Speaking of Precision Blog

Speaking of Precision

Speaking of Precision is a knowledge preservation and thought leadership blog covering the precision machining industry, its materials and services. With over 36 years of hands on experience in steelmaking, manufacturing, quality, and management, Miles Free (Milo) Director of Industry Research and Technology at PMPA helps answer "How?" "With what?" and occasionally "Really?"

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How Value Engineering Saves Money on Machined Part Costs

Posted March 16, 2012 8:00 AM by Milo

You could just send your part CAM files to one of those online services to just make the parts and ship them to you. Sounds pretty high tech. Sexy. New school. No humans involved.

Or you could send them to a company that actively involves its human engineering talent to add value for you, the customer. Old school. And worth it!

(<-- Imagine the cost of both the material lost by turning and the machine time to remove it if this were made from barstock of the greatest diameter.)

Two of the major contributors of a part's cost are material and machining time.

Value engineering at Fairchild Auto-Mated involves engineers evaluating each part to seek ways to reduce these cost factors.

Imagine, engineers getting involved in evaluating your part before production begins.

Decidedly Old School. And decidedly worth it.

The valve component shown above was presented to Fairchild made as one piece carved out of oversize barstock in an single piece.

Fairchild's engineers studied the design, application, and function.

They determined that this part would be less expensive to produce as two separate items assembled and staked together to form this single part.

This design eliminated the costly stock removal of large diameter (expensive) stainless steel, and reduced the amount of (expensive) stainless steel chips produced to generate the stem.

There was no need for the disk portion of this part to be stainless, and so less expensive and more machinable brass was selected for this part of the component.

What was the pay off for value engineering versus the "download the file over the internet and have it go straight into production" process path?

(At $1.00 saved per part, the Customer saved one of these for every 100 parts they purchased thanks to Value Engineering. -->)

The savings identified by Fairchild's value engineers resulted in a total cost savings of over $1.00 per part.

End result for the customer: $48,000 in savings the first year…

If you just want to email your part file to someone and have them make it with no humans involved, well, that is certainly your perogative.

But if you would like to have the benefit of a value engineering teams design review that can find, say, $1.00 per part in cost savings- then you probably ought to make a different decision.

Old school shops like Fairchild have been able to survive through all of the ups and downs in the market- because they continue to add real value and identify real savings for their customers.

And in quantities of 50,000 or more per release, that value engineering can add up to real money.

How do you know your part is optimized for production?

How do you identify real cost savings besides just having jobs rebid?

Do you have a process to involve your suppliers in value engineering?

Or do you just go with lowest bidder for the part as drawn on the print?

Why?

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Re: How Value Engineering Saves Money on Machined Part Costs

03/17/2012 8:52 AM

Judging by the pic you posted I gather THE differrence would be between interferance fit or glue.

I just returned 40 precision bearings ($350 each) because my supplier thought he could save a bundle. The resultant downtime to myself and my clients is beyond mere headache. It now requires legal action.

Idiot widgets notwithstanding these supposedly high tech organizations have yet to feel the grease between their fingers!

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Re: How Value Engineering Saves Money on Machined Part Costs

03/19/2012 11:25 AM

These were swaged or staked, Duckie. The point is that while a lot of Buyers think That just sending the file to a shop who just uploads it and ships is sexy and saves them time; Sending the print to folks like youreself or Fairchild in this case, who do know the feel of grease between their fingers, can identify substantial savings in manufacturing costs without decreasing performance in end use.

Good luck on the bearings case.

Milo

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Re: How Value Engineering Saves Money on Machined Part Costs

03/19/2012 12:18 PM

These days there's more monkeys than organ grinders....rant ongoing

But yeah, I get it.....when the internet can cut down on processing time and give you likewise widget without any attached savvy it's tantamount effect is the emergence of a hands free gizmo generation....a self perpetuating one at that!

In the case of the bearings it was a deception. I can 'feel' a precision bearing before testing it. The supplier was duped into thinking that said bearing can be made to order (it can't...one has to wait for the mfg. line to advance) with a two week waiting time. The duplicates were then laser etched to resemble the original....and I really want to know who is doing that!

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Re: How Value Engineering Saves Money on Machined Part Costs

03/19/2012 12:33 PM

Counterfeiting is a serious problem. Why don't you start a thread on Counterfiets in Manufacturing?

Milo

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Re: How Value Engineering Saves Money on Machined Part Costs

03/19/2012 1:42 PM

I think I will. Since getting into the precision fixit machining racket 25yrs ago this is the second time (and all within two years) this has happened.

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Re: How Value Engineering Saves Money on Machined Part Costs

03/20/2012 1:37 PM

It sounds like you didn't write a procurement specification spelling out the parameters needed. You could have also specified the supplier of the bearings; SKF, ND, Norma, etc or equal. Your supplier figured he could make a little extra money by finding the cheapest bearings he could find. He made a bad choice and so did you.

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Re: How Value Engineering Saves Money on Machined Part Costs

03/20/2012 2:48 PM

I figure that after 25 yrs of exacting specs with me he'd get it the first time. My 'bad choice' was in assuming faith in what was an otherwise exemplary relationship.

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