Company:

Original Equipment Manufacturer

Objective:

Reduce piece part cost.

Situation:

The customer’s designs for 4 similar parts called for material ranging from 1.125" to 1.625" in thickness. The function of the parts was the same with no apparent reason for the material to be this heavy or for it to vary from one part to another.

Solution:

D&S personnel questioned the customer’s requirements based on the application and proposed a common material thickness of 0.75". The customer evaluated the recommendation, determined that this would be sufficient and standardized the material thickness.

Bottom Line:

D&S created a cost reduction of $137,000 per year over 4 part numbers. Lead time was reduced from 21 days to 10 days.

Benefits to the customer include reduced piece part cost, steady pricing and lower inventory value.