Argo factory floor adapts to new-model approach

With a challenging economy affecting its traditional markets, Argo has had to alter its approach to marketing its vehicles. A nimble assembly process and metal treatment upgrades are making the changes easier to manage.

The distinctive, patented wheel design that helps the Argo “paddle” across rough terrain and water.

The distinctive, patented wheel design that helps the Argo “paddle” across rough terrain and water.

No business is truly recession-proof, but many are able to adapt in such a way that during hard times they find new markets in which to thrive. Argo has altered its marketing approach this past year to do so. At the same time, the company has also continued to alter and update its work flow and equipment to improve efficiencies and product quality.

The Argo is an amphibious ATV created in Kitchener, Ont., by Ontario Drive & Gear (ODG) in 1967. ODG designs and manufactures power transmissions and gears for the North American market. Argo has become a successful subsidiary in its own right. It is well-known for the vehicle’s patented wheels that allow it to “paddle” through rough terrain and water and its vacuum-formed body, made of a dense polyethylene material. However, the stability and running of the Argo also rely on fabricated steel.

New-Model Launches

The brand has been a strong one for many years, but with its heartland market in Alberta struggling with low oil prices, and geopolitical forces affecting another large customer, Russia, Argo found a need to rejig its approach to the market. To that end, it launched 12 new models and nine new vehicle lines in 2015.

“Our product has a diverse range of applications,” said Matt Chandler, project development manager for Argo. “This can include utilities workers who have to go down a cutline to fix a transponder, or first responders needing to get to an out-of-the-way location. And on the recreation side, it is the be-all and end-all for big-game hunters.”

The Argo has always been an attractive vehicle for each of these groups, and the company would offer a variety of add-ons to address the need of each application – for instance, a stretcher kit to attach to the back of a vehicle for first responders or a fold-down tailgate for duck hunters. However, in the past buyers would have to choose which add-ons to include on their vehicles. With the 12 new models, all of those decisions are made for them.

“Now we can say to a particular client, ‘We’ve got the first-responder unit for you – the siren, the stretcher, it is all included,’” said Chandler. “It’s that mental jump the customer no longer has to make. There is less of a need for them to think through how they are going to build their vehicle.”

Production Efficiencies

Doing a final check on a completed vehicle.

Doing a final check on a completed vehicle.

Argo builds about 1,700 vehicles a year, and each one is essentially a custom build; even with the new-model concept, no Argo is built prior to an order being placed. This makes production efficiencies an important consideration, and the company tries to keep its production floor as lean as possible.

“We only build vehicles that have been ordered, so we are always working about two to three days ahead of when a vehicle is going to be shipped,” said Kevin Schmidt, production manager for the Argo. “We don’t hold a lot of inventory here. We have tried to do a one-piece flow, but when you have any kind of hiccup in your process, you are stuck. Now, with any key components we think we might have a problem with, we have about three or four spare pieces. That means we are about four hours of product ahead of schedule. If anything happens with that one piece, it doesn’t stop the line. At the same time, this helps us keep inventories down.”

Argo has created a bin system to ensure that there are just enough parts on hand to keep the work flowing. Separate bins are marked with coloured magnets. Usually two bins of each part are on hand – one set that is ready to go to production, and the one behind it that serves as inventory. Once a bin is emptied, that part is automatically reordered.

“The orange and white magnets indicate purchased parts,” said Schmidt. “Orange indicates critical parts that could shut down the line. The third colour we use indicates parts that are made in-house and can be turned around quickly.”

The process efficiencies and lean aspect of the inventory system mean that Argo now turns around product in each bin in about five days. Equally, very little raw steel is kept on hand in the shop at any time. Argo doesn’t actually do a lot of its own fabricating, but even with material volumes low, the team is kept busy. The company has two small bending machines for maximum 1.75-in.-diameter tube, two stamping presses (100 ton and 80 ton) to build muffler components (the dies for which are produced in-house), and two saws.

“We are building about eight or nine machines a day,” said Schmidt. “We don’t have a lot of room, so material volumes are kept as low as we can. It actually helps with our quality because guys get their hands on the parts every five days. If you are seeing a part only every month to six weeks, you aren’t that familiar with it.”

Weld Process Flow

The welding department, meanwhile, is still in the process of being streamlined. Argo has one robotic welding cell it uses to weld the axles and some hubs for the vehicles.

“The quality of the weld for these particularly critical parts goes way up using the robot; the consistency is very good,” said Schmidt.

An Argo employee at work, welding a vehicle frame. Argo, with the help of its supplier, Miller Electric, has chosen to outfit its welders with person protective equipment rather than using fume hoods or other devices to manage welding fumes. Production manager Kevin Schmidt noted that the team has adapted well to using the equipment. “You know they like it when you see them using the equipment every day,” Schmidt said.

