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Techniques
Sudeep
Tightening Budgets
Spiraling Costs
New Method:
Current Method: Investment Cast,
Machine Hog Out, Machined,
Gun Drilled, Ceramic Core for cooling
Welded Fabrication from channel
316L SST
Est Cost: $6,500
Current Cost: $10,700 Est Tooling: $50,000
Material Substitution
“For every material of a part, there can always be found a less
expensive substitute”.
• Metal with plastic
• Plastic with EPS
• ABS with Polycarbonate
$4.70 $1.75
$1.27 million
saved
Supplier Change
Price Compensation
Create a long term, EoS contract with supplier to bring down the price.
GE Appliance’s contract with SAABIC to sell HIPS is an example
Part Standardisation
Several parts made one.
Economies of Scale
Brain Storming: Sit in a room and throw ideas
to reduce the cost of a specific product
Value Engineering