DMG Mori is offering Precision Protection—coverage to protect its customers’ investments when leasing or buying DMG Mori machines. DMG Mori partnered with a global risk management and benefit solutions broker and an engineering and technical risk insurer to offer this exclusive coverage.
Precision Protection is designed to keep overheads fixed while reducing the risk of unexpected costs and disruptions to cash flow. The key features of Precision Protection are: full repair costs (parts and labor) in the event of a breakdown, including operator error, mechanical or electrical failure, and programming error; with a fixed cost for five years.
“We looked for an insurance company and broker that would provide five-year coverage with a fixed premium, unlike annual insurance policies which adjust premiums in the event of a claim,” said Fraser Marshall, sales training manager, DMG Mori USA. “This is not just an extended warranty as in addition it includes protection against operator error.”
“Think of it this way—we all purchase insurance for our car and home, not because we expect to have problems” explained Marshall. “It’s for peace of mind, knowing that if something happens you’re covered, resulting in minimal disruption and cash outlay.”
Common causes of a machine breakdown are from the results of power surges, operator error, mechanical failure, and programming error.
A typical example of operator error is when the operator incorrectly programs a tool length offset, which results in a collision between the tool and the machining fixture or part, which in extreme cases requires the spindle to be replaced.
According to Marshall, a large percentage of customer calls requesting service are the result of operator error, such as the above example. We are after all only human, and as such can become distracted, tired, or rushing what we do.
“Skilled labor is an ever increasing issue in manufacturing today, and as customers strive for improved productivity through technology, the best training in the world can only mitigate human error so far,” said Marshall.
The typical spindle replacement is $25,000-$40,000, according to Marshall, and smaller companies don’t necessarily have this kind of cash flow. Precision Protection carries a deductible of $1,000 per claim irrelevant of the size and cost of the overall repair.
DMG Mori actively educates all new customers on the benefits of Precision Protection.
“Budgeting for the unexpected at $1,000 per claim frees up working capital to grow and develop the business in other directions,” said Marshall. “Plus when the asset is financed the premium is spread over the duration of the term. For instance the cost of Precision Protection on a 400 mm horizontal machine running two-shift is less than 80 cents per hour.”
Making a Claim
The first step is for the policy holder to call DMG Mori service. Unlike many insurance programs Precision Protection is not intended to be a hurdle to getting the machine repaired, in fact just the opposite. DMG Mori will immediately schedule the repair, and at the same time remind the customer to call the insurer to inform them that a claim is pending, once the repair is completed the customer forwards the invoice to the insurer, and within 10 working days the customer will be reimbursed.
“This is a hassle free process for the customer,” said Marshall. “In the UK we have had this type of program running for about 10 to 11 years, and it is a very successful. Based on my experience, about 60% of all DMG Mori equipment being supplied today in the UK includes Precision Protection.”
The only criteria for the customer is to maintain the machine to DMG Mori’s guidelines and follow the annual maintenance plan.
According to Marshall, as DMG Mori evolves with Industry 4.0, Precision Protection will focus on being proactive, saving further time, and educating the customer to maximize their potential to make money.
Thanks to smart sensors, and Condition Analyzer within the CELOS control DMG Mori will know when something is wrong often before the customer knows themselves.
“We are putting more sensors on today’s machines,” said Marshall. “These in turn monitor temperature, vibration, pressures, and loads. Similar to a car’s check engine light—this allows extended machine operation within a safe operation window as the customer is now warned about a potential issue prior to catastrophic failure”.