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Field reduces piece price: total cost savings of $102,000

FIELD PERFORMED AN ANALYSIS OF THE TOP 10 HIGHEST REVENUE PARTS TO FIND COST DRIVING FEATURES

Challenge

When reviewing the top 10 highest revenue parts from a customer, Field noticed that there were certain features on the parts that were significantly driving costs up. In an effort to be more than parts, Field’s engineering team came up with alternatives to design out those cost driving features.

Solution

Field went to the drawing boards and noticed multiple features that were driving the cost of the component. With these in mind, Field presented the low-cost alternatives to the customer to determine if the new ideas could be approved and implemented. Below are the major cost driving features and solutions that field presented for discussion:

  • Eliminate reduced diameter shoulder. This would eliminate a secondary machining process and the scrap associated.
  • Move from brass with nickel plating to 430 stainless steel. This is a less expensive material and eliminates the need for a secondary process. Because other components in the assembly were already 430, the material would be compatible with the application.

    Component- Cost Savings

Results

Field came up with the proposed re-design of the existing component and then worked with the manufacturer to determine what the exact cost benefit would be. Once it was determined that pursuing the opportunity would drive significant financial value, Field then worked with the customer on getting the changes approved. Once approved, we completed an analysis using the lead time for the new design and on-hand material for the existing design. Since the existing part could still be used, Field managed the transition by ensuring that all of the existing material would be consumed prior to transition to the new design. This eliminated any risk for obsolescence and eliminated the need to create a new part number.

Because of this analysis and transition, the total identified cost savings was $102,000.

Field Service Provided

  • Analysis of the top 10 highest revenue parts
  • Proposal of cost driving features
  • Guaranteed seamless transition

 

Are you interested in learning more about cost savings and how Field can help you?

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