Any company that produces a product, has some sort of consumable investment; they have to use one product to produce another. For example, in the Automotive industry, they are required to use hundreds of other capital equipment and indirect/consumable tools to create their product, such as; drills, taps, grinding wheels, honing wheels, etc. These tools typically perform value added services to the part. These value-added features have a cost, reducing this cost increases profit margin per product. Typically companies approach this situation by researching the market for suppliers that have more advanced, more sophisticated tooling.
SuperAbrasives Grinding Solutions
I had a client in 2012, that was looking to reduce their tooling cost by 40%. To achieve this task, we brought in a team of 25 people, and quoted all of the tooling in their plants. We negotiated with suppliers to leverage overall purchasing power, as well as, searched for suppliers that had industry advanced tooling. These were companies using PCD(Poly-Crystalline Diamond) tipped tooling, which drove overall tool life up by over 400% compared to High Speed Steel coated. An expensive operation for these companies is grinding. Typically grinding needs to be performed on an metal objects that are spinning against or close to each other. These grinding wheels are expensive, due to the hardness characteristics and precision that is needed in the process. By reducing these costs, most companies I have worked with, observed almost 15-20% reduction in tooling cost when sourcing their grinding products.
Maximizing Your Abrasives
I remember this one company I worked with, they were spending close to $250K annually on grinding wheels for removing casting material on the mains of a crankshaft. The were using a name-brand product, stock/typically market product to perform this process. We researched the market for cost competitive suppliers. We came across a Diamond Grinding Wheels Manufacture(SuperAbrasives.com) we ended up using their Maximizer Grinding Wheels to perform the same process. After one year of implementation, they saw a reduction of tooling cost for grinding wheels of 64.8%, resulting in an annual spend of $162K.