When does it make “cents” to stop outsourcing and build an in-house automated finishing system?

Good question. It starts with knowing how much you currently spend and how much throughput volume you may need in the future. How much do you spend now on outsourcing your part finishing?

Many manufacturers outsource some to all of their finishing, be it powder coating or liquid finishing,  because they want to leave it up to “experts,” don’t have space for a system, and desire to concentrate on what they do best, like fabricating and assembling final products. They could also have unusual or rarely needed parts that simply cannot be done on their in-house systems.

Let’s just assume you are outsourcing your finishing because your need for it started out small but has grown over time. At this point, you mainly do it because, “It’s what we’ve always done.” Maybe it’s time to start working on a business case that would let you know if you’re ready for your own system!

Let’s also throw some hypothetical numbers at this issue.

Imagine your outsourcing of finishing has grown over the years to about $1 million per year with local (or maybe distant) custom-coaters. How much money could an automated, in-house system save you per year that would justify the relatively large capital expenditure?

As a starting place, would it make sense that you would at least save the gross profit margin your custom-coaters are currently collecting from you? (For this article, we’ll ignore the fact that bringing finishing in-house is also likely to decrease total WIP, greatly decrease re-work, improve turn times, and save on transportation costs, too.)

Obviously, that gross margin varies depending on product, unique challenges, etc., but let’s sling a guess at it.

IntelliFinishing’s parent company (Kasa) operated a relatively large fabrication and coating company called KasaFab for many years before selling it to a local manufacturer.

Our former VP of that company still works for Kasa, and he said, “On small-quantity powder work, we would charge a pretty high margin of 60 to 65%. On large-quantity work, we would shoot for 50 to 55%.”

Now, maybe your custom coater doesn’t get as much margin as our former KasaFab operation. This might be because there are more competitors in your market. After all, KasaFab (now Vortex Fab) is the only large fabricator for at least 50 miles or more in any direction. It is in the middle of Kansas!

Meanwhile, I’ve also heard it said by longtime experts in the field that you should be able to save at least 20 to 40% by bringing coating in-house.

So, let’s start conservatively and imagine a savings of only 25% to represent the gross margin your custom coater is charging. This means a new automated system should save you at least $250,000 per year, assuming the previous assumption of $1 million per year being outsourced.

Depending on the types of product you need coated, even a relatively traditional monorail could be paid for in about two to four years for this amount of savings. After that, it would be savings that go to your bottom-line profits. Most simple monorail systems likely cost between $500,000 and $2,000,000, but this is entirely dependent on process requirements for pre-finish steps such as shot-blasting, washing, and dry-off ovens, as well as for the type of booths and cure ovens and specific conveyor requirements for the part dimensions and weight considerations.

However, for an IntelliFinishing System, it’s a little more complicated. Our systems are much more flexible than monorail systems in that we can accommodate processes for a much wider variation of parts. IntelliFinishing systems use a friction tube conveyor that allows for control of every section of track, so every carrier can, in effect, be given a different process recipe (video: www.intellifinishing.com/part-recipes).

We also have a sophisticated software control system to integrate each independently operated section of track to keep items moving as per the recipe, yet also keep carriers from bumping into each other. Consequently, the conveyor and controls are somewhat more expensive than monorail systems, but often highly competitive with power & free chain-based systems.

Therefore, most IntelliFinishing systems installed have cost between $1,500,000 and $10,000,000, with an average of about $3,000,000.

But, here’s the kicker! An IntelliFinishing System is usually way less expensive to operate. Here’s a link to an article we recently published that explains why this is the case.

Since any custom-coater you are likely to use is unlikely to have an IntelliFinishing System, any manufacturer who installs an IntelliFinishing system is very likely to save much more than just the gross margin.

If the IntelliFinishing technology makes sense for your company based on the parts needing finished or your volume, then the “$1 million outsourcer” example we have suggested could save up to 60% compared to outsourcing. Thus, $600,000 per year saved could finance a much more economical IntelliFinishing system very quickly!

Of course, there may be other considerations. Do you have space for a system? If so, great! If you’re unsure, talk to us. Our system often saves 25 to 40% in footprint depending on the nature of your parts and processes.  If you need to build or lease a new space, you will obviously need to include those costs in your calculations, too.

Ultimately, this is just a first-cut calculation to begin the process of considering a new finishing system. If your calculus indicates you might benefit from a system, the next step is to start finding a vendor to draft up a layout and determine a budgetary or formal quote.

But, before you decide to go with any one system, I’d also like to suggest you figure out your likely actual costs of having and running a new finishing system. You should do this from the ground up. The costs would include system and building utilities, building lease or purchase costs, depreciation considerations, manpower to operate the system, possible restructuring of existing processes and flow, and, of course, paint or powder costs, maintenance, etc.

