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MANUFACTURING TECHNOLOGY


Outsourcing heat treatment is a no-brainer


Debbie Mellor, MD of HT services specialist Keighley Laboratories


Outsourcing is now firmly entrenched in virtually every modern business, as a management tool for cutting costs, increasing efficiency and gaining access to specialist skills.


handling high volumes of limited product types, but otherwise outsourcing this function is a ‘no-brainer’ and here are the reasons why:


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• Cuts processing costs – Economies of scale make outsourced services more cost-effective than in-house facilities.


• Reduces in-house overheads –Including staffing costs, regulatory compliance, capital investment and on-going upgrades.


• Achieves greater flexibility – Changes in material or new product lines demand new knowledge and techniques.


• Accesses new technology – Outsourcing gives access to a broader range of treatments and updated methodology.


• Improves carbon footprint – Energy consumption is the biggest associated cost, so plant-wide carbon reduction is enabled.


• Enhances product quality – Contract heat treaters can advise on alternative methods that improve product performance.


• Eliminates compliance issues – Furnaces are potentially hazardous, so management rids itself of complex safety issues.


• Reduces capital investment – Upgrading and enhancements demand ongoing capital, that could be released for investment.


• Improves cost control – Outsourcing represents a known, fixed cost, controlled by the contract agreement.


10,000,000 gallons achievement award celebration


The Magni Group Inc. recently celebrated producing its 10 millionth gallon of coating product by inviting more than 400 global leaders and engineers to its coating manufacturing facility in Detroit, Michigan.


being sealed during the ceremony on stage. In addition to its automotive customers, Magni serves the


G 90


agricultural, construction, heavy truck, marine, military and off-highway markets worldwide with an excess of 100 different coating systems. The company’s engineered coatings are custom-designed to meet the performance criteria of customers’ fasteners, fuel and brake specifications and a range of other


Fastener + Fixing Magazine • Issue 69 May 2011


overnment officials, Detroit City councilwoman Jenkins, Oakland county deputy executive Bertolini and Michigan congressman Hansen Clarke, presented awards to the Berry family on-stage, with the 10,000,000th


paint can


metal products by resisting the corrosive effects of heat, humidity, etc. In support of the company’s global customers and more


than 100 applicators, Magni has 20 company-owned operations in North America, Japan, China, India, Europe and Brazil. To further support the Japanese and Indian markets, Magni will open new Technology Centres in both countries by 2012. “It took Magni 37 years to achieve 10,000,000 gallons, and


now, with our rapid growth, we are on course to produce one million gallons every year.”


t Keighley Labs we contend that heat treatment has all the right hallmarks for outsourcing. It is a non-core manufacturing process that carries massive overheads in equipment, manpower and energy consumption. Those with in-house facilities might benefit when


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