Vickers, Incorporated was at one time considered the manufacturing world-class leader of vane and piston pump products. The company has seen its yearly sales decline from 1990 thu 1994. They have lost their edge in their market due to the lack of research and development and small businesses pirating their product. They are also struggling with union personnel issues. Currently, Vickers is working through the 7th round of negotiations with a contract that will expire in 2 weeks.
The plant measures 456,000 square feet that is expressly devoted to the production of hydraulic components. Much of the plant is over forty years old and shows its treatment. There is significant floor space allocated to obsolete machinery and just gathering dust.
Omaha should consider restructuring the manufacturing process. This would increase the plant's flexibility, which would lower lead times and meet higher percent of its delivery commitments.
Sales Capacity for vane pumps has been estimated at 780,000 units. Omaha is currently producing 275,000. Parts sales for vane pumps are increasing. Vane pumps are comprised of 65 parts. The ring, rotor, vanes (3 most critical), cover, inlet support plate, outlet support plate, shaft, and body were all manufactured simultaneously in house.
Piston pumps comprise over 50% of the world's market. There were 1,085,000 units sold in 1994. Sales have shown a 15% annual growth. Omaha has only captured 9% of the market with sales of 95,000 units. North American sales represent 1/3 (385,000 units) of the world's volume. There are 2 types of piston pumps: A 1) radial pump, which works similar to a vane pump and an 2) axial pump. The axial pump is comprised of 100 parts. The housing, yoke, cylinder block, valve block (4 most critical), shaft, piston, shoe,