“Near Net”
Case study # 1
Our customer had a 6063 aluminum turned part
Finished part weight was 19.7 grams.
Weight of bar stock was 108 grams per part and the cost was HK$2.91 per part for the material. (HK$26.00/kg)
His annual quantity was 360,000 parts so his annual material consumption was HK$687,600
He had to buy cutters and electricity and pay for the labor and machine costs to machine 31.788 tones of material off the bars to make this part.
We provided him with a “Near Net” shape pre-form at a cost 30% lower than buying the bar. This smart decision saved him HK$ 206,280 in materials and he had 24.840 tones LESS material to machine off and sell as scrap creating more savings on cutters, coolants, machines, labor and electricity. He was able to accept another job with the extra capacity and not need to hire more staff or buy additional machines.
He kept his customer that he was going to lose because of a lower quote from a competitor. And he actually increased his profits after he gave his customer required cost down. A smart guy who did not give all his savings away!