If you are ready to consider bringing finishing in-house and are wondering if an IntelliFinishing system might be a good fit for you, check out our website and watch a few of our videos, then contact us. We will be happy to help you not only figure out a potential system, but also to help you with your cost justifications.

Automated finishing systems are tremendous drivers of efficiency. However, there are often areas of improvement. Let’s explore how some traditional designs fall short in this area and what you can do to double your automated system’s throughput capacity.

Chained to Design

Traditional, chain-driven automated powder finishing systems are usually welded together and set to function at a certain line speed. Because of this, it’s difficult to expand the throughput and increase production. You could try to increase the line speed, but then you’d be increasing the speed of all the system processes. In most cases, that means disaster.

This approach would also bungle the final cure step, which is usually designed for a specific length of travel time through a certain range of the oven. Trying to speed that up would result in the entire process being incorrectly completed.

There are more optimal solutions.

Monorails Limit Expansion

Because most automated powder finishing systems are monorails, it’s impossible to just bolt on more oven capacity.

Similarly, one can’t simply attach a new wash loop or additional booths to a monorail. If you want to change the functionality or design and double the throughput, that typically means having to build a whole new system.

Again, it’s easy to understand why this isn’t the simplest or most cost-effective approach.

The Costs of Power and Free Systems

Power and free automated powder finishing systems are more flexible in their design. Additional system loops and spurs can be added, but there are still associated difficulties and costs.

Mating new P&F track can be significantly challenging and often leads to major downtime events. If the system is down, it’s obviously not producing anything, which leads to extra costs.

You guessed it – there’s a better way.

Enter IntelliFinishing’s Automated Finishing Systems

An IntelliFinishing automated finishing system is the perfect solution for having a modular, modifiable finishing system that can double its throughput.

The systems are built with more of an “erector set” design in mind. During the initial building of the finishing system, expansion points can be introduced to compensate for future growth in throughput needs.

Possible bottlenecks (usually the oven capacity) can be identified and assembled with track switches for the eventual addition of other loops in the system. This way, when there’s a greater need for a certain process, it’s easy to build out the new spur, add the additional process and tie the system back together with minimal downtime and relatively low cost.

Double Your Throughput with IntelliFinishing Automated Finishing Systems

These innovations are what make an IntelliFinishing system leaner, more cost effective in the long run, more cost effective to operate each day, and better able to meet many of the changes and innovations as systems -class company with unparalleled expertise in the powder-finishing industry. As your company and your needs expand, our systems will grow alongside you.

You can waste money on purchasing new systems every time you need more throughput, or you can upgrade to an IntelliFinishing system and work with our experts to find the best solution for your unique needs and future-proof yourself in the process.

To learn more, visit www.intellifinishing.com.

In the world of planning, there’s always the chance that something goes awry. These best-laid plans hit snags much of the time because of unforeseen challenges, especially during a pandemic. IntelliFinishing recognizes building automated finishing systems is a complex process—one with lots of specifications, including process equipment, paint application, conveyors, controls, the footprint, utility requirements and more.

While these projects have lots of moving pieces, we do everything within our power to meet our client’s expected operational date for beneficial use. We want every organization considering an IntelliFinishing system to understand our processes and commitment to their desired completion date as well as the most common reasons for delays.

Experience Matters

We have a wealth of experience on our side in installing automated finishing systems big and small. One of our largest systems contains a mile of conveyorized track and our smallest – just a few hundred feet! No matter the size of the job, our customers receive the same care when it comes to timelines. At IntelliFinishing, the priority to Meet Deadlines is only secondary to Safety and Quality in our stated and adhered to company values.

We’re proud to say that we’ve never had a customer unhappy with our efforts to complete a project within the agreed-upon timeframe. However, that doesn’t mean that all the planning and work don’t encounter unexpected delays. Below are some real examples, however we have not cited actual projects names or involved vendors…because we love our customers and suppliers!

What Are the Biggest Causes of Delays?

Our team tracks what causes delays or problems on every project so that we can be better prepared for the next job. 2020 has, of course, been a complete curveball! The strain of the pandemic on supply chains, safe workspaces, losing workers for a time due to infection and more have certainly had an impact. Beyond the challenges of COVID-19, here are the most common causes of delay for projects we’ve installed.

Weather

It’s unpredictable and outside of anyone’s control. Weather doesn’t usually slow down the building of a system, rather it often affects the building site.

On a recent project installed near Atlanta, the area received substantial rainstorms for weeks, creating a massive mud pit in the area that was the build spot. Since this was a new addition to an existing building, a slab was necessary to support the walls. The rain delayed the building contractor for weeks, preventing the delivery of the system equipment. In this case, the customer had been outsourcing their finishing needs prior to deciding to install an IntelliFinishing system, and we were able to complete the installation once the addition was available in a relatively short timeframe.

