Case Study – Why the steel service centre refuses to include layout marking for add-on-parts AOP’s

WHY THE STEEL SERVICE CENTRE REFUSES TO INCLUDE LAYOUT MARKING FOR ADD-ON PARTS AOP’S

The steel service REFUSE to layout mark add-on-parts as they do not want to slow their machine down and increase the deliveries that will ensure they miss out on selling a higher tonnage of steel at faster delivers as their machines are too slow to layout marking at least six times slower than SMS beamlines.

Whilst the steel service is committed to investing in the incorrect beamlines that are not designed to layout mark efficiently they will continue to refuse to layout mark AOP’s for the fabricator.

A fitter/boilermaker can assemble (tack only) 50 add-on parts (AOP) per shift. Most fabricators agree in the estimate for the project allows for 5 minutes for the boilermaker to manually layout mark, 5 minutes for tack and assembly and 5 minutes for material handling, supervision and quality.

Each fitter is costing $75K per year @ $60/hour to layout mark AOP’s.

10 fitters cost $750K or sell price of $1.5M for layout marking at marked-up prices to the client.

The steel service centre invests in the slower 1 meter per minute CONTOUR marking that is so slow the workshop can’t live with such a reduced capacity and longer delivery.

The 6m/minute V-scoring is the better technology that the steel service centre refuses to acknowledge they are using the incorrect layout marking philosophy.

The moment the steel service centre invests in beamlines from SMS it will make it very difficult for any fabricator to justify an investment in a beamline from any supplier when they can receive what they require from that steel service centre that ordered the beamline from SMS. They have to pay for the capability and then have the skills to apply this capability & value to the market and the culture and motivation isn’t there.

It’s the problem for the fabricator who may not want to pay for layout marking & nor should they when it’s performed so slowly on a machine designed not to do it correctly.