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