Another unexpected weather-related example includes an installation in an existing building where the customer experienced a roof leak around the ventilation of and above their liquid booths. This leak was causing problems with operating the system at regular capacity and meant the system could not be officially approved as per the project contract. We could not properly repair the roof ventilation until the rain stopped. However, the customer was effectively using the system, working around the leak problem, but we didn’t receive final approval on the project until the repair was completed – a few weeks after “the unexpected monsoon season”.

Equipment Purchases from Vendors Not on the Main System Contract

Companies often purchase items related to the finishing system apart from the main system contract. Examples include shot blasts, booths, application equipment, robotics, etc.

In a recent installation, we learned about two months into an eight-month project that vendors supplying an inline shot blast as well as those supplying system robotics, would be unable to meet their delivery deadlines and thus it delayed our installation schedule. To be absolutely fair, this situation arose, in no small part, because the procurement and negotiation process between the client and these vendors went longer than expected – thus delaying their delivery turntime schedules. Further exasperating these same delays were COVID-related supply chain slowdowns from overseas and other areas.

With these extenuating circumstances, our customer graciously removed the liquid damages clause that were a part of our contract with them. Meanwhile, we were able to meet our equipment arrival timelines and find workarounds for the delays of the other vendors. The system was up and running only a month or two later than originally expected. Ultimately, the client is extremely happy with the installation process and with their system.

Local Licenses and Utilities 

Ensuring a site has the appropriate licenses and utilities is integral to the installation. These aspects of an installation are usually the responsibility of the client, but since we act as general contractor for the system, we are often very involved in helping clients with these outside agencies. However, a few years ago, we worked with a client serving as their own general contractor. Unfortunately, they made an error in ordering the appropriate capacity of the natural gas line. It simply wouldn’t meet the requirements of the system equipment, resulting in a several-month delay. Fortunately, the system was able to operate its multiple cure ovens at half capacity after installation and ultimately, they obtained the proper sized gas line to feed all of their ovens.

Another project also related to delays due to utilities: In this case, the whole project was delayed due to the electrical company not installing their switchgear equipment when requested. As was their responsibility, the client requested a specific date for installation and many other tasks in the project were contingent on hitting that date. Utility companies, however, don’t always meet their requested install dates – and in this case it caused a cascade of task rescheduling.

Building Site Construction Delays

Construction, whether a new build or a remodel, is infamous for missing deadlines. A million things can go wrong with materials, labor, inspections, equipment and more. While we all know that construction timelines rarely meet expectations, the delays impact the system project, nonetheless.

Really Unexpected Situations 

The last category is everything else that you would never expect, but it’s happened. For example, we had a client who suffer a cybersecurity attack on their ERP system! Without their operating system, they couldn’t even carry out routine functions. They couldn’t even email us or send us their purchase order for several weeks! This actually happened over their holiday shutdown and for a week or two after it, so it wasn’t presumably during their busiest time of year, but it sure was frustrating for them while it was happening. Once they were able to restore their systems, we received the long-expected purchase order in plenty of time to start their project’s march to completion.

Things Rarely Go as Planned, but IntelliFinishing Adapts

There are so many possibilities of plans going askew that are outside of our control. We’ve come to learn that delays happen, so we adapt to ensure we do everything in our power to meet customer timeline needs.

At IntelliFinishing, we want to do more than just meet deadlines; we want to exceed customer expectations every time. The response from customers on our installation processes is overwhelmingly positive! As Bill Dunn, CEO of Manufacturing Resources International, said, “Everything was very efficient, and they were great to work with. It was amazingly smooth and painless.”

See How Our Systems Work

Our automatic finishing systems for liquid and powder coating are remarkably different. With a unique friction-tube conveyor and smart controls, it’s more efficient and process flexible than traditional chain-based systems and may take up a significantly smaller footprint, too. See how it works by watching some of our videos.

Variable frequency drives, or VFDs, provide efficient use of power, allow for productivity and control under different types of torque loads, and more.

After some brief information regarding motor controllers and torque loads, let’s explore the ABCs of these beneficial solutions – the applications, benefits and cost savings.

Different Types of Motor Controllers and Torque Loads

The core types of motor controllers are across-the-line motor starters, which come in full voltage non-reversing and full voltage reversing, soft start/stop controllers, and VFDs.

Across the line, full voltage starters send full voltage, typically 480VAC, to the motor – usually with an accompanying “clunk” that can even dim the lights. Essentially, these motor starters go “full throttle” as soon as they’re turned on.

That issue is slightly alleviated by soft start/stop motor controllers, which use a solid-state electronic device to ramp up the speed of the motor from 0 to 100% over a predetermined amount of time. It works the same way as it stops. This results in less wear and tear on the motor, but these still always go to full speed.

