Manufacturing Economics: Quantifiable results

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Manufacturing Economics Quantifiable results

• A model by Sandvik Coromant

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2005 Cutting Tool Survey

• Most important product attributes when choosing a
  brand
• 58 Tool life
• 35 Resulting part quality
• 32 Reliability
• 24 Price
• 18 Cost per edge
• 15 Product support
• 12 Versatility

Nelson Publishing, Cutting Tool Survey,
January 2005
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The Impact of Cutting Tools
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250,000 investment
15 insert
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Price, Tool Life or Productivity?

• Decreased price
• Increased tool life
• Increased cutting speed and improved process

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Price, Tool Life or Productivity?

• Decreased price
• 30 decrease in price only reduces total cost
  per component by 1
• Increased tool life
• 50 increase in tool life only reduces total
  cost per component by 1
• Increased cutting speed improved process
• 20 increase in cutting speed improved
  process reduces total cost per component by 15
  or more

-1
-1
-15
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Machining Economy Example

• Shop spends 10,000 to make 1,000 parts
• Cost is 10.00 per part

or more
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The Impact of Cutting Tools
Price
Tool life
Speed and process improvement
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Productivity Improvement Program
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Survey selected area(s)
Recommend process improvements and tooling
assortment upgrades
Perform sample tests to confirm and establish
savings
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Present results based on recommendations and
sample tests
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Productivity Improvement Programs

• This year alone ...
• Productivity Team Leaders eliminating waste at
  over 300 locations
• Working together with our customer to reach their
  objectives
• Documenting over 62,000 hours of process
  improvements
• Identifying 25M in savings for the US
  manufacturing industry
• Making our customers more competitive
• 2,600 Productivity Analyzer reports

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The Impact of Cutting ToolsA US cost saving
experience

• Tooling represents about 3 of machining costs
• US annual consumption of tooling is about 3
  billion
• Translates into roughly 100 billion in machining
  cost
• 15 in cost reduction equals about 15 billion in
  potential savings

15 billion
Are you getting your share of the potential
savings of 15 billion for the US manufacturing
industry?
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The Impact of Cutting ToolsA-dec

• Leading manufacturer of dental products
• New cast iron baseplate component strained
  capacity
• Tooling reduced cycle times by up to 60
• Capacity increased by 50, solely through tooling

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The Impact of Cutting ToolsHDM Hydraulic, LLC

• Custom hydraulic cylinder manufacturer
• Parts machined in ductile and cold formed steel
• Multi pitch inserts eliminated 75 of threading
  costs
• 300,000 annual savings from tooling

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The Impact of Cutting Tools Synergis

• Manufacturer of stamping dies for the automotive
  industry
• Machining large stamping die block in 4140 steel
• Switched from multiple milling tools to plunge
  cutter
• Tooling change eliminated 90 of machining costs

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The Productivity Improvement Program

• Some frequently asked questions
• What will it do for me?
• What does it cost?
• How long will it take?
• What kind of results will I get?
• Will you convert your own products?
• What can you do about my bottlenecks?
• What about price?
• When can we start?

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Manufacturing Economics Making the right choices
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Manufacturing Economics Making the right choices

• A model by Sandvik Coromant