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The Growing Need For Value Added Services in Manufacturing

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Sandvik Coromant sends all carbide inserts and round tools to ISO 14001/OHSAS 18001-certified plants, to ensure that all carbide is recycled using approved, ... – PowerPoint PPT presentation

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Title: The Growing Need For Value Added Services in Manufacturing


1
The Growing Need For Value Added Services in
Manufacturing
Mike Verkamp Business Development Manager Sandvik
Coromant
2
Mike Verkamp
  • Married Father of 3 daughters
  • Education
  • BS Industrial Management/Industrial Engineering
    from Purdue University, West Lafayette, IN
  • MBA from IU, Bloomington, IN
  • Current Position
  • Business Development Manager, Sandvik Coromant
    MAA
  • Hobbies
  • Triathlons, Home Improvement Projects, Leadership
    Training, Coaching

3
Can we really predict the future?
  • The horse is here to stay but the automobile is
    only a novelty, a fad.
  • President of the Michigan Savings Bank advising
    Henry Ford's lawyer not to invest in the Ford
    Motor Co., 1903.
  • The wireless music box has no imaginable
    commercial value. Who would pay for a message
    sent to no one in particular?
  • Associates of David Sarnoff responding to the
    latter's call for investment in the radio in 1921
  • Who the hell wants to hear actors talk?
  • H. M. Warner, co-founder of Warner Brothers,
    1927.
  • Dear Mr. President The canal system of this
    country is being threatened by a new form of
    transportation known as 'railroads'... As you may
    well know, Mr. President, 'railroad' carriages
    are pulled at the enormous speed of 15 miles per
    hour by 'engines' which, in addition to
    endangering life and limb of passengers, roar and
    snort their way through the countryside, setting
    fire to crops, scaring the livestock and
    frightening women and children. The Almighty
    certainly never intended that people should
    travel at such breakneck speed.
  • Martin Van Buren, Governor of New York, 1830(?).

4
Industrial megatrends 2012
  • IT organizations will make foundational
    investments to deliver both IT productivity and
    business value.
  • Manufacturers will focus on clock-speed alignment
    across the supply and demand sides of their
    supply chains.
  • The requirement for speed and the ubiquity of
    information creates a new landscape for IT
    support of the supply chain.
  • The factory of the future will be driven by
    capabilities to fulfill customer demand rather
    than pure production capacity.
  • Manufacturers will shine the environmental
    sustainability spotlight on the factory as a
    means of getting to the product.

Source Association for Manufacturing
Excellence, www.ame.org
5
What does it all mean?
  • Were moving from a world of mass production to a
    world of mass production AND mass
    customizationagility based manufacturing.

6
The Value Chain
Challenges
Capacity Capital purchase planning Competencies
Virtual Machining Programming
Asset Utilization Scrap rate Quality Competence
Inventory Administration Reconditioning Recyclin
g
Components Material Machinability Processes Mac
hines
Purchasing Systems Shipping Product
Marking Product Packing
7
How to find a sustainable solution to communicate
tool data ?
1,000,000 Manufacturing units
50 CAM suppliers
200 Machine tool builders
100 Tool Suppliers
8
ISO13399The Information Carrier
  • Plug Play interface for cutting tool
    information
  • Designed for system to system communication.
  • High demand on information quality
  • International standard. One language for
    communication. One translation is more reliable
    than multiple translations.
  • Possibility to communicate also new cutting tool
    concepts
  • Standardizing how to handle the information not
    the cutting tool itself.

9
The Value Chain
Challenges
Components Material Machinability Processes Mac
hines
Capacity Capital purchase planning Competencies
Virtual Machining Programming
Purchasing Systems Shipping Product
Marking Product Packing
Asset Utilization Scrap rate Quality Competence
Inventory Administration Reconditioning Recyclin
g
10
Metal removal Adding value
Cutting time 60 x 50 x 80 24
11
Impact on cost per part
Value
Before Cost per part 80(2 805 1 275) / 51
100
80
Fixed costs2 805
12 Reduction in Cost/Part
25
Add.v costs 275
Variable costs1 275
Production quantity
51
62
12
Impact on Gross Profit
Before Gross profit 1 020 Gross profit margin
201 020 / (51 x 100)
Value
100
Gross profit1 020
After Gross profit 1 845 Gross profit margin
30(1 020 825) / (62 x 100)
80
Fixed costs2 805
Gross profit825
50 Increase in GP margin 81 Increase in total GP
25
Add.v costs 275
Variable costs1 275
Production quantity
62
51
13
Financial impact summary
Cost Per Part
Gross Profit
80
1 845
Reduction 12
Increase 81
75
70
1 020
14
The Value Chain
Challenges
Components Material Machinability Processes Mac
hines
Capacity Capital purchase planning Competencies
Virtual Machining Programming
Asset Utilization Scrap rate Quality Competence
Purchasing Systems Shipping Product
Marking Product Packing
Inventory Administration Reconditioning Recyclin
g
15
Source www.visualcapitalist.com/portfolio/tungste
n-an-industrial-metal-with-unstable-supply
16
Source www.visualcapitalist.com/portfolio/tungste
n-an-industrial-metal-with-unstable-supply
17
Financially, it makes sense
  • Prices paid for used carbide have ranged from 12
    to 16 per pound recently
  • Recycling programs are easier than ever to
    implement
  • Modern recycling processes yield 90 usable
    carbide

18
But, the best reason to implement a carbide
recycling program might be because it is just the
right thing to do
/18
19
Sandvik Coromant Carbide Recycling
Here's how it worksCall 1-800-SANDVIK
(1-800-726-3845) to order your free
carbide-recycling container.When full, return
your container with packing slip to    Sandvik
Coromant Recycling Program    C/O DHL    2151
South Park Drive, Suite 1    Hebron, KY
41048Sandvik Coromant pays you the current rate
per pound for your recycled carbide. Sandvik
Coromant sends all carbide inserts and round
tools to ISO 14001/OHSAS 18001-certified plants,
to ensure that all carbide is recycled using
approved, environmentally friendly methods.
Together, we can do our part to promote more
sustainable manufacturing processes.
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20
Q A
21
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