Haniff Machining

Haley Gregson, manufacturing engineer at Haniff Machining (Haniff), in Mississauga Canada, was working on an assignment for Matt Salsberg, Haniff’s operations manager. Haley had just graduated from college, and this was her first assignment. She had been asked to prepare a proposal justifying the purchase of a new 5-axis CNC machine.
• What labor cost savings are available through the acquisition of the new CNC machine? Is this a good investment?
• As Haley Gregson, what other factors would you include in your analysis? What information do you need and where would you get it?
• What are the differences between purchasing capital goods and raw materials? Between capital goods and services?
• What are the benefits to Haniff by standardizing to equipment manufactured by Mazak?
• Would you be prepared to use another supplier if the price of the equipment was lower?
• What benefits does the new equipment provide in the areas of quality and inventory costs?
• Can you quantify all of the potential savings? How do you put a number on improved safety?
• How will the new equipment change the flow and material handling in the plant?
• Do you want to in-source some of the production at the supplier?
• Are the maintenance costs on the new equipment going to be more or less expensive?