-How to Reduce your Costs
-Make or Buy?

Quantity
Materials
Tolerance
Threads
Internal Diameters
Surface Finish
Gages & Gaging Equipment
Burrs
Sharp Corners
Concentricity
Dimensional Relationship
Inspection
Deliveries
Over & Under Runs

Quantity. Check annual requirements. Order as larger a quantity as possible.
Why. Large quantities reduce prorated tooling, setup costs, materials costs and provides greater flexibility for the most economical method of manufacturing.

Materials. Physicals permitting, specify standard size of free machining grades.
Why. Standard sizes of materials cost less and are more readily available. Free machining material yields greater production, improved finish and closer tolerances. Consult your supplier on material recommendation.

Tolerance. Specify no closer tolerance or surface finish than absolutely necessary.

Why. If close tolerance work is required, your screw machine supplier can and will make the parts to your specification, but the tolerance requirement is a very important factor in determining the overall cost of the part.

return to top

Threads.
a. Special Threads. American National Standard Institute (ANSI) Unified Inch Screw Threads UN and UNR Thread Form) or other ANSI standard threads.
b. Thread Class Fit and Percent of Thread. Use class 2 fits where application permits. Choose the least percent of thread that gives the required strength.
Why.
a. Special threads require special tools and gages.
b. If closer than class 2 fit is needed, it may require additional operations. The percentage of full thread should be in accordance with generally accepted standard practice.

Internal Diameters
Hole diameters should be specified to permit the use of standard reamers, drills and plug gages.

Why.
Your screw machine supplier stocks standard drills, reamers and plug gages. Special internal diameters can be produced where required.

Surface Finish.
Specify surface finish no closer than necessary to meet functional requirements.

Why.
Close surface finish may require special tooling, slower cycle time or additional second operations.

return to top

Gages & Gaging Equipment.
Wherever possible, part design should avoid the need for special gages.

Why.
Special gages and gaging equipment add to the cost. If special gages are required, they should be provided by the customer.

Burrs.
Do not specify burr removal unless necessary to the function of the part.

Why.
Burrs are a natural result of any machining operation involving intersecting surfaces. Burr prevention and or removal may require additional machining or second operations.

Sharp Corners.
Unless there is a functional need for a sharp corner, specify chamfers or radii at all intersecting surfaces.

Why.
Sharp corners nick easily and require special handling. It is also more economical to produce a part with 'broken corners.'

return to top

Concentricity.
Concentricity as a dimension, should be specified to the maximum allowable limits.

Why.
Concentricity of dimensions often determines how a part will be produced. Holding closer limits than required can cause considerable problems in manufacturing and inspecting.

Dimensional Relationship.
For slotting, slabbing, cross drilling, milling broaching, etc., do not specify definite relationships between dimensions unless required.

Why.
Specifying a close relationship requires expensive fixturing and slows production.

Inspection.
Do not specify 100% inspection except where critical dimensions demand it.
Why.
Quality assurance can most economically be provided through sampling plan inspection. If you have adopted AQL standards, be sure to provide them to your supplier.

return to top

Deliveries.
Allow sufficient lead time for normal planning. Do not ask your supplier to spread delivery over an extended period of time.

Why.
Quick deliveries involve premium material and labor costs. Extended deliveries involve inventory costs.

Over & Under Runs.
Ordering exact quantities increases costs.

Why.
Allowance must be made for overage in production which must be prorated in the quoted price. Standard practice in the Screw Machine Products Industry is quantity variation of plus or minus 10%.
return to top






MAKE OR BUY CHECKLIST
Employees
Capital Investment
Plant Investment
Other Economic Considerations


MAKE OR BUY? - An All Important Decision

Deciding whether to make or buy precision machined products is a complex decision involving the consideration of not only cost, but also many other factors. It requires a team effort with input from those responsible in the areas of purchasing, costing, finance, manufacturing, corporate planning, and policy making.

Your evaluation will involve the interrelationship of many departments and functions of your business. The checklist below will be a good starting point for you to consider many of the factors involved in operating a precision machined products department.

return to top


CHECKLIST

SKILLED/KNOWLEDGEABLE EMPLOYEES REQUIRED - This is by far the Industry's greatest challenge.
Are skilled operators and set-up/operators available to operate the equipment?
Are engineers and other individuals for management and supervisors available?
How will a pool of skilled labor be built?
What training will be offered, at what cost and where?

return to top


CAPITAL INVESTMENT

Machinery
How many and what type of machines will be needed?
Will secondary or other equipment be needed?
How will this equipment be maintained and by whom?

ADDITIONAL WORKING CAPITAL REQUIREMENTS

Inventory - How much inventory will be needed of:
General supplies?
Tooling?
Material?
In-process and finished parts?
Payroll Requirements (hourly and supervisory)
Wages?
Benefits?
What Outside Services Will Be Needed?
Heat treating?
Plating?
Others?
Other Expenses
Insurance?
Taxes?
Capital loan payments?
Supporting Services - A variety of supporting services will be needed in plant, including:
Quality control
Tooling
Material storage/handling
Turnings storage
Parts cleaning
Metalworking fluids - storage and processing
Environmental controls and issues, i.e., noise, oil, mist, etc.

return to top


PLANT INVESTMENTS

How much and what type of floor space will be needed for all of the above?
Equipment Installation - What will be the requirements for:

Electrical wiring?
Floor loading?
Plumbing?
Lighting?
HVAC?
Air (compressed)?

OTHER ECONOMIC CONSIDERATIONS - A variety of other items need to be considered when evaluating the establishment of a precision machined products department, including:

How will scheduling be handled - both internally and when outside services are needed?
How will our personnel be trained to make the correct decisions when purchasing material, tooling, machine tools and supplies?
How will the processing of turnings and metalworking lubricants, and potentially hazardous materials be handled?
Who will be sure that we meet OSHA and other regulations for:
- Noise?
- Personal protective equipment?
- Mist control?
- Disposal of wastes?
- Standards on part cleanliness?
- Quality?

return to top


CONCLUSION

The ultimate question is: What is the best method your company can use to improve its profit position by reducing manufacturing costs? By establishing a precision machined products department can there be cost savings?
OR
Can a properly equipped purchasing department more profitably serve your company through the selection of the best suppliers?


   All Rights Reserved 2002. Fairchild Auto-Mated Parts. 10 White Street · Winsted, Connecticut 06098 · Phone 1-800-927-2545 · Fax (860) 379-5340
   
Web Design by JCM Internet Marketing.   capabilities | industry info | what's new | virtual tour | request a quote | part photo gallery