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In any fabrication or manufacturing shop almost every company asks themselves one simple question sooner or later: how do you identify your biggest opportunities for process quality improvement? Today, the numbers and data behind the answer to this quality improvement question are at our fingertips already, we just need to look a little closer.

When looking at a typical North American pipe fabrication shop, we know the average repair rates at are between 3-5% a year. Unless a shop can find a way to reduce this number, it places them is a challenging situation when it’s time to be competitive and win new business. Within the numbers, a Spool Welding Robot (SWR) can lower this annual 3-5% a year challenge down to less than 1% by producing consistent, high quality welds. A perfect example of the data behind the numbers in a real situation.

If you run a simple mathematical question and equation, just like in math class from back in your school days of a typical fabrication shop’s repair costs, here is what it could look like:

  • 6,000 welds per year with a 3% repair rate = around $180,000/year in repair costs.
  • Reducing the repair rates to 0.5% = recover around $150,000/year back onto the bottom-line.

In that simple process you have just found a way to add $150,000 back into your bottom like. How can that impact your business operationally, financially or in a competitive bidding situation for new business?

The proof is always in the numbers, and companies like Muga Fab have the data to back up their success over the past 10 years, where they have seen repair rates for their fabrication shop reduced down below the 2% mark in general and if they look closer at just the SWR, the repair rate is about 0.5% on projects when welding 12” – 36”, carbon steel and chrome pipes.

What is your next step to ensuring your shop improves your data and numbers in your business equation? It’s time to connect and start the conversation in your buying process.

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