An Argo employee at work, welding a vehicle frame. Argo, with the help of its supplier, Miller Electric, has chosen to outfit its welders with person protective equipment rather than using fume hoods or other devices to manage welding fumes. Production manager Kevin Schmidt noted that the team has adapted well to using the equipment. “You know they like it when you see them using the equipment every day,” Schmidt said.

Argo has a team of seven welders that build the base frames for the vehicles. All of the laser cutting and larger part bending required for the Argo products is done at Stratford, Ont.-based Chrima Metal Fabrication Ltd., a longtime business partner. In fact, Chrima invested in a BLM Group tube bending system just a few years ago to serve the needs of customers like Argo. It is also equipped with a TRUMPF laser tube cutting system.

Argo has plans to further simplify the work process in the welding department this year. Currently all parts needed for a frame are delivered on a cart, assembled, and then removed on a cart. The intention now is to create a monorail system that takes finished parts right to the paint department.

“This won’t change our manpower levels on the shop floor, but it is going to make it easier ergonomically for our welders to do their jobs,” Schmidt explained.

Coating Upgrade

The most recent and dramatic change Argo has made on the production line is the installation of a new Henkel BONDERITE® M-PP 930™ coating technology system. The system is designed increase corrosion resistance in a reduced processing footprint. These water-based coatings contain no toxic heavy metals, generate no sludge and allow the waste water to be treated and disposed of in an environmentally friendly way. They also contain very low amounts of volatile organic compounds, which is important on a relatively small shop floor like Argo’s.

The other advantage the system has is a much smaller footprint compared to other dip tank treatments. Conventional pre-treatment processes require as many as 14 dip tanks, while this co-cure system requires as few as 7.

Also, with conventional processes, the first coat is cured in a primer oven, after which a top coat is applied, which requires a second curing in a top coat oven. With this co-cure process, however, the primer and top coat layers are cured together in a single step. This requires less energy use and, again, a smaller footprint.

The Aquence ® 930™ coating used in the system is an epoxy-acrylic urethane coating.

Argo has a dip process treatment line, and each part goes through nine different treatment stages to ensure the part is clean and that the coating and paint will adhere effectively.

Argo's newest addition is its Henkel BONDERITE M-PP 930 coating technology system for its paint operation.

Argo's newest addition is its Henkel BONDERITE M-PP 930 coating technology system for its paint operation.

“The treatment process probably takes 20 per cent longer than our previous system did, but it is worth it for the improvement that we got in quality,” Schmidt said. “The results are much better. When you are dealing with a vehicle that is for extreme applications, it doesn’t always get well taken care of. We were having a little issue with rust in certain areas of the vehicle, so we needed a new treatment system. This was the more ecofriendly treatment process we found.

“We were also able to get it up and running quite quickly,” Schmidt continued. “It was installed in August, and I thought it would be six months before we were up to speed with it, but it really took us only three. And it wasn’t the process itself that took us that long to best understand, it was figuring out our fixturing for the process.”

Maintaining Quality Output

There are checks and balances at every stage of the two assembly lines at Argo (one line is for the standard wheel base product, and the second shorter line is for the larger XT line). After finishing a particular job, an employee will sign off on that job. The next person in line rechecks that job and then does his own. This continues throughout the production line.

To encourage accuracy and consistency, Argo has a system whereby for each day a person goes without an error or redo, they receive a point. These points accumulate and can lead to particular rewards for those who demonstrate outstanding performance.

“Like any workplace, it is important to recognize team members for the quality of their work,” said Schmidt.

The unique product Argo builds has drawn interest from customers all over the world. The Argo has been shipped to more than 200 countries, and soon enough an autonomously controlled version of the vehicle should be going to Mars. A separate robotics division of the company has been tapped to develop a Mars rover for NASA.

Here on Earth, however, it will be Argo’s attention to detail and quality maintenance that should see the company continue to flourish.

Robert Colman can be reached at rcolman@canadianfabweld.com.

Argo, 519-662-2840, www.argoxtv.com

Chrima Metal Fabrication, 519-271-5399, www.chrima.ca

About the Author
Canadian Fabricating & Welding

Rob Colman

Editor

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Robert Colman has worked as a writer and editor for more than 25 years, covering the needs of a variety of trades. He has been dedicated to the metalworking industry for the past 13 years, serving as editor for Metalworking Production & Purchasing (MP&P) and, since January 2016, the editor of Canadian Fabricating & Welding. He graduated with a B.A. degree from McGill University and a Master’s degree from UBC.