Customer Success Story : Tamarack Products
How this job shop increased machine utilization by 10% in one year
Who is Tamarack Products?
Tamarack Products was founded in 1969 and is a leading global manufacturer of specialized equipment used in the packaging, label, and business form industries. Recognized worldwide for providing high-quality machinery, Tamarack designs and manufactures systems for inline film/window patching, RFID inlay insertion systems, web finishing equipment, and other applications.
With 33 employees today and revenues approaching 10 million, the company attributes its success and high customer satisfaction to providing exceptional service with responsiveness to customer needs, customized solutions, and high-quality, precision equipment. Tamarack Products ensures that their customers’ equipment is up and running to their specifications with on-site installation, training, and service.
Machine utilization increase in one year
Annual revenue increase
Increase in headcount
The challenge
For this job shop, being competitive is about maximizing output without adding to headcount. While many shops struggle to maintain the status quo and grow through the industry’s turmoil, Tamarack’s production capacity has increased. That’s an even more impressive feat, considering the company has had an average headcount of 33 employees for several years.
Tamarack had already been working with JobBOSS² and knew they needed to increase machine utilization to gain more shop floor efficiency and production—especially given the industry’s economic conditions. Naturally, they thought, Alora made sense due to its integration with the JobBOSS² enterprise resource planning (ERP) solution from ECI Software Solutions. Tamarack also recently purchased two new machines and wanted to see how well the equipment was being utilized. Alora would be able to provide the detail by machine at a job, order, or operator level given the integration of data between the machines and JobBOSS².
“I know when the machine shop finished every part, and I know about the utilization of each machine going into each part. That’s essential to our profitability and being able to provide accurate estimates on similar jobs going forward.”
The solution
Stephanie Felber, comptroller at Tamarack Products, and the team at ECI led Tamarack through a six-month implementation process. ECI’s team set up Alora, transitioned the machines and operators to the software, tested the system’s communications capabilities, made sure the system was running smoothly, and trained Tamarack’s operators. The company plans to set up monitors at each station. For now, the Shop Manager reports the utilization data to the team on a weekly basis.
The impact
Once the implementation phase was finalized, visibility into the job number information and associated shop floor activity really helped Stephanie see the productivity by machine. “I could see that a job ran for three hours and which machine it ran on. I could go back and see the percentage of utilization for a job with Alora if need be.”
Stephanie often refers to a puzzle analogy. She says, “Optimization is a matter of scheduling the right jobs on the right machines, at the right times.” She credits Alora with providing the visibility she and the Shop Manager need to determine the most efficient sequence of steps for every combination of projects on the shop floor. One of the most noticeable improvements is the ability to immediately respond to utilization declines, rather than wait a week for the traveler to reveal a problem.
“We are monitoring our machine utilization processes in real-time, and much more closely than we were able to prior to Alora. Being able to analyze the data on jobs and to cost out parts is a lot quicker, because we’re not doing it manually anymore.”
“For example,” she continues, “in the past, a machine operator would think a part only cost $200 because they estimated their hours at the end of the day. Now, we can see the reality of how long it took and its true production cost. We have the setup vs. cycle time detail that we did not track previously. We’re also not adding to that time by rifling through loads of paperwork.”
“To date, we’ve had a 10% increase in machine utilization overall, and we know that Alora can help us to continue to further increase our efficiency.”
Before JobBOSS², the team had to backtrack from information in the traveler a week or two after the fact. During that time, the part might have gone out for anodizing or finishing, and then it sat in a stack of products to QC, test, and review before Stephanie got it. There was no doubt that profit margins were inconsistent as a result of getting incomplete information too late in the process.
“With Alora,” Stephanie says, “I know when the machine shop finished every part, and I know about the utilization of each machine going into each part. That’s essential to our revenue and profitability growth and being able to provide accurate estimates on similar jobs going forward.”
Before Alora and JobBOSS², the company was generating $6 million annually. Today, that figure stands at roughly $10 million. By automating the process with JobBOSS², Tamarack had been able to maintain the revenue increase.
As the shop has become more efficient using Alora, the company has grown without adding any new employees or machines. That’s due largely to how Alora often reveals that scheduling difficulties are the cause of under-utilization. Stephanie says, “It shows that we had availability in our schedule. As the scheduler, I could have had a machine operator loading something in one machine while still working on the other machine. Alora brings these issues to the forefront.
“By Alora showing the utilization on a timely basis by machine and the average for the week, we can address it. That’s really important when we have multiple travelers for a machine that could be running 24/7 if we had the manpower.”
In talking to Stephanie and her team, it’s clear there are different processes going on at once in this busy shop. Often, the resolution is to pull the part out, reset the machine, put everything back in and do another process on the parts going through production. There may still be some downtime, but well-timed switchovers improve process efficiency and machine utilization. Tamarack can track real-time machine utilization and downtime and explain the reason for the increase or decrease on a weekly basis.
“To date, we’ve had a 10% increase in machine utilization overall, and we know that Alora can help us to continue to further increase our efficiency,” Stephanie proudly reports.
Change is challenging, especially for experienced machine operators who have been doing things the same way for 10 years, but JobBOSS²/Alora is giving Tamarack’s team the opportunity and the insights to make those necessary improvements. It’s about empowering the company’s machine operators to look at the data and proactively find solutions. From Stephanie’s perspective, “It’s about creating those ‘a-ha’ moments!”
Now that the team is becoming proficient with the software, and data is being stored historically, the software should prompt the production manager to give specific guidance in terms of sequencing. As Stephanie puts it, “Put this part over here and start this part over there, because this part is taking two hours and that part takes 15 minutes. So, you start the two-hour job, then go over to the 15-minute job.
“This is leadership in action, solving the machine sequence puzzle, and JobBOSS²/Alora helps us to piece it together in a way that we wouldn’t be able to without it.”
More data will increase utilization and decrease project lead time
Stephanie reports that JobBOSS² was not telling the team what jobs or tasks to schedule ahead of time because all the necessary shop floor data was not yet in the JobBOSS² system. “Alora is helping us to get that data into JobBOSS² so we can drive process improvements,” Stephanie says.
Looking forward over the next 12 months, the Tamarack team expects to schedule smarter using the data it is gradually accumulating in the system. Stephanie expects overall machine utilization to go from the current 30% to 40% in the next three months to 60% in the next year.
Stephanie also expects Alora to help with shortening project lead time. “Instead of taking six months to get the machine out, we should be able to get down to, at most, four months, and still respond quickly to customer needs and requirements.”
Stephanie and her team are always eager to recommend Alora to friends in the industry. She says, “If they have the personnel and they are looking for ways to do more with a streamlined staff, I think Alora is the way to understand how to put the machine utilization puzzle pieces together for optimal efficiency.”
“Alora along with JobBOSS² can show us what we need to do, when we need to do it, and how quickly we can do it.”