Reduce the cost of your C-class parts and you reduce the cost of manufacturing. Your product is cheaper and hey presto… your customer is happy!
If only it were that easy. Certainly, with rationalisation of parts and sourcing of product in low cost manufacturing countries, it is a logical consideration. However, at EJOT we are able to demonstrate very easily that there is a limit to how far this can be pursued
without compromise to quality.
When considering the fixing of a joint, the realtime cost of managing a fastener has an immediate and direct input in five critical areas. These are; the fastener itself, assembly, quality of joint, procurement and logistics.
Very quickly the argument to achieve cost savings by reducing the purchase cost of the fastener becomes paper thin. Although some moves have been made to improve the efficiencies of procurement and logistics, assembly technique and the need for quality and inspection are all too often overlooked at the expense of genuine overall savings.
The chart below contrasts the effect of cost saving through fastener price, versus benefits to profit margin achieved through intelligent purchase.
Column 1 Shows the five elements that are involved in the process.
Column 2 Show that even if a cost saving of 10% is achieved in price of the fastener it will only deliver a 2% cost saving overall.
Column 3 Shows how intelligent purchase considers the engineering qualities of the fastener. This dramatically increases the likelihood of significantly higher cost savings than could otherwise be realised. |
