The marketing people at Hexagon tried to set up a meeting with Mike Payne, co-owner and president, Hill Manufacturing in Tulsa, OK, while we were at the Hexagon Live event in June in Las Vegas. We couldn’t connect then, but we finally caught up this week. I wanted the meeting because while talking to product people at the company brings in depth product information, people who actually use the products for daily success bring an entirely refreshing perspective.
Payne graduated from the University of Tulsa with a degree in management information solutions. He and a couple others founded a software company focused on shop floor data collection. The software collected data from automation and sensor devices providing the data to ERP. He eventually left the company pivoting into making investments. After a period of time, he decided he missed manufacturing purchasing Hill Manufacturing from the Hill family around 2017.
Hill Manufacturing is a production machine shop. The company had been in business for about 40 years pretty much making the same parts for the same customers in the same way.
Payne dived in studying Hill’s current processes. He began to bring technology into the processes leveraging it for productivity improvements. Now, he says, it’s more of a tech company that makes parts than a standard machine shop.
The key driver is driving productivity. Like everyone these days, he experienced the pain of finding new employees. Plus, leveraging technology to improve processes enables his current employees to produce more parts. It’s a tough business. Whittling out a little more profit for each part keeps the company healthy.
Staying active on the investment side, Hill had acquired several other machine shops. The company has grown from 22 spindles to 63. With each acquisition, he’s discovered many improvements to productivity and profitability comes with upgrading technology on the machines he’s acquired. Upgrading older machines with new technology provides a new lease on life that he calls a Second Round of Life.
He mentioned AI in the front office. Since I was working on a podcast and essay on AI, I was all ears. Hill uses AI in a couple processes. Using Toolpath application, they take the 3D model from the drawing and use AI with their CNC programming software to do the actual programming. It’s theoretically capable of providing 100% of a program. They’ve discovered that it’s really about 80% good. But that makes his programmers 80% more efficient.
AI is also pretty good at reading G code from the CNC program. They can translate the code to English and enter into their shop floor management software. Workflows, tool setups, and other work instructions are provided to operators to make them more efficient and effective.
They use laser measurement devices from Hexagon (remember Hexagon?) close to the machine for immediate quality feedback. They also use Datanomix, a Hexagon partner, to improve productivity.
Payne searches constantly for new technology to improve processes. He mentioned how new coatings on a drill, for example, improves productivity. Tooling and workholding advances also contribute.
Using technology to improve processes and productivity is the foundation of Hill Manufacturing’s success. He can’t solve problems by adding more bodies, so he fills in with technology. Hill now does 2x revenue with 2/3 of the people. With today’s demographics, Payne provides a great example of intelligent use of technology to solve business problems.
