Outsourcing maintenance opens up plant availability for Tier 1 auto supplier

The decision for Griffin, Ga.-based Nacom Corp., an electronic assembly supplier to automotive OEMs, to relocate to Mexico wasn't an easy one. The most pressing priority leading up to the move was building sufficient stock inventory to meet customers' requirements during the transition—even though the plant was closing.

05/01/2008


The decision for Griffin, Ga.-based Nacom Corp. , an electronic assembly supplier to automotive OEMs, to relocate to Mexico wasn't an easy one. The most pressing priority leading up to the move was building sufficient stock inventory to meet customers' requirements during the transition—even though the plant was closing.

“We supply the Big Three and other automakers like Toyota and Nissan, and we knew we had to build several months of bank stock before moving the facility so it wouldn't affect our customers' JIT production, says Tom Clark, Nacom's director of operations and engineering. “We needed to increase production to meet that goal, which [puts more] emphasis on preventive maintenance and machine uptime. At the same time, we were prepared for 50 percent to 60 percent of our maintenance associates to leave the company because they knew the plant was closing.”

That's why Nacom decided to outsource maintenance to Advanced Technology Services (ATS) , which supplies managed production equipment maintenance, industrial parts repair, and IT solutions.

ATS, already known for its staff of 2,000 people, is making a name for itself for the same reasons companies in the IT outsourcing business succeed, says Houghton Leroy, research director for enterprise asset management with Dedham, Mass.-based ARC Advisory Group . Namely, there's growing demand for such services.

“First, the skilled maintenance labor pool is rapidly shrinking as more employees retire,” says Leroy. “Second, the complexity of assets has changed, and it costs even more to maintain them. Finally, the cost of spare parts is rising, and many companies don't want the cost of carrying spare parts anyway. These are all compelling reasons to outsource maintenance to a company like ATS.”

In the case of Nacom, the decision to outsource maintenance proved to be sound.

“We are a lean company, so we don't carry buffer inventory. That means we need to focus on production and let ATS do what they do best: maintenance to ensure production uptime,” Clark says. “ROI has been significant in a short time. We've seen a 45-percent improvement in plant availability, and a 30-percent reduction in maintenance overtime.” Clark adds that ATS took over Nacom's maintenance staff, so no jobs were actually lost.





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Robotic safety, collaboration, standards; DCS migration tips; IT/OT convergence; 2017 Control Engineering Salary and Career Survey
Integrated mobility; Artificial intelligence; Predictive motion control; Sensors and control system inputs; Asset Management; Cybersecurity
Big Data and IIoT value; Monitoring Big Data; Robotics safety standards and programming; Learning about PID
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This article collection contains several articles on how automation and controls are helping human-machine interface (HMI) hardware and software advance.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me