Precision Machining Group: A Category of One

View This Article in BOSS Magazine

How Precision Machining Group delivers excellence without compromise in the best and worst of times

“The precision machining market is relatively unknown and may be taken for granted. The work is highly complex, engineered, and needs to be repeated with 100% quality at 100% satisfaction, day-in and day-out.” That’s how Alex Vogl, CEO of Precision Machining Group, describes the precision CNC machining sector.

When a production run of a single part could mean 10,000 to 30,000 units that must be within several thousandths of a critical tolerance at every point without causing a form, fit, or function problem, getting it right 100% of the time is just the baseline.

PMG supplies precision machined components for the Aerospace and Defense, Materials Handling, Fluid Power, Energy, Agriculture, and Industrial markets. “The majority of parts we make are for critical applications such as housing drive axles, fluid power manifolds, and brake housings,” Vogl said. “Providing out of spec components may trigger a recall or cause a safety issue for the end user.”

Three companies compose PMG: New Dimensions Precision Machining, which caters to the fluid power industry, manufacturing manifolds for the heavy equipment, industrial construction, and agriculture markets; Northfield Industries, primarily a lathe machine manufacturer serving the agricultural and materials handling markets; and D&N Machining, which, in addition to machining, provides magnetic particle testing and plating for customers in the industrial, oil and gas, and aerospace sectors.

According to the CEO, PMG differentiates itself from others in a fragmented market by becoming an extension of their customers and providing the precise solutions they need with zero quality compromises. Their agility during the pandemic leaves no doubt about why they are a partner of choice. “We believe our service and performance makes PMG a category of one machining supplier,” he stressed.

As did many other companies, PMG took a hard hit in the early months of the global health crisis. Revenues dipped sharply, but they did not lose a project or customer. Then, in November 2020, without warning or forecasts, demand skyrocketed. To manage, they increased their workforce by 30% and attempted to backfill their finished inventory, which was consumed by the sudden uptick. Getting stock from overseas would take months.

“Although it could be argued PMG wasn’t responsible for orders far exceeding what had been forecasted, we air-freighted orders at our expense to prevent customer line-down scenarios,” Vogl revealed. “The decision was made to differentiate PMG, be a true partner to our customers, and remain a category of one supplier.” For three months they air-shipped orders on their own dime. Demand continued to rise at an unprecedented rate as ocean freight lead times slowed from three weeks to eight and, at times, 10 weeks.

The crunch presented an opportunity for the company to improve operations. “We had a successful model that was predicated on having 10 to 12 weeks of inventory. When our inventory was immediately absorbed, it was a pivotal moment,” he said. “We needed a creative solution.”

Their solution: creating an internal algorithm that combined the customer forecast and open order reports, their offshore suppliers’ production schedule, their freight forwarder’s  ocean  transit schedules, and PMG current inventory  report.

Layering the reports gives PMG full production visibility three to four months in advance. With an accuracy rate over 95%, the predictive model provides their customers with lead time to react, analyze their production schedules, and make any necessary changes.

“Instead of living just in time, hoping containers would be received the week orders were due, we now confidently know months in advance,” Vogl said. “That positioned us as a market leader in providing holistic transparency and visibility for our customers.” They are currently implementing a cloud based MRP solution that will centralize data gathering and analysis across each division.

The company also began exploring alternative solutions for their offshore supply base, seeking to avoid long lead times, rising costs, and geopolitical concerns in China. “Expanding our supply chain outside Southeast Asia to places closer to home in Central and South America is a huge need that’s been driven by disruption and cost,” he said.

In January and February PMG visited more than 10 prospective suppliers over a two-week stretch and are currently working with four of them. The goal is to on-board and be in production with at least eight Mexico suppliers by end of year.

Total customer satisfaction requires more than ability; it also necessitates strong, transparent customer relationships. "Our customers must trust us at every internal level, from purchasing to engineering to scheduling. They need to have confidence in our recommendations, and to believe our recommendations are for the mutual success of the project,” he said. The PMG way is upfront, honest, and riveted on customer service. “We partner, collaborate, and provide solutions.” Precisely.