GMI Press Release 2009

GMI Reverse Outsourcing Trend

By Billy Richardson, Production Manager of GMI

Founded in 1947 and headquartered in Renfrew, Scotland, Gas Measurement Instruments (GMI) designs, manufactures and markets a wide range of portable and fixed gas detectors to meet the high demands of a diverse customer base in industries where safety is critical.

About 15 years ago, the decision was taken to outsource the surface mount element of the business. At the time, this was a sound cost- and quality-based decision. However, rising subcontract costs and increased quality and delivery problems led GMI to a “make vs. buy” cost analysis in 2008.

Six vendors were initially selected as being capable of meeting the requirements and were subjected to a rigorous benchmarking exercise. At the end of it, Blakell Europlacer was selected as being the best fit for GMI requirements. The reasons for selecting Blakell Europlacer were as follows:

• Turnkey Solution ―It was the only vendor capable of supplying the turnkey solution. At the outset, all vendors were given the remit of supplying and maintaining a print machine (second hand), pick-and-place (new), an oven (new) and an AOI.

• User Friendly ― All of the surface mount expertise that existed 15 years ago had subsequently left the business, with the exception of the Operations Manager (who brought some knowledge from a previous company). It was imperative that any equipment purchased would be easily understood from a “no knowledge” standpoint by the operator and that with training would be self sufficient within a short space of time.

• Cost effective long term solution ― The turnkey solution was required to deliver a short payback period and also have the capability to service GMI’s forecast growth plan over the next five years.

One of the most encouraging aspects of the entire project was the timescales to full production. The capital expenditure authorisation was signed off in June and by September full production was in progress. This was all the more remarkable as it had been intended to build up PCBA stocks with the incumbent subcontractor to allow a gradual integration of surface mount within GMI. However, a less than amicable parting of the ways meant that surface mount had to hit the ground running in order to ensure that a heavy customer order schedule could be satisfied.

This has developed into a real GMI success story. Underpinned by excellent after-sales support by Europlacer, lean/six-sigma techniques such as the introduction of SPC and further investment in a paste measurement machine have produced a sustained first time pass rate of 99.8 percent. It also has given total control to all aspects of in-house manufacture over quality cost and delivery, and ensures customer confidence in the reliability of the gas detection units remains high.