THE TERRIBLE TRUTH ABOUT THE PIECE COST IN FOUNDRY
Do you really know how much it costs to produce your piece?
Do you really know what it might cost?
How much does one contingency cost?
How many contingencies occur in a year of production?
I chose to ask you at the beginning of this article to have a clear idea of the PROBLEM that is seriously slowing down your business development and consequently the economic one.
As you well know, each foundry has to supply a piece that is not only smelted but is also cut, deburred and checked and these operations have a cost which is how your client recognizes you.
What is the matter?
It has already happened that your colleagues and I believe you too have made a mistake in calculating the costs of these operations.
Thousands of times I have seen companies having unexpected costs, constantly damaging their production and corporate image with regards to the final client.
Speaking about production, it happens that when you start to produce the mould it is perfect and the production process requires just a few deburring operations.
Everything is true but the fact is worse!
THE TERRIBLE TRUTH ABOUT THE PIECE COST IN FOUNDRY
The mould begins to deteriorate due to bad inspection of the plant and the process, thereby drastically raising your deburring costs.
The cause of this MATTER are 2 alternatives
1- You have one or more external suppliers
2- You have an indoor deburring department
The external supplier
If you have an external supplier, you have constant exhausting negotiations on the pieces and logistic management.
Every day he asks more money for the plant and he will be dissatisfied with what you pay… You will always be more concerned about your rising costs, then you become stressed by the on-going negotiations.
Consequently you have to manage people who control that the external supply works, checking all the pieces to make sure that they fit before handing them over.
Or, even more difficult, you have arranged with someone going back and forth to the external supplier or you own a truck that occasionally brings back all the non-conforming material from your supplier.
IN THIS CASE, YOU CONSIDER THE LOGISTIC COSTS OR YOU DO AS IF THERE ARE NONE DO YOU ADD THEM TO GENERAL EXPENSES?
When you think the process is correct for you, your thoughts are that you still have to deliver the pieces within a few days after melting instead of which, you are in a huge muddle: pieces come and go from your supply, rising costs, client dissatisfaction and interminable delays.
Indoor deburring department
If you have an indoor deburring department the situation is not much better.
You have to wade through material on stock and instead of delivering the goods, you still have to process them thereby creating dramatic situations such as:
- finding other NON-TRAINED employers to educate about the production processes, which instead of solving your problems create new ones.
- You should be managing a company instead, you have to manage thousands of unexpected events.
- Your dream of a process fast, linear and precise as a puma, becomes big, bulky and more like an elephant
It is the worst situation that an entrepreneur like you can have in his company
You have to invest in training people on how they have to work a piece, controlling them and deciding on their perfection.
When they are self-sufficient then they can decide that the job you taught them is exhausting and they go and find another one, leaving you to manage unexpected events by yourself.
Not to mention Monday morning… How many times do you checked who comes to work? … and how important is the issue of safety at work?
I am sure you agree with me in saying that an employee is a problem. Many employees are many problems and amassed they give rise to HUGE PROBLEMS.
Added to all these matters, regardless of whether you have an external supplier for the work or you have an indoor department, you never know the quality of the goods you deliver.
Are you sure that your client will be satisfied?
There is a possible solution:
- Invest in technology
- Invest in the future
- Automate a process which progressively cuts into the cost of your piece
In recent years, companies have invested in presses, furnaces with low energy consumption, in press-automation, while the cutting and deburring process has remained stagnant as it was 100 years ago.
For example my grandfather was a hard worker and 70 years ago he began to do the same work your employees do today.
It is time for a change!
FINALLY, A METHOD AND THE TOOLS TO WORK QUICKLY, SAVING TIME AND MONEY ON YOUR PRODUCTION
Just choose a system that can give you the following benefits:
reliable cycle time
easy to use
rapid capacity to plan production
Reliable cycle time
Once the system has been programmed the cycle time is always the same.
This system guarantees each piece worked in the same way, without ever forgetting to alert the operator to change some operations. All the pieces conform, eliminating once and for all the cast scraps.
Only with this, how much money do you save?
Easy to use
The system is easy and quick to programme, reaching top performance without needing skilled employees.
Rapid ability to plan production
You can always bank on the system, and there is no Monday morning or illness or even worse, industrial accident. The system is always there and ready for your production.
You can best plan your production without depending on anyone’s stomach-ache.
Thanks to these advantages you can reduce the cost of your piece, but especially the cost becomes reliable, clear and safe, and you do not have any further costs or a thousand negotiations anymore.
With this system you can really know how much it costs to produce a piece
And there is more… I ask permission to introduce two new concepts into your business:
With easy piece-tracking (you can store all the information related to the production process of the piece) and control it on the computer.
I do not only reduce your costs, but I also give you tools with added value for your piece.
I am not proposing to try my system on you like being a guinea pig: I am sure it works, because I have thousands of clients who can testify for me. Here you can find some of them: