INVESTMENT CRITERIA FOR METALFORMING MACHINERY
G. O'NEILL & B. SHIRVANI
Faculty of Engineering and Computer Technology,
University of Central England, Birmingham B42 2SU, UK.
The productivity level of the UK manufacturing sector, in particular in metalforming tends to
be less than our main competitors. The main contributory factors are machine capability and
efficiency. The aim of this work is to investigate how the investment in machinery for
metalforming is taking place.
A questionnaire was carefully designed to elicit data to assess criteria for machinery
investments. Initially 100 companies were approached of which 68 responded. It is from the
responses upon which this investigative analysis is based
In parallel, other factors such as age of machinery, training, skills, maintenance
methods, use of IT, automation, taxation and investment appraisal methods were also
considered and their effect on productivity / profit levels were investigated.
The analysis shows that the intangible elements, that is, skills, training and
maintenance methods used had a definite disparity when compared with other developed
countries. These elements are also directly related to the productivity levels.
The analysis also found that only 21% of the metalforming companies used any form
of productive maintenance methods. The amount of training allocated to designers,
toolmakers and maintenance engineers was less than 5% of the total training provided. Only
33% of companies used IT and automation in their processes. The age of machinery was
found to be a significant factor in the productivity levels.
It is concluded that the investments in machinery should be given greater
consideration when undertaking appraisal. Investment is not only the purchase of the new
machine and it should include the technological advances in design, training requirement and
maintenance. The overall investment should consider use of new technology in tool design
together with the necessary skills required to support and maintain it.
Keywords: Investment, Metalforming Machinery, Maintenance, Productivity