By Randy Myers, Posted September 25, 2013
In 2011, 48% of manufacturers’ customers used RFPs in their purchasing process. A top reason to issue RFPs? To compare prices.
The heavy hitters in manufacturing are slowly but surely becoming price commodities. Companies are quoting the same projects, trying to win a price war and subsequently shifting the conversation from one of value to one of price. However, manufacturers can reclaim the dialog by making changes upstream in the supply chain—through smarter sourcing and part engineering.
Through the evaluation of assembly drawings, parts and mating components, custom roll forming companies can better identify where material can be reduced and assembly costs can be cut. This evaluation usually results in a part being produced at a much lower cost.
Image Credit: Gurit Composites via Flickr
Conceptual part engineering is a method of evaluating a product or part and determining how the product or part can be improved. Whether it is changing the ductility of material or reducing the overall weight of a product, conceptual part engineering has the potential to cut costs significantly—based on our experience, up to 40%.
Bringing purchasing, engineering and the supplier to the table early can yield a superior product design that is optimized for cost and efficiency. Below are three cost benefits of conceptual part engineering:
1. Material Costs: By reducing the gauge of a material like structural steel, a product can be reengineered to utilize less material content. The end result of this is a decrease in the product’s overall weight.
2. Assembly Costs: Evaluating a product to determine what features are absolutely needed and what features can potentially be eliminated can reduce assembly time and labor costs. By reengineering two parts to function as one, additional fabrication costs and fasteners can be cut.
3. Transportation and Logistics Costs: Once a material’s weight is cut as a result of conceptual part engineering, the cost to ship it inherently decreases. From manufacturing the material to transporting it, costs are cut throughout the process, saving the customer money without compromising quality.
Conceptual part engineering is a valuable sourcing strategy that can reduce costs along the supply chain while maintaining quality. American Roll Form Products partnered with Little Giant Ladders to cut weight by 25%.
Does your organization use conceptual part engineering? If so, are you seeing positive results from taking this unique approach?
For more practical strategies, tips and technologies that can help you achieve greater productivity and design efficiency, download: