Abstract Articles: Line Transfer Saves U.S. Jobs
“An Alternative to OEM Outsourcing Offshore”
By: Stan Modic
Big Original Equipment Manufacturers feel they have two choices: Produce or Buy-both usually involves low-cost foreign sources. Flinchbaugh Engineering Inc. (FEI) believes it has a better idea: transferring the OEM’s today is a complete manufacturing facility that specializes in close-tolerance, precision machining of complex parts using production lines that formerly were operated in big OEM plants. It’s the offshore vs. on-shore debate. “We have so many companies that are going overseas because they think it is the thing to do. The problem is they are not looking at their total cost,” said President of FEI, Michael Lehman.
FEI cannot compete with the price-per piece, but they can compete in overall cost savings. “The key objective of the line transfer concept is to reduce cost and increase competitiveness of the OEM, and, of course, keep manufacturing jobs in the U.S.,” says Lehman. When FEI hears an OEM is closing its doors, they propose to come in with their team of engineers and study the feasibility of revitalizing machines that companies are ready to trash, and get many more years of productivity out of it.
Lehman insists his agreements with OEMs are partnerships and not simply vendor relationships. “By working together we can solve perplexing problems of how to compete with off-shore sources without losing control of finish machining to foreign vendors.”
He also believes in total productive maintenance; by restoring the machines back to their one-two year conditions, by tightening the bolts and making engineering adjustments. Lehman did not invent the idea of “line transfer,” but he does not know of anyone using it as a complete business concept.
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