Finally, there are VFDs. Mountable in a motor control center or standalone, VFDs allow for the adjustment of motor speed over time, providing finer control while still realizing the benefits of less wear and tear on the motor.

There are also two central types of torque load. Constant torque loads exhibit roughly the same requirements, regardless of operating speed, while variable torque loads exhibit torque requirements that rapidly increase alongside machine speed.

In constant torque load applications, energy use is roughly proportional to speed. In variable torque load applications, energy savings aren’t linear.

Applications, Such as Finishing Systems, Benefits, and Cost Savings

In comparing soft-start/stop controllers to VFDs, SS controllers are primarily used for energy savings and to prevent excess wear and tear on equipment.

However, in applications such as an IntelliFinishing system, VFDs provide those same benefits while also offering the ability to adjust speed as necessary and to smoothly accelerate and decelerate carriers of parts as they travel through various sections of a system.

Ultimately, using a VFD on each motor controlling a section of friction tube conveyor on an IntelliFinishing system allows users to increase part density per carrier. This means more throughput in less time. This could amount to as much as 20% more throughput! Combined with the fact that most IntelliFinishing systems are monoplane in design, there are simply far fewer chances parts will bump each other as they wander through pressure washes, shot blasts, ovens, and booths for the typical finishing system set of processes.

Of course, it’s possible to use VFDs on indexing monorail systems or power & free chain systems too and this would greatly help with the amount of part sway often seen on these systems. That said, when a carrier of parts de-dogs or dogs from power & free conveyors, the inertial forces may still cause parts to collide if sufficient spacing between parts isn’t considered.

For an IntelliFinishing system, carriers can move at varying speeds per section, come to complete stops, and even reverse direction if desired (perhaps for a deadhead turn or to back up into a spur that may be a touch-up booth or for systems designed with shuttles that allow parts to enter a process and then back up out of that process when done.)

There are many other cases in which a VFD can provide measurable benefits to finishing systems and process equipment, such as on shotblast and wash motors.

Though installation costs are higher and there are other special considerations, such as more training for techs performing maintenance and special considerations to take into account, the added flexibility and easing of wear and tear on motors, plus the increased throughput can alleviate those costs over the life of the system and provide significant ROI.

IntelliFinishing is here to help you determine if our VFD-controlled, friction tube conveyorized automated finishing system might be the best fit for your unique needs and application. To learn more, contact us today.hh

Adding an automated finishing system to your operation can have a tremendous impact on efficiency, productivity and quality – and that’s why you’ve made the choice to invest in an industrial finishing system that matches your unique needs.

It’s also critical to get it right the first time and ensure the process results in a finishing system that not only delivers on its potential, but is ready to scale alongside your organization.

However, all customized automated finishing systems are expensive, likely costing your organization anywhere from $1 million to many millions in capital investment. While this investment will result in significant ROI and a lower lifetime cost of ownership, it’s still important to go see systems at work, especially if you don’t currently have an automated finishing system, before you even fully define your specifications.

So, when should you start your tour of systems currently in place and delivering benefits in real-world operations? The answer is as soon as possible.

Key Considerations to Help You Evaluate Systems You Visit

While seeing any system may help you understand how one might best fit into your organization, try to see one that:

• Seems to process parts that are similar to yours
• Uses processes that you’d likely want in your own system
• Has throughput levels about the same as you may need to hit your goals

But, even more importantly, don’t get locked into the traditional paradigm of an overhead, chain-based monorail or power-and-free conveyor.

Make a conscious effort to see something newer, more flexible and more modular, which can give you a better idea of the possibilities innovations have brought to life in automated finishing systems.

The IntelliFinishing Difference – See It for Yourself

IntelliFinishing automated finishing systems are unique and offer advantages that can’t be matched by traditional chain systems.

They provide recipe control per carrier, empowering you to finish a much wider variety of parts on the same system and let the recipe dictate the optimal process for each carrier of parts processed.

This allows you to cater to parts that require longer cure or paint times than others. Have extra-long parts that need to be finished in a relatively small space? A shuttle system can help to avoid large radius turns. Do you feel like your processes could change over time? IntelliFinishing systems can expand or be modified, and they’re never stuck at one speed or inextricably linked to every other process.

The earlier you can see automated finishing systems in action, the better. Even if you don’t ultimately choose an IntelliFinishing System, you are likely to make a more intelligent final decision, and you’ll certainly learn something.

Many of the systems we’ve installed are highlighted on our website in video clips. All of those systems often allow us to bring visitors. We also have many other systems that may be very similar to your needs that we haven’t captured on camera.

To learn more and see if there’s a compatible system you can check out to begin your own journey toward the perfect automated finishing system, contact us today.