Factory of the month Soil Machine Dynamics
A more standardised production system From a standard telecom plough, SMD’s product range has grown into a diverse subsea machine portfolio. The challenge now is to finetune a production system that reduces build time using cells for a standardised specification, while keeping flexible enough to produce one-off machines to any specification. “We’d like to standardise the range as much as we can, to bring costs down. At the same time we believe we have a competitive advantage by providing all the supporting equipment for the machines – the deployment systems and control units,” says Imlah. “Some competitors are less able to do this We regularly provide turnkey solutions to match the deployment systems to the available space and layout of the vessel or rig.” Today the company has repositioned itself as a major ROV player in the global oil and gas industry, while still sustaining some telecommunications and renewable energy business. Its oil and gas credentials were endorsed in July when SMD signed a new contract with Subsea 7 for 20 ROVs – with an option of a further 10 – to a new SMD design, to be delivered over the next 18 months.
It is a challenge and has required a large change in approach from bespoke, one-off engineering activity to a more standardised production system of identical product – but we’ve still had to maintain flexibility Peter Imlah, managing director A few years ago this delivery schedule would have been impossible, but the firm is developing a standard production process which can deliver two machines a month, which it intends to expand to three a month. It has also hired 100 people this year, bringing headcount to 260. Can SMD hit 20 machines in 18 months? “We’re contractually committed to do it, so we will,” says Imlah. “It is a challenge and has required a large change in approach from bespoke, one-off engineering activiy to a more standardised production system of identical product – but we’ve also had to maintain flexibility.” The frequency and variance in the order book has forced SMD to adjust the way it builds its product.
Soil Machine Dynamics at a glance SMD is a highly successful engineering company based in Newcastle upon Tyne specialising in the design and manufacture of complex engineering systems, combining integrated networked optical control and highly reliable electro-hydraulic systems with unique mechanical design. Its products and capabilities have made it a world leading supplier of subsea vehicle and support systems to the telecommunications and offshore markets with customers in the UK, Europe, USA, Japan, Singapore, Korea and the UAE. In 1986 SMD had an annual turnover of £2m and employed 10 people. In 2001, turnover was £45m with permanent staff of 75, at times up to 120 additional temporary and contract staff. Today it employs 260 people, 100 of which were hired in 2010, and turnover is £65m.
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