Flinchbaugh, an ESOP company, visit www.flinchbaugh-usa.com.
Note: Additional photography and interviews available.
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