In-House Fabrication Strategy for Lincoln Electric
Engineering and Management capstone developing an in house fabrication strategy for Lincoln Electric to cut projected lead times by 50 percent, reduce outsourced manufacturing costs, and improve quality and design control.
Overview
As part of my final year Engineering and Management capstone, I worked as the Technical Consultant on a five person team supporting Lincoln Electric. We evaluated how shifting critical fabrication processes in house could help the business move faster, reduce dependence on vendors, and improve overall quality and control.
The Challenge
Lincoln Electric was outsourcing much of its fabrication work, which created long lead times, higher vendor costs, and less control over designs and production quality. The project set out to reduce machining and welding costs by 25 percent, cut fabrication lead times by 50 percent, and keep drawings and intellectual property fully in house. The challenge was to identify a solution that made financial sense while also fitting real operational constraints such as floor space, staffing, power requirements, and implementation risk.
Approach
We approached the project as a structured business and operations analysis rather than a simple equipment recommendation. First, we studied Lincoln Electric’s fabrication requirements and cost structure to understand where time and money were being lost. We then researched and compared two in house production strategies. The first option paired a five axis CNC machine with a hydraulic bender. The second used a three axis CNC machine, a hydraulic bender, and a plasma table. From there, we evaluated each option on lead time reduction, cost impact, quality performance, and implementation feasibility, while also reviewing key risks such as supplier delays, installation safety, maintenance downtime, and calibration requirements.
Results
Our final recommendation was to invest in the five axis CNC machine and hydraulic bender combination. Although it required a higher upfront investment, it offered the strongest long term operational value. The proposed setup reduced fabrication lead time from about 6 weeks to 2.5 weeks, which represented an estimated 58 percent improvement. It also removed the welding and machining portion of outsourced costs, which accounted for 63 percent of total operating cost, or about $149,000 based on 2023 figures. Under the team’s assumptions, the recommended solution projected about $307,948 in savings by year 10 while also improving precision, reducing manual intervention, and giving Lincoln Electric more control over quality and design confidentiality.