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Product category: Tool management systems
News Release from: WNT (UK) | Subject: Total Tool Management - tool vending machines
Edited by the Manufacturingtalk Editorial Team on 15 September 2004

Tool costs soaring? Time to use a
vending machine!

Use of tool vending machines - costing about GBP 100/month to install and operate - can save 20% on annual tool usage costs and provide control over tooling waste.

Often seen as the preserve of large companies, innovative use of tool vending machines is now creating opportunities for smaller companies to reap the rewards WNT (UK) is pioneering their introduction through its Total Tool Management philosophy

"In this age of minimising waste and environmentally friendly initiatives, UK manufacturing companies continue to pour money down the drain through failing to monitor and control their tooling inventories," says Tony Pennington, Managing Director of WNT (UK).

"The lack of control provided by the conventional stores and storeman is costing industry thousands of pounds in unaccounted stock.

This waste can be easily, and cost-effectively, eliminated allowing the resulting capital to be used more effectively within the business." Tool vending, which at its base level is no different from selecting a Mars bar from the machine in the canteen, is a cost-effective method of providing 24h access to tools, Software takes the place of the storeman and his index cards allowing tool usage to be monitored by technology.

"The common problem," says Pennington, "is that the storeman does not always understand the requirement, so when asked to issue ten inserts, he does so without too many questions being asked.

With tool vending, and its associated hardware and software, the system can, for example, be set to deliver a specific number of inserts for the required tool.

This means that stock can be kept to a minimum, eliminating 'private' stock on the shopfloor and drastically reducing costs." The other major advantages to the SME of tool vending are that costs are kept strictly under control, obsolete stock is, frankly, obsolete and the powerful reporting structure allows quick and easy monitoring of tool use for specific jobs on specific machines and by specific operators.

These reports can be customised to suit individual companies and can highlight tool usage by individuals, machines or particular components.

Costing for work can, therefore, be very closely monitored as far as tooling is concerned.

"At one recent installation the monitoring that we provide highlighted a high usage of inserts on one particular machine.

On closer inspection it was found that the spindle was misaligned causing excessive toolwear.

Without this feedback it may have gone unnoticed for months, if it had been detected at all," says Pennington.

The vending machines themselves are no different to those dispensing sweets and crisps, the clever technology, in the case of WNT, is in the electronic reader and electronic memory (SAM) card within the machine.

In order to dispense tools a unique key code must be entered, which identifies the individual operator.

Once this is done the operator can then scan a barcode located on the part drawing or job card and select the tool required.

Each transaction, with details of component, machine tool and operator, or whatever information the customers requires, is captured on the SAM card.

At a set period WNT 'dials' in to the machine and downloads the data, a stock replenishment report is created and the required tools are dispatched to the area sales engineer who re-stocks the machine.

In the case of serviceable tools such as drills, these can be returned to the system after regrinding by WNT and the software then instructs the machine to issue brand new items only when the stock of reground tools is exhausted.

In the past the perceived cost of these systems and the lack of understanding as to their benefits have prevented many SMEs from benefiting from the technology.

In implementing its Total Tool Management philosophy WNT (UK) took these concerns on board and has addressed them.

"We are happy to enter into an agreement to supply this solution free of charge to any company with a monthly spend on tooling in excess of GBP 2000.00, with a guaranteed cost saving of at least 10 per cent and if we do not achieve that saving we will present them with a cheque for the difference at the end of the year.

The customer simply cannot lose," confirms Pennington.

Even if you do not have that level of spend the system will cost a maximum of GBP 100 per month to install and operate, this includes the vending machine and barcode reader and software.

With no fixed term agreement, meaning that the unit can be returned at any time, the customer has very little to lose.

The only involvement is for the customer to agree the initial stock level, which is usually arrived at by studying existing purchasing history.

The risk of carrying this stock is also transferred from the customer to WNT as, in effect, it becomes a consignment stock, being invoiced only when it is used.

"The benefits of tool vending, even for the smallest sub-contractor are a powerful argument in its favour.

The reporting system provides management with a powerful tool that highlights trends in tool usage and identifies problem areas that may mean the difference between profit and loss on particular components.

We expect to have 50 vending machines in the field by the end of this year, the majority of which will be installed in relatively small companies," says Pennington.

* Vending machine saves 20% of tool cost - Bryken High Speed Turnings is an enthusiastic user of WNT (UK)'s Tool Service vending systems.

Not surprising when you are informed that the installation is saving, the Knowsley, Merseyside-based sub-contractor, 20 per cent of its GBP 300 000 annual spend on tooling.

"The four Tool Service vending machines supply 60 machine tools, and between them, these units contain 80 per cent, by value, of our tool stock.

We have seen tooling costs reduce by GBP 60 000 per year, allowing us to invest in other areas," says Andy Glachan, Factory Manager at Bryken. Request a free brochure from WNT (UK) ...

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