Extra cool parts machined and stocked too

Some subcontractors are extending the service they offer to manufacturers by not only producing components but also stocking them free of charge for subsequent delivery when needed, just-in-time.

Some subcontractors are extending the service they offer to manufacturers by not only producing components but also stocking them free of charge for subsequent delivery when needed, just-in-time.

One supplier that specialises in winning and holding on to business in this way is contract machinist, Holifields, Abingdon.

The company cites its work for Didcot-based Thames Cryogenics (TCL), a leading UK manufacturer of liquid nitrogen transfer, storage and control equipment, as a good example of how its consignment stocking service works in practice.

TCL's production director, Mark Evans, commented, "In 1995 we started working with a father-and-son subcontract business that was later acquired by Holifields, which further developed the close business relationship that had been established with us.

"Around three quarters of the parts, kits and sub-assemblies they supply to us are held on consignment at their premises in Abingdon after they have been machined.

TCL shop floor staff visually monitor component levels in our factory and periodically call off further quantities to ensure that we do not run out.

There are occasions when we run short, but Holifields can deliver most regularly used items the same day.

"The big advantage to TCL is that we can run a near-perfect, just-in-time method of manufacture without having to tie up money carrying large stock levels and without the expense of employing a person to manage them." There are currently some 500 live part numbers at TCL, materials being predominantly stainless steel and brass.

Examples are a safety valve kit and a nut nipple assembly, both made in three parts; and a stainless steel coupling made from 41.28 mm diameter tube of 1.5mm wall thickness turned down to 0.5mm.

The tube has profiled ribs to allow for expansion and contraction at temperatures approaching minus 200degC.

Said Holifields' sales manager, Roy Marshall, "We manufacture in batches of 10s and 100s for TCL, which issues us with a rolling order number for each part.

If historically they have called off 50 per month of a particular item, which we can tell from the order book, we will typically machine three months' supply when our stocks fall below a pre-agreed threshold.

"It costs us money to do this, but some of the expense is offset by the economy of machining larger batches.

However, the most important consideration is keeping the customer happy.

Many subcontractors can produce high precision machined parts, so consignment stocking gives us an edge." TCL's utilisation of parts is unpredictable.

Systems are made to order for such prestigious clients as BOC, BAE Systems, Ford and the Blood Transfusion Service, which demand project turnaround of three to four weeks from placement of order.

One week of this is allocated to an industry-specific 'pump and bake' process completed off site, so in reality the lead time is two to three weeks.

Concluded Evans, "Most subcontractors cannot deliver quickly enough to meet our needs, even in quiet times, so if they are busy there is no chance.

Having buffer stocks is the only way we can be sure of fulfilling customer orders on time and with Holifields there is no cost to us until the parts are delivered.

"Moreover, they have a fine manufacturing set-up with modern production equipment and a first class quality assurance team.

We can rely absolutely on components being within our specified tolerances, resulting in further savings as we do not need our own inspection staff.".

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